The case has been filed against Dr Ammamuthu Pillai, who
was a minister in the Jayalalithaa cabinet during 1991-96,
then Chief Manager of Indian Overseas Bank's Palayamkottai
branch in Tirunelveli District, businessman SP
Shenbagamoorthy and others.
CBI officials said the bank manager G Balasubraman had
entered into a criminal conspiracy with Pillai and
Shenbagamoorthy, and abusing his official position had
"dishonestly" sanctioned and disbursed cash credits without
following norms and procedures besides accepting false
In its FIR, CBI said Shenbagamoorthy, proprietor of
Pavana Steels, had submitted an application on February 20,
2009 for sanction of credit limit of Rs 95 lakhs to his firm.
Balasubramanian had "dishonestly" processed the
application and sanctioned cash credit limit under a trade
finance scheme on March 2, 2009 without complying with the
instructions of the bank's regional office.
The bank official had also allowed withdrawal of the
entire money of Rs 82,34,155 through cash and third party
account transfers. The money was diverted for the misuse of
Pillai and one N Kalyanasundaram, the FIR said.
Six other fraudulent loan disbursements were also cited
in the FIR.
Madurai: CBI has registered a case against a
former AIADMK minister and 13 others for allegedly cheating a
nationalised bank to the tune of over Rs 82 lakh by availing
loans in violation of norms during 2007-09.
First Published: Sunday, October 30, 2011, 19:08