CBI begins probe against two Chennai based firms for financial fraud

The CBI has started probe into an alleged financial fraud by two Chennai firms in which the complainant company allegedly suffered Rs.12 crore loss.  

The CBI has registered case based on a high court order against Sthithi Insurance Pvt Ltd,  Zylog Systems and their senior executives based on a complaint from IFIN Securities Fiance Ltd. 

It is alleged that Sripriya, listed as accused number 1,   availed a loan of Rs.5 crore loan from IFIN Securities Finance Ltd for the purpose of investing and trading in shares by submitting false representations and inflated net worth certificate of 68.53 crore  which included two immovable properties in her name. Out of two properties, one property, belonging to another person, was fraudulently shown as the property of Sripriya  to exaggerate her net worth in the net worth Certificate for the purpose to avail the loan.

Thereafter, Sripriya, her husband P. Srikant, and Srihari -two other accused in the case - have jointly introduced a company called Sthithi Insurance Service Private Limited  to the  IFIN Securities Finance Ltd by stating that the company was represented by Zylog System's senior executives Sudarshan Venkatraman (A3) Ramanujam Sesharathnam (A-4). Taking into consideration of their qualification, social status, company profile and volume of business projected IFIN Securities Finance Ltd has sanctioned loan of Rs 5 crore.

When both the above loans defaulted by the accused persons, a corporate guarantee from Zylog Systems Limited was provided to secure the credit facilities earlier sanctioned. 

Further, it is alleged that, in pursuance to the above criminal conspiracy, the accused persons have submitted false documents to make the IFIN Securitied to believe that  Zylog systems Ltd., had a turnover of Rs. 1200 crore per annum and net worth of Rs. 900 crore as on 31 March 2012 and intended to float Global Depository Receipts (GDR) in Luxembourg Stock Exchange to the amount not less than Rs. 200 crores. Zylog System availed a loan of Rs. 5 crore  by submitting documents of a two disputed properties as collateral. 

CBI has registered a case under IPC sections for criminal conspiracy and cheating.