New Delhi, Aug 12 The CBI on Tuesday conducted searches at six locations in Tamil Nadu in connection with a Rs 120 crore bank fraud and seized incriminating documents and digital evidence linked to a sugar company and its two associate companies.
The searches were carried out at six locations, including Tenkasi, Chennai, and Tiruchirapalli, as part of an investigation into a case registered on the complaint of the Indian Overseas Bank, Chennai.
The premises searched on Tuesday included residential properties linked to the accused company’s directors and officers, as well as business establishments that had conducted suspicious transactions with the accused company.
The CBI recovered digital evidence, including records relating to the diversion of funds, and other materials relevant to the investigation.
The complainant, Indian Overseas Bank, had alleged that a Kanchipuram-based company, along with its associated entities and unknown public servants, committed offences of criminal conspiracy, cheating, criminal breach of trust, misappropriation of property and forgery, causing a wrongful loss of Rs 120.84 crores to it, the CBI said.
The bank identified the Kanchipuram-based company as Padmaadevi Sugars Limited.
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, interest-free advances to private firms, and cash deposits of suspicious origin during the period of demonetisation.
The company and its associated entities are also suspected of transferring funds to shell or benami concerns to conceal the end use of the borrowed amounts, the CBI said in a statement.
The two associate companies which engaged in suspicious transactions with Padmaadevi Sugars were identified as Appu Hotels Ltd and Otium Wood Industries, the CBI said.
The complainant bank reported large cash transactions by the three companies during the note ban, raising suspicion about illegal operations by them using loans taken from it.
The case was registered at CBI, Bank Security and Fraud Bureau, Bengaluru Branch, on the directions of the Madras High Court.
--IANS
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