Tamil Nadu

ED searches properties of Virudhunagar-based firm

The Enforcement Directorate (ED) on Saturday searched the properties belonging to Virudhunagar-based Indhumathi Refineries Private Limited (IRPL) for allegedly causing losses to the tune of ₹90 crore to the State Bank of India in a money-laundering case.

Over nine properties of the firm across Tamil Nadu, including Virudhunagar, Madurai and Coimbatore, were under ED’s scanner. The firm is managed by a person named R.Shenbagan and others.

Fake invoices

According to the ED, IRPL was availing term loans, cash credit facilities and letter of credit facilities from the State Bank of India. The firm has availed 46 letter of credits from the bank and this was issued against bogus firms and fake invoices to the tune of ₹87.36 crore.

The bank filed a complaint with Central Bureau of Investigation – Bank Securities and Fraud Cell (CBI-BS&FC), Bengaluru, which registered an FIR and investigated R.Shenbagan, R.Rajan, Raji Shenbagan, Thirumagal Rajan and a few employees of IRPL and the SBI.

ED registered a Prevention of Money Laundering Act 2002 case and during the course of investigations the directors and partners of the firm did not disclose any details of financial transaction, properties involved and the bank accounts.

As per ED’s statement, the searches are being conducted because the directors and partners failed to co-operate.

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Printable version | Oct 15, 2021 4:33:36 AM | https://www.thehindu.com/news/national/tamil-nadu/ed-searches-properties-of-virudhunagar-based-firm/article24905527.ece

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