Top officer of PSU in Chennai arrested for Rs 3.2 cr fraud

The arrested, KVN Rajan of Ambattur, DGM for ITI Ltd (Tamil Nadu and Puducherry), allegedly approached ICMC Pvt Ltd, a fertiliser company in Ambattur Industrial Estate, claiming they have bagged the order to procure face masks and Nitrile gloves to meet the demand at the government hospitals to fight COVID-19.

Rajan reportedly told the proprietor Kannan that ITI Ltd as a government entity did not have the provision to invest money in advance and requested Kannan to make the investment and promised that it would yield huge profits.

Believing him, the company sent Rs 3.20 crore to three different companies but did not get the masks or gloves as told.

Since Kannan could not get his money back, a complaint was lodged at the Central Crime Branch at the city police commissionerate in February this year and the entrustment document fraud wing registered a case.

Since the investigation revealed that Rajan fraudulently made the victim pay the sum to companies and receive commissions, he was arrested and remanded on Tuesday.

Meanwhile, the forgery investigation wing of the Central Crime Branch arrested a 46-year-old man for opening a current bank account in the name of a non-existing company and submitting fake invoices to transfer huge sums abroad in the guise of importing and exporting electric and electronic goods. The accused B Kannan of Pallavaram was arrested based on a complaint from Indian Bank, Thousand Lights branch. Police said the accused evaded tax by producing invoices as if they were approved by the Customs department between 2015 and 2017. A hunt had been launched for a few more suspects in the case.