The Directorate of Enforcement (ED), Chennai Zonal Office, conducted search operations at seven premises linked to Thangam Steel Ltd (TSL), PS Krishnamurthy Steels Pvt Ltd (PSK), their directors and key accused in Chennai on May 19 in connection with an alleged bank fraud case involving nearly ₹311 crore.
According to the ED, the investigation was initiated based on two FIRs registered by the CBI’s Economic Offences Branch, Chennai, under charges of cheating and fraud. The agency alleged that both companies defrauded the State Bank of India-led consortium through fabricated financial records, inflated stock statements and forged trade documents.
Investigations revealed that between 2007 and 2013, the accused allegedly secured enhanced cash credit and letter of credit limits using manipulated financial statements, fake transport records and fictitious godowns. The ED further alleged that different balance sheets were submitted before SBI and the Registrar of Companies to conceal the actual financial position of the firms.
The agency said bank funds were diverted for acquiring a steel division and other personal assets through shell entities and layered transactions to hide the identity of the funds.
During the raids, ED officials recovered incriminating documents and electronic records, besides identifying 43 immovable properties allegedly held in benami names, valued at over ₹100 crore approximately.
The ED stated that further investigation in the case is currently underway.
