Delhi Police Arrest Tamil Actor ‘Powerstar’ Over Rs 5-Crore Loan Fraud.

Image Source: Indian Express

S. Srinivasan, also known as ‘Powerstar’, was arrested by Delhi Police’s Economic Offences Wing (EOW) on July 27 from Vanagaram, Chennai. This is his third arrest in the same case. He had been avoiding trial since 2018 and was declared a proclaimed offender twice. He is now in judicial custody.

From Acupressure to Finance and Films

Srinivasan reportedly completed an acupressure course through distance learning from a Chinese university. After moving to Chennai, he started a finance firm called Baba Trading Company. He advertised his services claiming he could arrange large bank loans. He also acted in low-budget Tamil films, eventually calling himself ‘Powerstar’.

The Rs 5-Crore Loan Scam

The fraud began when Blue Coast Infrastructure Development Limited sought funds to build hotels in Chennai. Four men—Henry Lalremsanga, Deepak Banga, Anil Varshney, and Ramanuja Muvvala—introduced the company to Srinivasan, saying he could arrange a Rs 1,000-crore loan.

Srinivasan asked for Rs 5 crore to arrange stamp papers and gave the company a post-dated cheque as security.

Where the Money Went

The company transferred Rs 5 crore on December 27, 2010, to Baba Trading Company. Police found that the money ended up in accounts held by Srinivasan and his wife. Rs 50 lakh was withdrawn in cash, and Rs 4.5 crore was moved to a joint account. A fixed deposit of Rs 4 crore was later made.

Repeated Arrests and Bail Jumps

Srinivasan was first arrested in 2013 after failing to show proof of the loan or the stamp papers. He was given interim bail, promising to repay Rs 10 crore in 15 days, but only paid Rs 3.5 lakh. He fled and was declared a proclaimed offender in 2016.

He was arrested again in 2017, released on bail, and disappeared once more. He was again declared a proclaimed offender in 2018.

Multiple Fraud Cases Pending

Police confirmed that Srinivasan is also facing six other financial fraud cases.