The Central Bureau of Investigation (CBI) in Chennai has initiated a major crackdown on an alleged bank fraud case, registering a formal complaint against city-based rice mill owners and a company official. The case involves accusations of cheating Canara Bank to the tune of a staggering ₹10 crore by securing credit facilities through forged and fabricated documents.
Who Are The Accused?
The anti-corruption wing of the CBI in Chennai has named K S S Karunakaran and his wife, Revathi, residents of Nanganallur, as the primary accused. They are the owners of Sivaji Hi-teck Agro Foods located in Medavakkam. Additionally, the agency has booked A S Satheesh Kumar, who served as the Chief Financial Officer (CFO) of the firm. The First Information Report (FIR) also includes unidentified officials of Canara Bank, indicating a broader probe into possible collusion.
The Mechanics of the Alleged Fraud
According to the detailed FIR, the fraudulent activity revolved around a substantial loan. Karunakaran availed a loan of ₹9.3 crore from the Anna Salai branch of Canara Bank. The stated purpose was to establish a new, modern rice mill with a production capacity of six tonnes per hour on a 3.06-acre plot at Ariyapadi Village in Arani Taluk, Tiruvannamalai District.
However, the borrowers failed to adhere to the repayment schedule, leading the bank to declare the account as a Non-Performing Asset (NPA) on two separate occasions—once in 2022 and again in 2023. This repeated default triggered internal inquiries by the bank, which eventually unearthed the alleged deception.
Forged Documents Uncovered
The bank's investigation revealed a web of forgery at the core of the loan application. It was found that the supporting documents submitted by the firm to secure the ₹9.3 crore loan were not genuine. Key among these were:
- The quotation for the machinery required for the rice mill.
- The bank statement purportedly showing the initial payment made to the machinery manufacturer.
The CBI alleges that these documents were deliberately forged with the intention to cheat the public sector bank. The agency has invoked relevant sections of the Indian Penal Code (IPC) for cheating, along with provisions of the Prevention of Corruption Act, given the involvement of unnamed bank officials.
The case highlights ongoing concerns about financial frauds targeting banking institutions and underscores the role of central agencies in investigating complex white-collar crimes that impact the public financial system.
