CHENNAI: The owners of a sugar factory in Kancheepuram — accused of a Rs 120-crore bank fraud case registered by the CBI in July — have been identified as benamis of VK Sasikala, close aide to the late Chief Minister J Jayalalithaa, after receiving Rs 450 crore in high-value currency during the period of demonetisation.
These details are part of Indian Overseas Bank (IOB)’s complaint, based on which the CBI had registered the case. The central agency conducted searches in Chennai, Tenkasi and Tiruchirapalli on August 12 in connection with the case.
According to the agency’s FIR, Padmaadevi Sugars Limited, its directors Hitesh Shivgan Patel, Dinesh Shivgan Patel, Thamburaj Rajendran, Pandiya Raj, and its CFO Venkata Perumal Murali have been accused. Sasikala is not named as an accused person in the FIR. The case was registered based on the Madras High Court’s order on June 10.
In their complaint, IOB said that the firm had defaulted on a loan and had an outstanding amount of Rs 120.84 crore as on December 31, 2020. The account was declared as fraudulent.
The complaint states that the property had been attached by the Income Tax department under the Prohibition of Benami Property Transactions Act, 1988. This was based on documents seized from Sasikala’s premises, which showed that during the demonetisation, she had paid Rs 450 crore in Old High Denomination notes to buy the sugar mill from the Patel group.
This was affirmed by Hitesh Patel on oath, and that an MOU was signed by him and his family members. The I-T deemed the factory as a benamidaar, as they were holding the property for the benefit of Sasikala.