CBI case against Simbhaoli Sugars first registered in 2015: OBC


State-owned Oriental Bank of Commerce today said Simbhaoli Sugars is an old NPA account of the bank and the first case was registered with CBI in September 2015.

“First complaint to CBI was filed on September 3, 2015 and amended complaint was filed on November 17, 2017. The case has now been registered as per procedures,” the bank said in a regulatory filing.

The bank said Simbhaoli Sugars is an old NPA account which was reported to RBI and CBI as per extant procedures. The total exposure in this account has been adequately provided and there will be no impact on the profitability of the bank, it said.

CBI has registered a case against Simbhaoli Sugars, its chairman Gurmit Singh Mann, deputy MD Gurpal Singh and others in connection with an alleged bank loan fraud of Rs 97.85 crore.

Simbhaoli Sugars is one of the largest sugar mills in the country.

Company’s CEO G S C Rao, CFO Sanjay Tapriya, Executive Director Gursimran Kaur Mann and five non-executive directors have also been booked by the agency.

Gurpal Singh is son-in-law of Punjab Chief Minister Captain Amarinder Singh.

CBI yesterday carried out searches at eight premises including residences of the directors, factory, corporate office and registered office of the company in Delhi, Hapur and Noida, CBI spokesperson Abhishek Dayal said. 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 one.

The second loan was declared NPA on November 29, 2016, nearly 20 days after demonetisation was announced, as per the CBI FIR. OBC stock was trading at Rs 95.05, down 10.15 per cent on BSE. Shares of Simbhaoli Sugars plunged 15.13 per cent to Rs 14.30 apiece.moneycontrol