CBI Uncovers Rs 120 Crore Bank Fraud in Tamil Nadu Sweep

The Central Bureau of Investigation (CBI) conducted raids in Tamil Nadu in connection with a Rs 120 crore bank fraud involving Padmaadevi Sugars Limited. The raids uncovered documents related to fraudulent credit facilities and fund misappropriation. The investigation involves shell companies and suspicious transactions during demonetization.

The Central Bureau of Investigation (CBI) has conducted a series of raids at six locations across Tamil Nadu, targeting the homes and offices associated with Padmaadevi Sugars Limited, a company accused of perpetrating a bank fraud worth Rs 120 crore. The operation comes at the behest of the Madras High Court, which directed the CBI to look into the allegations of large-scale financial misconduct.

According to the registered FIR, Padmaadevi Sugars, alongside several partner entities and anonymous public officials, has been accused of engaging in a criminal conspiracy involving various offences such as forgery, cheating, and embezzlement. The fraudulent activities reportedly include procuring credit facilities from the Indian Overseas Bank through falsified means, misappropriating those funds, and funneling them into sister and associated concerns.

The CBI's search operations spanned regions including Tenkasi, Chennai, and Tiruchirapalli and concluded with the seizure of critical documents and digital evidence. These materials are expected to substantiate claims of improper fund usage, including suspicious cash deposits during the 2016 demonetization and fund transfers to disguised entities. The case draws attention to the systemic risks within financial oversight during critical periods.

(With inputs from agencies.)