01 November, 2020

Was The Bank Scam Used To Fund The LTTE?

A well-connected Singapore-based NRI could have been the middleman

Was The Bank Scam Used To Fund The LTTE?
outlookindia.com
-0001-11-30T00:00:00+05:53

IT could turn out to be the most shocking fallout of the Rs 1,336-crore Indian Bank scam—even shutting out the Congress and TMC links temporarily. The CBI, probing the multi-crore bungle, is now engaged in following strong leads suggesting that a significant chunk of the finances arbitrarily released by the bank under former CMD M. Gopalakrishnan may have been used to fund the Liberation Tigers of Tamil Eelam (LTTE).

Specific "information" currently in the process of being verified by the CBI indicate that Indian Bank's leading overseas defaulter, Singapore-based NRI and cashew nut exporter Muthukrishna Varatha Raja (MVR), whose total liability to the bank totals Rs 375 crore, diverted money received from the bank to certain front companies allegedly belonging to the LTTE. What is significant here is that not only did Indian Bank blatantly violate set norms in sanctioning advances to MVR's benami companies—as brought out in the 10 cases that the CBI has so far registered against the MVR Group—but that it also did not monitor the manner in which these funds...

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