Chennai Port Trust fraud: ED arrests 11 in connection with money laundering probe

The Enforcement Directorate on Wednesday said it has arrested 11 people in connection with its money laundering probe linked to alleged fraud in the Chennai Port Trust. Those taken into custody under the Prevention of Money Laundering Act (PMLA) include P V Sudalaimuthu, M Vijay Heralld, M Rajesh Singh, S Siyad, K Zakir Hussain, Suresh Kumar, Ganesh Natarajan, V Manimozhi, J Selvakumar, A Sermathiraja and Arun Anbu, it said in a statement.

The case pertains to an alleged fraud involving Rs 45.05 crore at the Chennai Port Trust.

The probe found, it said, that the suspected persons had submitted fake fixed deposit receipts in Chennai Port Trust. They had fraudulently liquidated the fixed deposits within a couple of days after the opening of the FD with the help of original FD receipts retained by them”.

“It was found that an amount of Rs 45.40 crore was fraudulently transferred to a fake current account in the name and style of Chennai Port Trust- General Insurance Fund,” the ED said.

Around Rs 15.25 crore was withdrawn as cash from the said fake current account by a person “impersonating” as the deputy director, finance of the Chennai Port Trust, it said.

The remaining amount of around Rs 31.65 crore was transferred to several accounts through more than 49 transactions and subsequently withdrawn as cash from those accounts upon “luring” the account holders in lieu of small commission, the agency said.

The ED filed a criminal case under the PMLA against the accused after studying a CBI FIR that was registered in Chennai.

The anti-money laundering agency subsequently raided 15 premises across Tamil Nadu in June last year where it found that “the proceeds of crime (the money obtained out of liquidation of the fixed deposits pertaining to Chennai Port Trust) was invested in acquiring more than 230 acres of land, several plots, vehicles, gold and deposits and the same were attached in December 2021 and February 2022.”