The bank fraud wing of the Central Crime Branch has arrested three persons on charges of defrauding the HSBC Bank for a sum of Rs. 28 crore after issuing bogus Letter of Credit (LC) certificates from a bank in Visakhapatnam.
Sources with the CCB said the three, who were arrested on Tuesday, are G.R. Mohan (58) of Thiru-vi-ka Nagar, Prem Joseph (42) of Chetpet and Venkateshwaran (48) of Salem. The trio, with the help of their accomplice D. Suresh Rao in Andhra Pradesh, fraudulently obtained four LCs from a Visakhapatnam branch of Bank of India with the help of its manager G.S.P. Subramanian.
When HSBC authorities contacted Subramanian regarding the LC, he gave the approval for funds transfer saying the certificate as valid. Following this, the HSBC Bank in Mylapore, where the accused hold accounts, deposited Rs. 28 crore at various intervals for two LCs. But, before they made deposits for the remaining two LCs, HSBC authorities contacted the Bank of India head office in Mumbai and found out that Subrmanian's branch was not authorised to issue an LC for more than Rs. 1 crore, sources said.
Following a complaint lodged by HSBC representatives, the bank fraud team arrested Mohan, Prem Joseph and Venkateshwaran on Tuesday . A hunt is on for Suresh Rao and Subramanian.