Rs 125 crore loss: Chennai bizman arrested for document fraud

CHENNAI: Central Crime Branch (CCB) of Chennai Police on Wednesday arrested city businessman, Shaji Purushothaman (48) of Empee distilleries for allegedly causing Rs 125 crore loss to SNJ distilleries private limited.

The EDF (Entrsutment document fraud) wing of CCB arrested the 48-year-old businessman after the latter’s plea for advance bail was rejected by the Madras High Court.

SNJ Distilleries’ takeover of Empee Distilleries Ltd for Rs 475 crore was approved as per the Corporate Insolvency Resolution Process (CIRP). According to a complaint by the management of SNJ Distilleries, even as the process was under way, Empee group created false documents as if about 4 crore shares of a sister concern of Empee distilleries – Apollo distilleries and breweries were disbursed as loans to South (India) Hotels Private Limited, also belonging to the same management. This was submitted to the tribunal too.

It is the contention of SNJ distilleries that with the false records, Rs.125 crore loss has been caused to them against which a complaint was filed with Chennai police and a FIR was registered.

Police said that Shaji was picked up from his guest house in Uthandi along East Coast Road.

It may be noted that Shaji Purushothaman was involved in the hit and run of a 13-year-old in Egmore. Shaji Purushothaman, drove his Mercedes Benz in drunken state on the night of May 22, 2013 and ran over people sleeping in a pavement on Pantheon Road killing a 13-year-old boy and injuring others.