The chargesheet, laid before the chief metropolitan magistrate at Egmore, cited a total of 14 accused entities, eight of which are companies including Cherraan Constructions Limited and Cheran Foundation Trust. According to the CCB, R Athappan, a Singaporean, was 'lured' by Palanisamy in 2004 to invest Rs 75 crore as share capital in a joint venture company. The idea was to develop 26 acres of immovable property, worth Rs 100 crore, in Coimbatore and build a hotel and an IT park.
Despite the fact that the joint venture agreement made it clear that Palanisamy could not withdraw money from banks without the consent of one Chandran Ratnaswami, he did not reveal it while withdrawing/transferring huge sums of money to other accounts or to himself. Later, he also tried to transfer the immovable land from out of the possession of the joint venture company, the CCB said, adding that he had committed offences punishable under sections 465 (punishment for forgery), 468 (forgery for the purpose of cheating), 471 (using as genuine forged documents), 477-A (falsification of account), 420 cheating and 423 (fraudulent removal or concealment of property).
"As per Clause 4 of the joint venture agreement dated January 30, 2004, the money constituted in Rs 75 crore in the bank account of the company was to be used for development of immovable properties owned by Cheran Properties Limited and Vasantha Mills Limited, Coimbatore. However, while on the one hand Palanisamy misappropriated all the monies invested into the company, he, in collusion with KK Sivakumar, Y Vijayan and C Sivakumar (all directors) attempted to cheat the company and cause loss to it by transferring the immovable assets to Cherraan Constructions Limited, which is nothing but the alter ego of Palanisamy, for paltry sums of money," the chargesheet said.