India, Sept. 7 -- VK Sasikala, a close aide of former Tamil Nadu Chief Minister J Jayalalithaa, had allegedly paid Rs 450 crore in old high-denomination currency notes to buy a sugar factory during demonetisation in 2016, according to an FIR lodged by the CBI. The Central Bureau of Investigation (CBI) had registered the case on the Madras High Court's directions against Padmaadevi Sugars Limited (PSL) for allegedly causing a loss of Rs 120 crore to the Indian Overseas Bank (IOB). The account was declared fraud in 2020. Sasikala is not named as an accused in the FIR.
The sugar factory of PSL (formerly known as SV Sugar Mills) that the bank had taken as collateral was attached by the income-tax department under the Benami Properties Transact...