The Central Bureau of Investigation has registered a case against Simbhaoli Sugars Ltd and its top executives for causing a loss of Rs 109 crore to the Oriental Bank of Commerce.
The FIR named India's largest sugar makers, its chairman, managing director, chief executive officer, chief financial officer and directors for allegedly defrauding the bank. Searches were conducted by the agency in six locations in Delhi, and one each in Noida and Hapur in Uttar Pradesh.
The bank had filed a complaint on November 17, 2017. It was alleged that the Oriental Bank of Commerce sanctioned a loan amounting to Rs 148.60 crore in the year 2011 to the company (Simbhaoli Sugars). The loan was sanctioned for financing individual, joint liability groups, self-help groups (SLG) and sugarcane farmers under the tie-up arrangement under the RBI (Reserve Bank of India) Scheme to 5,762 sugarcane farmers supplying sugar produce to the company... which was dishonestly and fraudulently diverted by said company for its own needs. The account was later declared as an alleged fraud by the bank to RBI on May 13, 2015, for an amount of Rs 97.85 crore," the FIR stated.
Further, the FIR stated that the bank then sanctioned another corporate loan of Rs 110 crore to Simbhaoli Sugars on January 28, 2015, to pay its outstanding loan of Rs 97.85 crore.
"They adjusted the total liability of Rs 112.94 crore on June 30, 2016, by way of deposit of this new corporate loan. The corporate loan, too, turned NPA on November 29, 2016, thus resulting in its first outstanding loan of Rs 97.85 crore (as alleged fraud) and the fresh corporate loan of Rs 109.08 crore (as fresh outstanding)," the FIR also stated.