Chennai: The Enforcement Directorate (ED) has arrested the Chairman of a Tamil Nadu-based medical institute in connection with its money laundering probe in alleged duping of banks and aspiring students to the tune of over Rs 150 crore in 2013.
The agency said it arrested the Chairman of Deen Dayal Medical and Educational Trust, Thiruvallur, T D Naidu, yesterday on charges of being involved in the "offence of money laundering" based on its separate FIR lodged in 2013.
The case pertains to an alleged bank fraud of Rs 136 crore and cheating of students to the tune of Rs 16 crore by Naidu and others.
"The Tamil Nadu police registered 66 FIRs against Naidu based on complaints for cheating students for medical admissions to the tune of over Rs 16 crore. It was complained that he had taken huge amounts of money from aspiring students for medical admissions into the (said) college without having necessary permission from the Medical Council of India. He refused to pay back the same and threatened them.
"Based on these said FIRs, investigations under the Prevention of Money Laundering Act were initiated and it revealed that CBI bank fraud cell Bangalore has also taken up two more cases against him (Naidu) for cheating Andhra Bank to the tune of over Rs 69 crore and Union Bank of India to the tune of over Rs 66 crore," the ED said in a statement.
It was revealed that Naidu "cheated the said bnanks by producing forged and fake documents", it added.
"Naidu in his voluntary statement has admitted the fraud but not revealed the properties acquired using the proceeds of crime," it said.
He has now been sent to judicial custody.
