Overview

• The FIR alleges that VK Sasikala paid Rs 450 crore in old high-denomination notes to buy a Kanchipuram sugar mill during the 2016 demonetisation period.
• Padmadevi Sugars Limited, linked to the transaction, is accused of causing a loss of about Rs 120 crore to Indian Overseas Bank, whose account was declared fraud in 2020.
• The FIR cites a 2020 Income Tax Department order recording documents seized in November 2017 Benami Act searches, including an MoU and share certificates tied to the mill sale.
• An IOB complaint referenced in the FIR says Hitesh Shivgan Patel stated on oath that Rs 450 crore in old notes was received for the factory sold by the Patel Group.
• The CBI’s Banking, Securities and Fraud Branch in Bengaluru registered the case in July and searched six Tamil Nadu locations on August 12 while probing alleged fund diversion, shell transfers and suspicious demonetisation-era deposits.