On Thursday, the Central Bureau of Investigation (CBI) registered a case against the top officials of Simbhaoli Sugars Ltd., one of the biggest sugar mills in India. The top officials include the Chairman Gurmit Singh Mann, Deputy Managing Director Gurpal Singh, Chief Financial Officer (CFO) Sanjay Tapriya, Chief Executive Officer (CEO) G. S. C. Rao and Executive Director Gursimran Kaur Mann. Gurpal Singh is the son in law of the Chief Minister of Punjab Arminder Singh.
On Sunday, the CBI carried out a probe at 8 premises including the residences of top officials, factory, corporate office. The CBI further carried out a probe at the registered offices of Simbhaoli Sugars in Delhi, Hapur and Noida. The officials of Simbhaoli Sugars are involved in two frauds, Rs. 97.85 crore and Rs. 110 crore both from the Oriental Bank of Commerce (OBC.)
The initial loan allegedly taken was Rs. 97.85 crore but OBC was quoted saying the loss faced by the bank is Rs. 109.08 crore. On the 17th of November 2017, OBC reported the fraud to CBI but the probe agency registered the case on the 22nd of February 2018. A criminal conspiracy and cheating case is registered under the Prevention of Corruption Act (POCA.) CBI Spokesperson Abhishek Dayal said, “The loan money was dishonestly and fraudulently diverted by the company for its own needs.”
The FIR filed by CBI states OBC sanctioned a loan of Rs. 148.60 crore to Simbhaoli Sugars in 2011. The loan was sanctioned for financing 5,762 sugarcane farmers. This loan is based on a tie up agreement under a scheme of the Reserve Bank of India (RBI.) The scheme involved supplying sugar produce to Simbhaoli Sugars from the 25th of January to the 13th of March 2012. In 2015, OBC declared the loan of Rs. 97.85 crore as a fraud. The next corporate loan of Rs. 110 crore was reportedly used to repay the previous loan.
