CHENNAI: PGP Group of Companies chairman, Palani G Periasamy, on Wednesday, addressed the media and clarified about the Central Bureau of Investigation (CBI) searches at his company's head office in Nungambakkam on Tuesday.

CBI officials conducted searches at several locations in Tamil Nadu on Tuesday in connection with a Rs 120 crore bank fraud case against Kancheepuram-based Padmaadevi Sugars Limited, in which searches were also conducted at the head office of the PGP group of companies.

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, and interest-free advances to private firms, according to the CBI.

“We have no links with Padmaadevi Sugars. I have not taken any loans from the Indian Overseas Bank. Because of my involvement in the sugar business, I had taken a loan from Padmaadevi Sugars in 2015-16, and returned the loan amount promptly. We cooperated with the CBI officials during the search, and the inquiry was related to the transaction with Padmaadevi Sugars,” Palani G Periamsamy said, adding that he wanted to clarify as his reputation had taken a beating because of misinformation.