Published: Mon, February 26, 2018
Money | By Hannah Jacobs

In another bank fraud, Punjab CM's son-in-law among 13 named by CBI

In another bank fraud, Punjab CM's son-in-law among 13 named by CBI

In the second FIR registered in 3 days by the Central Bureau of Investigation (CBI) on the complaint of the Oriental Bank of Commerce (OBC), the CBI has filed a case against Simbhaoli Sugars Ltd for allegedly cheating the bank of Rs 109 crore in 2011 on the pretext of financing sugarcane farmers.

The CBI has named CMD Gurmit Singh Mann, Deputy MD Gurpal Singh, Chief Executive Officer GSC Rao, CFO Sanjay Tapriya and six others, including executive and non-executive directors of Simbhaoli Sugars Ltd, apart from unknown bank officials, in its FIR.

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 stock of Simbhaoli Sugars reacted sharply to this news and at 12:55 hours was trading at Rs. 14.25 per share, down 15.43 per cent, while OBC was trading at Rs. 95.00 per share, down by 10.17 per cent on Monday.

The business loan, too, turned NPA on November 29, 2016, therefore leading to its very first exceptional loan of Rs 97.85 crore (as supposed scams) and the fresh business loan of Rs 109.08 crore (as fresh exceptional), stated CBI Spokesperson Abhishek Dayal.

According to an MoU, of the price to be paid by Simbhaoli Sugars Limited to the farmers, loan liabilities were to be adjusted and the remaining amount was to be paid by the company to the growers, according to the FIR.

The Oriental Bank of Commerce had filed a complaint against Simbhaoli Sugar in November 2017. To pay back this amount, the company took a fresh corporate loan of Rs 110 crore in 2015, and defaulted again.

The OBC was hit by the disclosure of Rs 390-crore scam on Saturday involving a Delhi-based diamond jewellery exporter in bank loan fraud.

On May 13, 2015, the bank declared it as loan fraud of Rs 97.85 crore to the Reserve Bank of India. This loan turned NPA in November 2016.

In March 2015, the loan amount of Rs 148.59 crore to Simbhaoli Sugars was declared as a non-performing asset (NPA) and a fraud in May 2015 for an outstanding amount of Rs 97.85 crore. The company transferred diverted the funds from the Escrow account to other accounts maintained by it with SBI, Punjab National Bank and UCO Bank through RTGS.

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