Bhubaneswar (SunstarTV Bureau): The Economic Offences Wing (EOW), Bhubaneswar arrested one person from Tamil Nadu on the allegation of fraud to the tune of Rs 5.62 crore on Tuesday.
The accused has been identified as S. Kathiresan of Trichy from Trichinapalli district of Tamil Nadu in connection with a bank fraud case registered in 2015, the police said.
According to sources, the arrest was made on the basis of a complaint filed by K.N. Narasimha, the Chief Manger of Union Bank of India. However, Kathiseran had absconded evading police arrest.
Notably, during the year 2009, the accused, in the capacity of managing director of Jagannatha Financial Services Ltd & CEO of KAS Foundation had availed a loan of Rs 5 crore for the purpose of lending the same to the SHG/Joint Liability Group etc, a police official said.
However, the company failed to pay the installments and finally the account turned NPA in November 2011 with an outstanding balance of about Rs 5.62 crore.
Kathiseran was produced before the judicial magistrate-IV, Trichinapalli on Monday and will be produced before the court of SDJM, Bhubaneswar on Wednesday, being brought on transit remand, the EOW said.
According to official statement, the Kathiresan had disbursed the loan to non-existent agriculturists and submitted fabricated & false documents to the bank with criminal intention to defraud the bank to the likely amount and misappropriated the huge amount for his own use.
