The Central Bureau of Investigation on Thursday, 1 March, questioned Gurpal Singh, son-in-law of Punjab Chief Minister Amarinder Singh, and ex-CEO of Simbhaoli Sugars GSC Rao, in connection with an alleged bank fraud case worth Rs 109 crore.
Meanwhile, the Enforcement Directorate (ED) also registered a money laundering case against Simbhaoli Sugars Limited and its executives under the Prevention of Money Laundering Act (PMLA), officials told PTI.
Gurpal Singh was among the 12 persons booked by the CBI on Sunday, 25 February, in the bank fraud case.
Simbhaoli Sugars Limited is one of the largest sugar mills in the country. The CBI had registered a case against the sugar mill, its chairperson Gurmit Singh Mann, deputy managing director Gurpal Singh and others in connection with the case.
Rao, CFO Sanjay Tapriya, Mann and five non-executive directors had also been booked by the agency.
Searches were carried out at eight premises on 25 February, including residences of the directors, factory, corporate office and registered office of the company in Delhi, Hapur and Noida, CBI spokesperson Abhishek Dayal told PTI.
The case includes a Rs 97.85 crore loan and another corporate loan of Rs 110 crore, which was used to repay the previous loan, both taken by the Oriental Bank of Commerce (OBC).
According to the FIR, the bank was allegedly cheated to the tune of Rs 97.85 crore, but the loss incurred by the bank is Rs 109.08 crore.
Though Oriental Bank of Commerce complained to the CBI on 17 November 2017, the agency registered a case of criminal conspiracy and cheating under the Prevention of Corruption Act only on 22 February.
The FIR stated that the Oriental Bank of Commerce sanctioned a loan of Rs 148.60 crore to the company in 2011. The loan was sanctioned for financing 5,762 sugarcane farmers based on a tie-up agreement under an RBI scheme for supplying sugar produce to the company from 25 January 2012 to 13 March 2012. This was dishonestly and fraudulently diverted by said company for its own needs. The account turned NPA in March 2015 and was later declared as alleged fraud by the bank to RBI in May 2015 for an amount of Rs 97.85 crore.
It was further alleged that in addition to the existing NPA, the bank, under Multiple Banking arrangements, sanctioned another corporate loan of Rs 110.00 crore to Simbhaoli Sugars in January 2015, to pay its outstanding loan of Rs 97.85 crore. The bank adjusted the total liability of Rs 112.94 crore towards the company by way of deposit of the new corporate loan. According to CBI, the corporate loan, too, turned NPA on 29 November 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).
ED Carries Out Raids
Meanwhile, the ED said searches were conducted by the probe agency in Noida and Hapur on Wednesday.
Some documents have been recovered and seized by the sleuths during the raids. Financial details about the company and its officials has also been obtained by the ED from various banks.Senior official to to PTI
(With inputs from PTI.)
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