The Enforcement Directorate (ED) searched 9 locations in Tamil Nadu regarding an alleged ₹90 cr bank loan fraud. The probe involved Ms Inshumathi Refineries Private Limited (IRPL) and searches included Coimbatore, Madurai and Virudhunagar. Officials state that a criminal case has been filed under the Prevention of Money Laundering Act (PMLA).
R.Shenbagan managed IRPL. So ED raided residential and business properties that linked to him.
ED statement
IRPL was enjoying cash credit facilities, Letter of Credit (LOC) facilities and term loans from State Bank of India’s overseas branch in Chennai.
It had availed a total of 46 LOCs from the SBI, which were issued against bogus firms/fake invoices for a value of around Rs 87.36 crore, which was devolved on the bank — which means that the LOC remained unpaid — later due to insufficient funds in their account and also diverted the business proceeds, which resulted into a pecuniary loss of around Rs 90 crore to SBI