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Bank fraud case: CBI conducts raids

By Our Staff Reporter

THIRUVANANTHAPURAM Feb. 15. A Central Bureau of Investigation (CBI) team, on Friday, raided the premises of Muralikrishnan, owner of Creative Systems, as part of a probe into a Rs 75-lakh cheque fraud at the Chalai branch of the Indian Bank.

The raid at the house of Muralikrishnan comes close on the heels of the CBI surprise check at the premises owned by Manacaud Muncipal ward councillor and trade union leader, Chalai Mohanan, on Thursday. A CBI official said efforts were on to trace Muralikrishnan who was reported to be absconding.

The CBI said that several incriminating documents, including cheques, had been seized from the premises of these persons in the presence of independent witnesses.

The CBI has also inspected the premises of Geeta Krishna, brother of Muralikrishnan and the former manager of the Chalai branch of the bank, Rajeevan. Mr. Rajeevan is presently under suspension.

A CBI official described the modus operandi of the fraud as what is described in banking circles as "kite flying''.

The alleged fraud had occurred in the period between December 2001 and May 2002.

The Creative Systems had opened a cash-credit account at the Chalai branch.

The CBI case is that genuine cheques of other customers were withheld with the connivance of the manager and shown as being credited into the account of Creative Systems.

"The method was one of money rotation to keep the account of the computer firm alive. It had resulted in a loss of Rs 75 lakhs to the nationalised bank,'' an official said.

The individual roles of the persons named in the FIR filed by the CBI in connection with the case were being verified.

An official said the probe was at an early stage and a detailed investigation would show the correct picture.

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