The Central Bureau of Investigation (CBI) has connected V.K. Sasikala, a close aide of former Tamil Nadu Chief Minister J. Jayalalithaa, to a ₹450 crore all-cash purchase of a sugar factory in Kancheepuram. The deal reportedly happened during the demonetisation period in 2016.
The purchase is part of a larger investigation into a suspected ₹120 crore bank fraud involving Padmaadevi Sugars Ltd. The Indian Overseas Bank (IOB) has accused the company directors of defrauding the bank.
The CBI’s Banking, Securities, and Fraud branch in Bengaluru is leading the probe, following directions from the Madras High Court. Investigations have included searches in Chennai, Trichy, and Tenkasi.
Documents seized in 2017 income tax raids suggest that Sasikala was the beneficial owner of the sugar mill. Payments for the factory, earlier owned by the Patel Group, were reportedly made in demonetised currency notes.
The CBI has named several individuals in the FIR, including directors and financial officers of Padmaadevi Sugars Ltd. They are accused of misusing funds, diverting bank loans, and suspicious cash deposits.
The investigation is ongoing, and further details are yet to be revealed.