CBI arrests two foreign nationals in Chennai Port Trust fixed deposit scam

Case relates to premature closure of FDs, causing a loss of ₹45.40 cr. to Indian Bank

The Central Bureau of Investigation has arrested two foreign nationals in connection with the fixed deposit scam involving funds of the Chennai Port Trust. The case relates to fraudulent premature closure of fixed deposits, causing a loss to the tune of ₹45.40 crore to the Indian Bank.

The agency had earlier arrested nine suspects in connection with the scam after registering a case in July 2020 on the basis of a complaint lodged by the Indian Bank against its Koyambedu branch (in Chennai) manager, a private individual and “unknown others” accusing them of committing fraud, forgery, and impersonation with the intention of cheating the bank to the tune of ₹100 crore.

Further investigation revealed that the bank suffered a loss of ₹45.4 crore by way of premature closure of the fixed deposits by the suspects, who produced original receipts while issuing duplicate ones to the Chennai Port Trust authorities. The money was transferred to 28 different accounts and later withdrawn by the respective account holders and handed over to the suspects.