CBI Arrests Proclaimed Offender After 15 Years in ₹2.01 Crore Indian Bank Fraud Cas

Chennai-Coimbatore-New Delhi: In a significant breakthrough in a long-pending bank fraud case, the Central Bureau of Investigation (CBI) has arrested proclaimed offender P. Arokiasamy, who had been absconding for more than 15 years, in connection with a major loan fraud involving Indian Bank in Tamil Nadu.

According to the CBI, the case dates back to January 2010 when the agency registered an FIR based on allegations of financial fraud committed by the directors and associates of M/s Sun Bio Manure Pvt. Ltd., Chennai. The accused allegedly secured a loan amounting to ₹201.63 lakh from Indian Bank’s Veerapandi Branch in Salem district under the pretext of establishing Vermi Culture and Dairy Farming projects.

Fraudulent Loan Secured Through False Property Documents

Investigators found that the accused had obtained the loan by mortgaging properties that they did not legally own. By presenting misleading documents and misrepresenting ownership details, the borrowers allegedly deceived the bank into sanctioning the loan facility.

The fraudulent transaction caused a wrongful loss of approximately ₹2.01 crore to Indian Bank, while enabling the accused persons to gain unlawful financial benefits.

CBI Investigation and Charge Sheet

Following an extensive investigation, the CBI filed a charge sheet against multiple accused, including:

• M/s Sun Bio Manure Pvt. Ltd.
• S. Sakthivel
• S. Vijayakumari
• P. Arokiasamy
• Other private individuals involved in the conspiracy
• S. Balasubramaniyan, then Branch Manager of Indian Bank

The investigation revealed a well-planned conspiracy involving fraudulent loan procurement through forged and misleading documentation. The accused allegedly worked together to obtain bank finance without legitimate collateral, resulting in substantial financial damage to the public sector bank.

Main Accused Absconded During Trial

While the case proceeded through the judicial system, P. Arokiasamy managed to evade arrest and remained absconding throughout the legal proceedings. As a result, the court separated his case from the main trial and continued proceedings against the remaining accused.

The address furnished by Arokiasamy to the bank during the loan application process was later found to be false, making it difficult for investigating agencies to trace his whereabouts.

As repeated attempts to locate him failed, the court issued a Non-Bailable Warrant (NBW) against him.

Declared Proclaimed Offender in 2011

In 2011, the Hon’ble II Additional Court for CBI Cases in Coimbatore formally declared P. Arokiasamy a Proclaimed Offender after he failed to appear before the court despite legal notices and warrants.

Since then, the accused had remained on the run, avoiding law enforcement agencies for over a decade and a half.

Persistent Efforts Lead to Arrest

The CBI stated that its officers continued to pursue the case through sustained intelligence gathering, field verification, surveillance, and tracking operations over the years.

After meticulous efforts and renewed investigation, the agency finally succeeded in locating and apprehending the absconding accused on June 4, 2026.

Officials described the arrest as the culmination of years of dedicated investigative work aimed at ensuring that economic offenders do not escape the reach of law.

Produced Before Court

Following his arrest, P. Arokiasamy was produced before the competent court. The court has remanded him to judicial custody until June 19, 2026.

Legal proceedings against the accused are expected to resume, enabling the court to conclude the remaining aspects of the long-pending bank fraud case.

Crackdown on Economic Offenders

The arrest highlights the continued efforts of investigative agencies to pursue economic offenders irrespective of the time elapsed since the commission of the offence. Authorities have reiterated that absconding accused persons in financial crime cases remain liable for prosecution and can be traced even after many years.

The case also serves as a reminder of the importance of due diligence in banking operations and the need for strict verification of collateral and borrower credentials to prevent financial fraud.

With the arrest of the proclaimed offender, the CBI has achieved a major milestone in bringing one of the accused in the decade-old Indian Bank fraud case back within the ambit of the law. The agency is expected to continue pursuing similar long-pending economic offence cases to ensure accountability and recovery of public funds wherever possible.