Archive · 6 Sep 2025
CBI Investigates Sasikala's Alleged Sugar Mill Purchase
The CBI is looking into whether Sasikala, a close associate of a former political leader, used a large sum of cash to buy a sugar mill during a time when the government had made old money worthless.
The CBI suspects this was done to hide illegal activities.
They believe the sugar mill purchase is linked to a bank that lost money.
The investigation also involves looking at the role of people such as Hitesh Patel and financial records to figure out what happened.
CBI is investigating allegations that Sasikala paid Rs 450 crore in cash for a sugar mill during the 2016 demonetisation period.
The investigation stems from a case against Padmaadevi Sugars Limited (PSL) regarding a loss of Rs 120 crore to Indian Overseas Bank (IOB).
The sugar factory was formerly known as SV Sugar Mills.
The I-T department seized documents indicating the payment for the sugar mill, alleging it was benami property.
CBI conducted searches at six locations in Tamil Nadu in connection with the case.
- Who
- VK Sasikala, Hitesh Shivgan Patel, directors of Padmaadevi Sugars Limited.
- What
- The CBI is investigating allegations that Sasikala purchased a sugar mill using Rs 450 crore in cash during demonetisation.
- When
- The alleged transaction occurred during the 2016 demonetisation period.
- Where
- Kancheepuram, Tamil Nadu, India
- Why
- The CBI is investigating due to suspicions of financial fraud and alleged use of cash during a period of severe cash shortage.
- Involved
- VK Sasikala, Hitesh Shivgan Patel, Padmaadevi Sugars Limited
- Allegation
- Rs 450 crore cash payment for sugar mill during demonetisation
- Bank Fraud
- Padmadevi Sugars Limited accused of defrauding Indian Overseas Bank of ~Rs 120 crore
- Investigation Agency
- Central Bureau of Investigation (CBI)
- Location of Searches
- Six locations in Tamil Nadu
- Property
- Sugar Factory in Kancheepuram, TN (formerly SV Sugar Mills)
