Chennai, Sep 18: The Enforcement Directorate (ED) has initiated extensive searches in Chennai and Hyderabad as part of a money laundering investigation related to an alleged bank fraud amounting to Rs 200 crore and dealings involving benami properties associated with V. K. Sasikala, a close aide of the late Tamil Nadu Chief Minister J. Jayalalithaa.

Officials have confirmed that the searches are taking place at a minimum of ten locations across both cities.

According to sources, the locations are linked to a businessman identified as a suspected benami of Sasikala. The raids are being conducted under the Prevention of Money Laundering Act (PMLA).

This investigation is a continuation of a case initiated by the Central Bureau of Investigation (CBI), which had previously filed a First Information Report (FIR) regarding fraudulent banking activities involving hundreds of crores.

In response, the ED has launched its own inquiry to trace the flow of illicit funds and identify properties that may have been acquired through illegal means or in the names of benami holders.

Sources indicate that officials are currently seizing documents, financial records, property deeds, and electronic evidence from the locations being searched. These materials will be analyzed to establish connections between the bank fraud and assets that are allegedly hidden through benami arrangements.

While the total amount of seized items remains unclear, officials suggest that the raids aim to uncover the full extent of transactions related to this case.

This action brings Sasikala back into the public eye. A significant figure in Tamil Nadu's political landscape for many years, she has faced previous allegations and legal challenges concerning disproportionate assets.

The ED's recent actions renew scrutiny of her financial networks, particularly through associates and business entities believed to be acting as fronts.

Investigators may broaden their inquiry based on the findings from the ongoing searches. Should evidence of money laundering or concealment be substantiated, assets could be provisionally attached under the PMLA, leading to further charges.

The raids have also attracted political attention, with observers noting that the timing and scale of the operation highlight the central agency's renewed emphasis on high-profile economic crimes in Tamil Nadu.