CBI Conducts Searches in T.N. in connection with bank fraud case of over ₹120 Cr

The Central Bureau of Investigation (CBI) on Tuesday (August 12, 2025) conducted searches at six locations in Tamil Nadu including Tenkasi, Chennai, and Tiruchirapalli in connection with a case registered at CBI, BSFB (Bank Security & Fraud Branch), Bengaluru on the directions of the Madras High Court.

The case was registered on the basis of a complaint from Indian Overseas Bank, Chennai, alleging that a Kancheepuram-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 ₹120.84 crore to the Indian Overseas Bank.

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 demonetization. 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.

Searches were carried out at six locations and the premises covered included residential properties linked to the accused company’s directors and officers, as well as business establishments that have suspicious transactions with the accused company, including two private companies which led to recovery of incriminating documents and digital evidence, including records relating to diversion of funds, and other materials relevant to the investigation, said the CBI.

Further investigation is in progress.