MBO Computers' Mani arrested for fraud

S Gopikrishna

MBO Computers proprietor TS Pichumani alias Mani was arrested and remanded to
judicial custody last week following charges of cheating and forgery. According
to market reports, Mani cheated ING Vysya Bank to the tune of Rs 10 crore.

In fact, the crime came to light when Mani was dodging the bank and ING Vysya
officials contacted the customer (LIC Kanpur and Delhi — which was mentioned
in the LC) to verify the order placed by them with MBO Computers. It was found
out that MBO Computers did not supply any goods to them.

When contacted a senior employee at MBO Computers said, “Our director will
come out soon and he is likely to get bail anytime. We do not know anything
related to this issue and I am also not authorized to speak about it.”

TS Pichumani, Proprietor MBO Computers

Mani, and his wife Saraswathi — who is also one of the directors in the
company, approached ING Vysya Bank in the city and availed of various loans by
way of mortgaging and received Rs 10 crore in cash. They submitted the documents
of company stocks, title deeds and book debts to the bank. However, Saraswathi
escaped arrest by getting anticipatory bail, said market sources.

ING Vysya Bank official though confirmed the news but denied to talk much as
the case is currently under legal purview.

The arrest of Mani has sent shock wave among resellers who find it hard to
believe the story. “I have known him for many years and he is more than a
friend. Mani comes from a respected and well-known family. But he was
under-going some crucial period in business, which I am aware of,” said a
leading consumables dealer in Chennai.

MBO Computers' growth was mainly attributed to its relationship with
iMation and the company was a major importer of its products once. “The rise
and fall of Mani was because of imation. Till imation had not setup office in
India (Chennai) in 2005, MBO Computers was doing a good business as an importer.
But, the direct presence of iMation changed the state of affairs and resellers
started to buy iMation products directly from the company and not through MBO
Computers' route, which hit Mani's business badly,” pointed out another
leading consu­mables reseller in the city.

According to market reports, Mani owes money to a few resellers and to
iMation too, in business. Whether he will settle the dues is the biggest
question doing rounds in the market now.