Summary of this article
CBI raids six Tamil Nadu locations over ₹120 crore bank fraud.
Padmaadevi Sugars linked to misappropriation, cheating, and fund diversion.
Documents and digital evidence related to the fraud were recovered.
The CBI 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, officials said.
The central agency swung into action on the directions of the Madras High Court and registered an FIR against Padmaadevi Sugars, 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 include cash deposits of suspicious origin during the period of demonetization in 2016, the spokesperson said in a statement.
The company and its associate entities are also suspected of transferring funds to shell or benami concerns to conceal the end use of the borrowed amounts, she said.
Spanned across six locations in Tamil Nadu, 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 led to the recovery of incriminating documents and digital evidence, including records relating to the diversion of funds and other materials relevant to the investigation, the agency said.
