CBI registers case against Simbhaoli Sugars CEO, MD
UNDER SCANNER Sugar company accused of causing ₹109 crore loss to OBC
NEWDELHI: The Central Bureau of Investigation (CBI) on Sunday registered a case against Simbhaoli Sugars Ltd and its top executives for causing a loss of ₹109 crore to state-owned Oriental Bank of Commerce (OBC).
In the first information report (FIR), the investigative agency named the firm, which is one of India’s largest sugar makers, its chairman and managing director, chief executive officer, chief financial officer and directors for allegedly defrauding the bank. The agency also conducted searches at eight locations, including one in Hapur in Uttar Pradesh, one in Noida, and six locations in Delhi.
According to the FIR, the bank filed the complaint on November 17, 2017.
“It was alleged that the Oriental Bank of Commerce sanctioned a loan amounting to ₹148.60 crore in the year 2011 to the company (Simbhaoli Sugars). The loan was sanctioned for financing individual, joint liability groups, self help groups (SLG) and sugarcane farmers under the tie-up arrangement under the RBI (Reserve Bank of India) Scheme to 5,762 sugarcane farmers supplying sugar produce to the company… which was dishonestly and fraudulently diverted by said company for its own needs. The account was later declared as alleged fraud by the bank to RBI on May 13, 2015 for an amount of ₹97.85 crore,” stated the FIR, a copy of which was reviewed by
The FIR added that the bank then sanctioned another corporate loan of ₹110 crore to Simb- haoli Sugars on January 28, 2015, to pay its outstanding loan of ₹97.85 crore.
“They adjusted the total liability of ₹112.94 crore on June 30, 2016, by way of deposit of this new corporate loan. The corporate loan, too, turned NPA on November 29, 2016, thus resulting in its first outstanding loan of ₹97.85 crore (as alleged fraud) and the fresh corporate loan of ₹109.08 crore (as fresh outstanding),” the FIR added.
A spokesperson for OBC did not respond to a request for comment.
Over the last 10 days, the CBI has filed more than seven cases on complaints filed by banks including Punjab National Bank, State Bank of India, Oriental Bank of Commerce, Bank of Maharashtra and Telangana Grameena Bank. Most of them relate to conspiracy and cheating, and some involve employees of the bank.
Apart from the complaint filed against the group firms of Nirav Modi and Mehul Choksi for the ₹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).
One case filed by PNB involves an official opening fictitious accounts and diverting funds fraudulently to fake bank accounts, as well as perpetrating fraud under the government’s Mudra scheme.
not reach any of the companies mentioned above, for a comment. MUMBAI/NEW DELHI: Widening its probe into the PNB fraud case, the Enforcement Directorate (ED) will soon send judicial requests to over a dozen countries for obtaining information about the overseas businesses and assets of diamantaire Nirav Modi and owner of Gitanjali Gems Mehul Choksi.
Official sources said the agency will approach a competent court in Mumbai with a request to obtain Letters Rogatories (LRS) to be sent to about 15-17 countries where the central investigation agency has traced the footsteps of the diamond and gold jewellery businesses of the firms owned by Modi, his uncle Choksi and others associated with them. The countries where the LRS would be sent include Belgium, Hong Kong, Switzer- land, the United States, the United Kingdom, Dubai, Singapore and South Africa.
Some official requests on the basis of agency-to-agency exchange will also be sent to few countries, the people aware of the matter said.
The attempt of sending these judicial requests for exchange of information is aimed at obtaining the details of the overseas financial holdings of Modi and Choksi, who are accused in the ₹11,400 crore PNB loan fraud case, their bank accounts, assets, partnerships, showrooms, trusts and other assets, they said.
These assets and their sources of income will be investigated and if necessary would be attached under the criminal sections of the Prevention of Money Laundering Act (PMLA) if it is found that they have been created using tainted funds, the sources said.