ED arrests Madan of Vendhar Movies

Chennai, May 24 (IANS) The Enforcement Directorate (ED) said here on Wednesday that it has arrested B. Madan of Vendhar Movies under the provisions of the Prevention of Money Laundering Act, 2002 (PMLA) for cheating the public of Rs 91 crore in the guise of medical admission in the SRM Group of Institutions.

The ED in a statement said it has registered a case under PMLA against Madan and others for cheating under Section 406 and 420 of IPC, 1860.

It said Madan had collected several crores of rupees for admission into SRM Medical College, and then absconded.

At least 133 parents have filed complaints against Madan and it is estimated that about Rs 91 crore has been collected by him for securing medical college admission during 2016.

Madan had absconded and was finally arrested by Tamil Nadu Police. He was later let out on bail.

During investigation conducted under PMLA, statements have been recorded from several victims.

According to the ED, the victims had said that they paid amounts ranging from Rs 50 lakh to Rs 1.05 crore to Madan in cash for a medical college seat in the SRM Medical College but they were cheated.

The SRM management said they had nothing to do with Madan.

Madan in his voluntary statement had admitted that he collected about Rs 91 crore from 133 parents for admission of their wards in MBBS/PG seats in SRM Medical College.

However, he also said that he had paid these amounts on a weekly basis to the SRM management, the ED informed.

According to the ED, Madan has acquired several properties but did not reveal the source of his funds.

"Details of his properties are being collected. The investigations revealed that Shri B. Madan has laundered a part of the proceeds of crime by investing in various properties and thus involved in the offence of money laundering," the ED said.