Rs 120.8 Crore Fraud in Indian Overseas Bank Chennai Branch

A big case of fraud has been reported in Indian Overseas Bank – a public sector bank. Fraud of Rs.120.8 crore has been reported by Padmaadevi Sugars Limited. The case was registered at CBI, Bank Security and Fraud Bureau, Bengaluru Branch, on the directions of the Madras High Court.

The Central Bureau of Investigation (CBI) has carried out raids in connection with a massive bank fraud worth ₹120.8 crore involving Padmaadevi Sugars Limited, a company based in Kanchipuram, Tamil Nadu.

According to officials, the fraud case was filed after Indian Overseas Bank (Chennai branch) complained that the company, along with related businesses and some unknown public officials, cheated the bank and caused heavy financial losses.

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 searches were carried out in six places across Tamil Nadu — including Tenkasi, Chennai, and Tiruchirapalli. Homes of company directors, offices, and other business locations were searched. Officials also raided two other companies, Appu Hotels Ltd and Otium Wood Industries, for suspected links to the fraud.

During the raids, CBI recovered important documents and digital records showing how the money was diverted. Investigations is ongoing and more details will be released soon.