The Central Bureau of Investigation on Sunday filed a case of loan default against Simbhaoli Sugars Limited based in Ghaziabad in Uttar Pradesh for cheating the Oriental Bank of Commerce of Rs 109 crore, The Hindu reported.
Simbhaoli Sugars is one of the country’s largest sugar refinery companies. It is also listed on the Bombay Stock Exchange.
The CBI has named the company’s Chairman and Managing Director Gurmit Singh Mann, Deputy Managing Director Gurpal Singh and eight other officials in its First Information Report. The investigating agency was conducting searches at multiple locations across Delhi and Uttar Pradesh in connection with the case.
According to the CBI, Simbhaoli Sugars had approached the Oriental Bank of Commerce in 2011 seeking around Rs 148 crore in loan to finance nearly 5,200 sugarcane farmers. However, the sugar company diverted the amount for other purposes, The Hindu reported.
After the account turned into a non-performing asset in March 2015, the bank declared that it was an alleged fraud of Rs 97.85 crore. The bank had also sanctioned a corporate loan of Rs 110 crore to the company in January 2015 to pay off its outstanding loan, which also turned into a non-performing asset in November 2016.
The development comes days after the CBI registered a case against diamond exporting company Dwarka Das Seth International Private Limited and its directors for alleged fraud worth Rs 389.85 crore, and amid allegations against billionaire jewellery designers Nirav Modi and Mehul Choksi of cheating the Punjab National Bank of Rs 11,380 crore.