CBI books ‘farmers’ for ₹81 cr. bank loan fraud
They passed off husk as urad dal to get credit facilities
The Central Bureau of Investigation (CBI) has registered a case against a group of ‘farmers’, who passed off a huge stock of husk as dal and cheated the Lakshmi Vilas Bank of ₹81.81 crore. The CBI’s Economic Offences Wing has booked 31 borrowers, claiming to be farmers, in Madurai and Virudhunagar districts, on charges of criminal conspiracy, cheating, forgery and falsification of documents to cheat the bank in 2016.
The case is that the socalled
farmers conspired with others and availed themselves of credit facilities under the Lakshmi Commodity Power Scheme of the Lakshmi Vilas Bank from its Madurai and Virudhunagar branches. They stocked huge quantities of husk in the M/s Star Agri Warehousing & Collateral Management Ltd., Rajapalayam, which was nominated as the storage agent of the bank for safe custody of goods, on which the credit facilities are extended under the scheme.
After the loan applicants stored husk in the warehouse, the storage agent gave a false certificate that it was dal.
The bank authorities, who believed the certification to be genuine, released credit facilities to the tune of ₹81.81 crore to the borrowers, who misappropriated the same.
The case, initially registered by the local police, was transferred to the CBI by an order of the Madras High Court, wherein the court stated that “despite a positive direction to the Additional Superintendent of Police, Virudhunagar, to arrest the prime accused Siva and
Surulivel, the Additional Superintendent of Police appeared before this court and expressed his inability to arrest the accused for reasons which are not acceptable to this court.”
The court noted that Siva and Surulivel were partners of M/s Selvarani Dhall Industries, the main beneficiaries. “When the State police had exposed their inefficiency and lack of prudence by reporting that the complaint is not one fit for cognisance, this court is justified in transferring the case to the CBI,” the court had said.