Tamil Nadu: CBI searches 6 premises in Rs 120 cr bank fraud case

New Delhi: The CBI, following the directions of the Madras High Court, conducted searches at six locations in Tamil Nadu on Tuesday in connection with a Rs 120 crore bank fraud case against Kanchipuram-based Padmaadevi Sugars Limited.

The case, instituted on a complaint filed by Indian Overseas Bank, involved the sugar firm, which, along with its associate entities and unknown public servants, allegedly committed offences of criminal conspiracy, cheating, criminal breach of trust, misappropriation of property and forgery.

“The allegations in the FIR include fraudulent availing of various credit facilities from Indian Overseas Bank, misappropriation of property, diversion of bank funds to sister concerns and unrelated entities, siphoning of funds to related parties, and interest-free advances to private firms,” a CBI spokesperson said.

The charges also unexplained cash deposits during demonetisation.

Spanned across six locations, including Tenkasi, Chennai, and Tiruchirapalli, the search operation was conducted at residential premises of the company’s directors and officers, as well as Appu Hotels Ltd and Otium Wood Industries, which allegedly had suspicious transactions with Padmaadevi Sugars.

The searches resulted in the confiscation of incriminating documents, digital data, and records on fund diversion, among other materials pertinent to the probe.