The Central Bureau of Investigation (CBI) has registered a case against AC Muthiah, former Indian cricket board chief and then chairman of a Chennai-based private firm, and several of its officials for allegedly duping the Industrial Development Bank of India (IDBI) of Rs 274 crore.
The alleged fraud happened between 2005 and 2013, said a CBI source. After registering a case, the CBI sleuths carried out searches on Friday at eight premises — seven in Chennai and one in Hyderabad — including offices and residences of accused persons and the firm mentioned in the FIR. “The searches led to recovery of incriminating documents that are being examined,” said a CBI source.
“A case was registered on the complaint of IDBI Bank on allegations related to cheating the bank and causing it an estimated loss of Rs 274 crore,” said a CBI spokesperson. The spokesperson said, “The charges levelled against the accused persons and firm were related to criminal conspiracy, cheating, forgery of valuable security, forgery for the purpose of cheating, using forged documents as genuine and falsification of accounts that took place during 2005-2013.”
The others Apart from Muthiah and the firm he then headed, First Leasing Company of India Ltd, the FIR named the firm’s then managing director Farouk Irani, the then senior vice-president S Dilli Raj, chief financial officer L Shivaramakrishnana, two Chennai-based chartered accountants firms M/s Sharthy & Balu and MK Dandeker & Company and others, according to the CBI.
{{/usCountry}}The others Apart from Muthiah and the firm he then headed, First Leasing Company of India Ltd, the FIR named the firm’s then managing director Farouk Irani, the then senior vice-president S Dilli Raj, chief financial officer L Shivaramakrishnana, two Chennai-based chartered accountants firms M/s Sharthy & Balu and MK Dandeker & Company and others, according to the CBI.
{{/usCountry}}Muthiah said he no longer had any role in the company that was run by Farouk Irani, adding that he was chairman only in name. “Because of which, the CBI had come with a search warrant to my home, which is understandable. But, they were very courteous and pleasant,” said Muthiah.
“Nothing incriminating was found and I handed over my financial statements to them, which I filed with the income tax department. The CBI team also comprised bank people. They were four in all and spent some 40 minutes at my place. The company had gone into liquidation some three years ago, but I had nothing to do with the functioning of the firm…but since IDBI had complained, the CBI came with a search warrant to my house also,” he said.