Chennai, September 2025 — A serious new chapter in the long-running investigation into VK Sasikala’s financial dealings has emerged, as the Central Bureau of Investigation (CBI) has filed a First Information Report (FIR) alleging that she purchased a sugar factory in Kancheepuram for a staggering ₹450 crore—paid entirely in old high-denomination currency notes during the 2016 demonetisation phase.   
The Allegations at a Glance
The FIR alleges that Sasikala executed the purchase amid the chaos of note withdrawal, using large amounts of invalidated currency shortly after demonetisation was announced—raising red flags about potential violations of banking and financial norms.
The purchase is reportedly linked to a broader ₹120-crore bank fraud case involving Padmaadevi Sugars Limited (PSL), which had allegedly defrauded the Indian Overseas Bank.
Notably, VK Sasikala is not named as an accused in the FIR, though the investigation frames her as the beneficial owner of the allegedly benami property—the sugar factory located in Kancheepuram, complete with its land, machinery, and installations.
The FIR references documents seized during Income Tax Department raids in November 2017, including a memorandum of understanding and share certificates for SV Sugar Mills Ltd., suggesting these were held by the Patel Group on behalf of Sasikala.
The CBI’s recent actions include searches across six locations in Tamil Nadu—Tenkasi, Chennai, Tiruchirapalli, and others—targeting directors and associates of PSL, as well as related entities such as Appu Hotels Ltd and Otium Wood Industries. The agency is probing allegations ranging from fraudulent credit facilities to fund diversion, siphoning, and suspicious cash deposits during demonetisation.
Context & Implications
Sasikala, who was a close confidante of the late Chief Minister J Jayalalithaa, has long been under scrutiny for her financial dealings. This FIR, filed per directions from the Madras High Court, channels renewed attention to her actions during a period of economic upheaval.
The use of demonetised currency for such a high-profile acquisition could signify orchestrated exploitation of currency controls. The bank fraud angle further suggests systemic irregularities, including misuse of institutional credit and possible laundering through benami holdings.
Why It Matters for Tamil Nadu
This case is not just about the misuse of invalidated currency—it touches upon institutional integrity, transparency in political wealth accumulation, and the rule of law. If proven, such allegations shake public faith in the financial and legal systems underpinning economic governance.
What Lies Ahead
CBI Investigation: With multiple locations under scrutiny, the agency’s next steps may involve interrogations, asset freezes, and deeper forensic audits.
Legal Proceedings: Depending on how evidence unfolds, Sasikala could face direct charges if strong linkage to the transaction is established.
Public Reaction: For citizens of Tamil Nadu and political observers nationwide, this case may reignite debates over accountability, corruption, and the need for reform in political leadership.
The CBI’s FIR exposing a ₹450-crore sugar mill purchase in demonetised notes has thrust Sasikala back into the national spotlight. As investigations unfold, the case promises to be a courtroom drama with deep implications—for governance, justice, and democratic transparency.