The Hindu : Tamil Nadu / Chennai News : Held on cheating charge

Online edition of India's National Newspaper
Friday, Nov 11, 2005

Tamil Nadu

Tamil Nadu - Chennai

Held on cheating charge

Staff Reporter

Accused took Rs. 10 lakhs for arranging a business loan

CHENNAI: The Central Crime Branch police on Wednesday arrested N. Muthukrishnan alias Padmanaban (77) of Kodambakkam on the charge of cheating a Punjab-based hotelier. He was remanded to judicial custody on Thursday.

According to police, the Bathinda-based hotelier, P.S. Rekhi, wanted to expand his business and approached J.S. Bhatia, a broker from Hyderabad, in June. The broker introduced him to Mr. Muthukrishnan.

Mr. Rekhi told Mr. Muthukrishnan that he required a loan of about Rs. 5 crores to expand his business. Mr. Muthukrishnan said he was expecting a payment from an NRI, from which he could part with the required amount. He sought Rs. 15 lakhs as processing and stamp fees for the loan. Mr. Rekhi gave Rs. 10 lakhs, and Mr. Muthukrishnan asked him to stay in the city for a few days. After 3 days when he met Mr. Muthukrishnan, he said he was yet to get "Income Tax clearance." He assured Mr. Rekhi that after getting the clearance he would inform him. Following this, Mr. Rekhi returned home.

As there was no communication from Mr. Muthukrishnan even after five months, Mr. Rekhi met R. Nataraj, greater Chennai Police Commissioner, and handed over a complaint to him.

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