The CBI (Central Bureau of Investigation) registered a case of bank fraud against Simbhaoli Sugars Ltd, one of India's largest sugar mills, amounting to Rs 200 crore on Sunday.
The private sugar company based in Uttar Pradesh, its top officials, and unknown bank officials have been reportedly booked for defaulting on loans taken from the Oriental Bank of Commerce (OBC).
Around 10 people have been booked, which includes the chairman of Simbhaoli Sugar Mills Limited Gurmeet Singh Mann, Deputy Managing Director Gurpal Singh and CEO GSC Rao.
According to the CBI, in 2011 Simbhaoli Sugars Ltd fraudulently diverted funds that were received as loans for sugarcane farmers and self help groups
Officials shared that the bank had sanctioned a loan in 2011, amounting to Rs 148.60 crore, to the company for financing individuals, joint liability groups and self-help groups under the tie-up arrangement under the RBI Scheme to 5,762 sugarcane farmers, supplying sugar produce to the private company from January 25 to March 13, 2012.
However, the funds were purportedly diverted for personal use and the loan amount was converted into a non-performing asset on March 31, 2015.
Additionally, some bank officials, who have been booked now, in collusion with the top bosses, also got a loan worth Rs 110 crore sanctioned to Simbhaoli Sugar Mills in order to help settle its previous dues.
The corporate loan also turned into an NPA on November 29, 2016, thereby resulting in its first outstanding loan of Rs 97.85 crore as alleged fraud and the corporate loan of Rs 109.08 crore as fresh outstanding.
So far the CBI has conducted searches at the other branches of the firm and the residences of its top employees in Hapur, Noida and six locations in New Delhi.
