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A case against the Simbhaoli Sugars and its top executives for causing loss of Rs 109 crore to the Oriental Bank of Commerce (OBC), which is a state owned bank has been registered by the Central Bureau of Investigation (CBI) on Sunday.
CBI has named the firm, which is India’s one of largest sugar maker, its top executives including chairman, managing director, chief executive officer, chief financial officer and other directors allegeing them of defrauding the bank in the First Information Report (FIR). The search has been conducted by the agency in eight different locations including Hapur in Uttar Pradesh, Noida and six other locations in Delhi.
The complaint by the bank was filed on November 17, 2017. The bank in its complaint alleged that a loan was sanctioned to the Simbhaoli Sugars in 2011 amounting to Rs 148.60 crore. The loan was sanctioned under the scheme of RBI in which they had a tie-up arrangement to provide loan to financing individuals, joint liability groups, self help groups and sugarcane farmers. The scheme of 5762 sugarcane farmers supplying sugar produce to the company which was dishonestly and fraudulently diverted by the said company for its own needs.The account was later declared as alleged fraud to the bank by RBI in May 2015 for Rs 97.85 crore.
It was further alleged that another corporate loan of 110 crore was sanctioned to the company in January 2015 to pay the outstanding loan of Rs 97.85 crore.
Total liability of Rs 112.94 crore was adjusted by way of deposit of new loan in June 2016. But the new corporate law also turned into the Non Performing Asset in November 2016. Thus, the firm has an outstanding of Rs 97.85 crore as alleged fraud and Rs 109.08 crore as fresh outstanding.
Apart from the complaint filed against the group firms of Nirav Modi and Mehul Choksi for the Rs 11,400 crore fraud at PNB and the complaint against Rotomac Global, complaints have been filed by banks against companies including Kalimata Krishipanya Bipanan Pvt. Ltd (by Bank of Baroda) and jewellery exporter Dwarkadas Seth International (by Oriental Bank of Commerce).