CBI Registers Rs 109 Crore Fraud Against Simbhaoli Sugars, Punjab CM’s Son-In-Law Among 13 Booked

The Logical Indian Crew

February 26th, 2018 / 4:25 PM

Courtesy: The Indian Express, Bloomberg Quint | Image Credit: The Times of India, Firstpost 

The Central Bureau of Investigation (CBI) has registered a case against Simbhaoli Sugars Ltd., a Uttar Pradesh-based private sugar company, for an alleged bank loan fraud of Rs 97.85 crore and loan default of Rs 110 crore, reported The Indian Express. Simbhaoli Sugars Ltd is the largest sugar mill in India.

The cases have been registered against top executives of the bank that include the Chief Executive Officer GSC Rao, CFO Sanjay Tapriya, Executive Director Gursimran Kaur Mann and five non-executive directors. Deputy General Manager Gurpal Singh, the son-in-law of Punjab Chief Minister Amarinder Singh, is also among the ones booked.

“Searches are being conducted at eight premises including residences of Directors, factory, corporate office and registered office of the company in Delhi, Hapur, and Noida,” CBI spokesperson Abhishek Dayal was quoted as saying by news agency IANS, reports The Indian Express.


How did it happen?

The probe focuses on two loans – Rs 97.85 crore that was declared fraudulent in 2015 and another corporate loan of Rs 110 crore that was used to repay the previous loan. The lender, Oriental Bank of Commerce, complained to the CBI on November 12, 2017, but an official case of criminal conspiracy was registered on February 22.

The bank was allegedly cheated to the tune of Rs 97.85 crore, but the total loss incurred by the bank is Rs 109.08 crore, the FIR read, as reported by Bloomberg Quint.

According to the FIR, the loan sanctioned by Oriental Bank of Commerce was of Rs 148.60 crore in 2011. The loan was sanctioned for financing 5,762 sugarcane farmers based on a tie-up agreement under an RBI scheme for supplying sugar produce to the company from January 25, 2012, to March 13, 2012.

“The loan was sanctioned for financing individual/ joint liability groups/self-help groups/sugarcane farmers, as per a tie-up arrangement under an RBI scheme, to 5,762 sugarcane farmers supplying sugar produce to the said private company during the period from January 25, 2012 to March 13, 2012, which was dishonestly and fraudulently diverted by said company for its own needs,” CBI spokesperson Abhishek Dayal said.

The account turned into a Non-performing asset in 2015, and RBI declared it as a fraud account for an amount of Rs 97.85 crore. Oriental Bank of Commerce alleged that in addition to the existing NPA, the bank, under multiple banking arrangements, sanctioned another corporate loan of Rs 110 crore to the company on 28 January 2015 to pay its outstanding loan of Rs 97.85 crore.

The bank adjusted the total liability of Rs 112.94 crore towards the company by way of deposit of the new corporate loan. “The corporate loan, too, turned NPA on 29 November 2016,” Dayal said.


This comes at a time when the country is coping with one of the largest bank frauds – the Punjab National bank Rs 11,400 crore fraud by Nirav Modi and Mehul Choksi and the Rotomac Fraud by Vikram Kothari.


Contributors

Written by : Poorbita Bagchi

Edited by : Pooja Chaudhuri

Share your thoughts..

Related Stories

Africans Accused Delhi

Delhi: Mob Attacks Africans For Being ‘Cannibals’, Police Registers Case Against 200

Rakesh Asthana

CBI’s Special Director Nominated By PM Modi, Booked For Alleged Involvement In Bribery Case

CBI CVC

People Accused Of Crimes By CBI Being Appointed As CBI Officers; Complains CBI To Vigilance Commission

Top IDBI Executives, Former BSE Chairman Named By CBI In Rs 743 Crore IDBI Loan Fraud

UCO Bank: CBI Registers Case Against Former CMD For Rs 737 Cr Fraud

Adani’s Wealth Rises By 109% In 1 Yr, India Ranks 3rd In The Number Of Billionaires: Report

Latest on The Logical Indian

Sports

“Hope No One Will Question My Ability To Win Big Titles”: P V Sindhu After Winning BWF World Tour Finals

News

Delhi HC Serves Life Sentence To Congress Leader Sajjan Kumar In 1984 Sikh Riots Case

My Story

My Story: I Lost My Hand In A Train Derailment But It Didn’t Stop Me From Being An Architect

News

Karnataka Temple ‘Prasadam’ Tragedy: Death Toll Rises To 14, Over 90 Hospitalised

News

Govt Says There Was A Typo When They Cited CAG Report In Supreme Court On Rafale Deal

News

SC Issues Notice To Maharashtra CM Fadnavis For Not Declaring Criminal Cases In Election Affidavit

x

Stories that deserve attention, delivered to your inbox!

Handpicked, newsworthy stories which deserve the attention of a rational generation.