CBI conducts searches in Tamil Nadu in Rs 120 cr bank fraud case

New Delhi [India], August 12 (ANI): The Central Bureau of Investigation on Tuesday conducted coordinated search operations in connection with a case registered at CBI, Bank Security & Fraud (BSFB) Bengaluru Branch on the directions of the High Court of Judicature at Madras, the probe agency said on Tuesday.

CBI said that the case was registered on the basis of a complaint from Indian Overseas Bank, Chennai, alleging that a Kanchipuram-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 Rs 120.84 crores to the Indian Overseas Bank.

CBI Conducts Searches in Tamil Nadu in a Bank Fraud Case of Over Rs. 120 Crore

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August 12, 2025

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, CBI added.

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.

CBI said that the searches were carried out at six locations in Tamil Nadu, including Tenkasi, Chennai, and Tiruchirapalli.

The premises covered included residential properties linked to the accused company directors and officers, as well as business establishments that have suspicious transactions with the accused company, including two private companies, which led to the recovery of incriminating documents and digital evidence, including records relating to the diversion of funds, and other materials relevant to the investigation, press release added.

Further investigation is underway. (ANI)

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