The CBI has registered a bank fraud cases against a Uttar Pradesh based private sugar company, its top officials along with unknown bank officials for allegedly causing loss of Rs 109 crore to Oriental Bank of Commerce.
According to Central Bureau of Investigation (CBI) officials, the Hapur-based Simbhaoli Sugars Ltd in 2011 fraudulently diverted funds received as loans for sugarcane farmers and self help groups.
CBI also conducted searches at offices of the company and residences of its officials at eight places, including one location each in Hapur and Noida, and six locations in Delhi.
“Searches are being conducted at eight premises including residences of Directors, factory, corporate office and registered office of the company in Delhi, Hapur and Noida,” CBI spokesperson Abhishek Dayal told IANS.
The agency has named the company’s chairman and managing director, its directors, CEO, chief financial officer and unknown bank officials and other private persons, under charges of criminal conspiracy, cheating, forgery slapping sections under Prevention of Corruption Act for causing loss to the bank.
It was alleged that the Oriental Bank of Commerce sanctioned a loan amounting to Rs.148.60 crore in the year 2011 to said private company. The loan was sanctioned for financing individual/Joint Liability Groups (JLG) /Self Help Groups (SLG) / sugarcane farmers under the tie-up arrangement under RBI Scheme to 5762 sugarcane farmers supplying sugar produce to said private company during the period from 25.01.2012 to 13.03.2012, which was dishonestly and fraudulently diverted by said company for its own needs. The account turned NPA on 31.03.2015 and was later declared as alleged fraud by the bank to RBI on 13.05.2015 for an amount of Rs. 97.85 crore.
It was further alleged that in addition to the existing NPA dated 31.03.2015, the bank, under Multiple Banking arrangements sanctioned another corporate loan of Rs. 110.00 crore to said private sugar company on 28.01.2015, to pay its outstanding loan of Rs. 97.85 crore, and they adjusted the total liability of Rs. 112,94,99,471/- of said private company on 30.06.2016 by way of deposit of this new Corporate Loan. The corporate loan, too, turned NPA on 29.11 .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).
Officials said that the Bank sanctioned a loan amounting to Rs 148.60 crore in 2011 to the private company for financing individual, Joint Liability Groups, Self-Help Groups under the tie-up arrangement under the Reserve Bank of India (RBI) scheme to 5,762 sugarcane farmers supplying sugar produce to said private company during the period from 15 January to 13 March, 2012.
According to complaint, the account turned Non Performing Asset (NPA) on 31 March, 2015 and was later declared as alleged fraud by the bank to RBI on 13 May, 2015 for an amount of Rs 97.85 crore.