Overview

• Acting on Madras High Court directions, the CBI registered a July case against Padmadevi Sugars Limited after Indian Overseas Bank reported about ₹120 crore in losses and declared the account fraud in 2020.
• The FIR cites a 2020 Income Tax order based on November 2017 searches that seized an MoU and share certificates, along with a sworn statement from Hitesh Shivgan Patel claiming receipt of ₹450 crore in old notes for the Kanchipuram mill.
• The sugar factory taken as collateral by IOB was attached under the Benami Transactions Act, and investigators suspect routing of funds to shell or benami entities to conceal loan end use.
• On August 12, the CBI searched six locations in Tamil Nadu, including Chennai, Tiruchirapalli and Tenkasi, covering directors’ residences and premises linked to Appu Hotels Limited and Otium Wood Industries.
• The FIR lists alleged fraudulent credit facilities, diversion and siphoning of bank funds and suspicious cash deposits during demonetisation, while noting V.K. Sasikala is not named as an accused as the probe continues.