FIR Sparks Fresh Investigation

VK Shashikala, a close aide of the late Tamil Nadu Chief Minister J. Jayalalithaa, is under scrutiny following a new CBI FIR concerning a ₹450 crore cash transaction during the 2016 demonetisation period, allegedly linked to the purchase of a sugar mill.

Focus on Padmadevi Sugars Ltd (PSL)

The Madras High Court has directed new lines of inquiry, bringing Padmadevi Sugars Ltd (PSL) under the spotlight. PSL allegedly cheated Indian Overseas Bank (IOB) of ₹120 crore, and its account was declared fraudulent in 2020, prompting a detailed investigation into its financial dealings.

Shashikala’s Role in Question

While the FIR does not explicitly name Shashikala as a direct accused, investigators believe evidence is gradually pointing towards her involvement. Sources indicate that the inquiry could intensify and potentially impact her legal position.

Bank and Tax Implications

The sugar mill had been hypothecated to IOB before the sale. Subsequently, the Income Tax Department seized the property under the Prohibition of Benami Property Transactions Act. A 2017 raid revealed documents indicating massive cash transactions in old demonetised currency notes.

Key Testimony

Hitesh Shivgan Patel, who managed PSL’s finances, submitted a sworn statement admitting to receiving ₹450 crore in demonetised notes for the Kanchipuram sugar mill transaction. The timing of this deal, occurring post-Jayalalithaa’s death, raises questions about its intent and purpose.

CBI Tracks Money Trail

The Indian Overseas Bank complaint includes detailed transaction records, aiding the CBI in tracing possible benami assets and bank fraud. Investigators are working to expand the inquiry to uncover all linked parties and financial irregularities.

Political and Legal Fallout

The case has stirred political circles in Tamil Nadu, with growing attention on Shashikala’s wealth and the implications for her associates. Legal experts suggest that the matter could evolve into a high-profile court case, depending on the outcomes of the central agency’s ongoing probe.

The post Shashikala Under Scanner Again: CBI Probes ₹450-Crore Demonetisation-Era Deal Linked to Sugar Mill Purchase appeared first on Odisha Connect.