Chennai: The Central Bureau of Investigation (CBI) carried out searches at six locations in Tamil Nadu on Tuesday as part of a probe into a ₹120 crore bank fraud case involving Kanchipuram-based Padmaadevi Sugars Limited, officials said, reported DT Next.
The action followed directions from the Madras High Court, after which the CBI registered an FIR against Padmaadevi Sugars, its associated companies, and unidentified public servants.
According to the CBI spokesperson, 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
The searches were conducted across Tenkasi, Chennai, and Tiruchy, covering the homes of the company’s directors and officers, as well as the premises of Appu Hotels Ltd and Otium Wood Industries, which allegedly had questionable dealings with Padmaadevi Sugars.
During the raids, officers recovered key documents and digital records linked to the alleged diversion of funds, along with other material that could help in the investigation, the CBI said.
