A team of Corps of Detectives (CoD) officers from Bengaluru visited Soubhagya Lakshmi Sugar Factory in Hirenandi near Gokak, for an inspection of records.
The factory was founded by the former Minister Ramesh Jarkiholi. His sons Santosh Jarkiholi and Amarnath Jarkiholi run the unit now.
A team of three officials led by a Deputy Superintendent of Police visited the factory.
This follows a complaint against the factory by the Apex Bank that the sugar mill has failed to repay loans of over ₹440 crore despite several notices.
The State government has transferred the case registered with Bengaluru Police to the CoD Economic Offences wing, sources said.
