The Hindu : Tamil Nadu News : Key person held in cheating case

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Tamil Nadu

Tamil Nadu

Key person held in cheating case

L. Srikrishna

CHENNAI: The Central Crime Branch (CCB) police arrested a 34-year-old man identified as K.K. Shivakumar here on Friday on charges of conspiracy, in connection with a Rs 78 crore cheating case. The police had already arrested former Member of Parliament K.C. Palaniswamy of Coimbatore on January 31 in connection with the same case.

Following a complaint from R. Ravichandran, a power of attorney holder of the complainant Cheran Enterprises Private Limited, Commissioner of Police G. Nanchil Kumaran directed the CCB police to register a case. Police said Shivakumar of Nanjammal Naidu Layout, Siruvani Main Road, Perur, Coimbatore, has been working as an assistant professor in the Cherran College of Pharmacy, Coimbatore.

He is a director in many companies owned by Palaniswamy.

Investigations revealed that Palaniswamy had diverted and siphoned off funds from the CEPL to other companies without the knowledge of other directors. He had also forged the signatures of some directors and created an impression that the board meetings were held with their consent.

Police officers said they may examine a few others suspected to be behind the cheating case.

The modus operandi of Palaniswamy was to promise Non-Resident-Indians that he would promote their businesses in various cities in the country. After inducting the investors into his company board as directors, he would divert and siphon off the money. Based on the court directions, a special team conducted searches on the premises of Palaniswamy in Coimbatore and seized incriminating documents a week ago.

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