The Central Bureau of Investigation (CBI) said on Sunday it had filed a fraud case against executives of Simbhaoli Sugar for causing alleged losses of Rs 1.09 billion to state-run Oriental Bank of Commerce, reports Reuters.
Among those named by CBI in its FIR include Simbhaoli Sugar's Chairman and Managing Director Gurmit Singh Mann, Deputy Managing Director Gurpal Singh and eight others including CFO, executive and non-executive directors of the company apart from unknown officials of the public sector bank.
Once again, like Dwarka Das scams, CBI did not act upon OBC's problem for 3 months in Simbhaoli's scams although the bank approached the main company asking to sign up a case on November 17, 2017. "The account was later declared as alleged fraud by the bank to RBI on May 13, 2015 for an amount of Rs 97.85 crore", stated the FIR, a copy of which was reviewed by Mint. Get instant news updates throughout the day. It is also listed on the Bombay Stock Exchange.
The probe focuses on two loans-Rs 97.85 crore, which was declared fraud in 2015 and another corporate loan of Rs 110 crore-which was used to repay the previous loan.More news: McMaster could leave WH after months of tension with Trump
After submitting the case, CBI browsed eightpremises consisting of houses of Directors of Simbhaoli, its factory, business workplace and signed up workplace in Delhi, Hapur and Noida. "They (bank) adjusted the total liability of Rs 112.94 crore of company in June 2016 by sanctioning this new corporate loan", says CBI. This loan turned NPA in November 2016.
The CBI spokesperson Abhishek Dayal claimed that the loan was sanctioned for financial individuals/self-help groups/ sugarcane farmers, as per a tie-up agreement under an RBI scheme, private company during the period from January 25, 2012, to March 13, 2012.
The bank in its investigation found that the accounts of the farmers were also declared as NPA on March 31, 2015 in accordance with the prudential norms.
In addition to the existing NPA worth Rs 97.85 crore, Oriental Bank sanctioned another corporate loan of Rs 110.00 crore to the company on January 28, 2015, to pay its outstanding loan of Rs 97.85 crore. It is alleged that the funds so raised were fraudulently diverted by the company for its needs.