Company MD arrested for defrauding bank

The Managing Director of a publication company was arrested here on Wednesday for defrauding a bank to the tune of over Rs five crore, police said.

Last Updated: Dec 07, 2011, 16:25 PM IST

Chennai: The Managing Director of a publication
company was arrested here on Wednesday for defrauding a bank to the tune of over Rs five crore, police said.

Sundararaman of Trisakthi Publications was arrested
following a complaint from the manager of Tamil Nadu
Mercantile Bank, Shenoy Nagar Branch, that the former misused
the loan granted to the firm to buy machinery, by preparing
fake documents,a Central Crime Branch release said here.

While Rs 9.73 crore was granted as loan for various
purposes including as working capital, the MD prepared fake
invoice of Rs 5.75 crore in the name of a fictitious company,
the release said.

He opened a separate bank account and deposited the money
and transferred it to other accounts, the release said.

PTI