New Delhi, February 25: The CBI on Sunday registered Rs 97 crore loan default case against Uttar Pradesh based Simbhaoli Sugars Ltd, news agency PTI reported while quoting officials. Also Read - Bihar Cops Became Astrologers to Probe Sushant Singh Rajput Case Without Mumbai Police's Support

The CBI booked CMD Gurmit Singh Mann, Deputy MD Gurupal Singh and others in the case while conducting series of searches at multiple locations across Delhi and Uttar Pradesh. Also Read - SSR Case: Anil Deshmukh Says Mumbai Police's Investigation is 'Very Professional', Supreme Court's Decision Awaited

According to a report, the Uttar Pradesh-based sugar distillery had recently reported a net loss of Rs 74.98 crore in the last quarter of 2017, which was followed by a loss of Rs 19.09 crore in the quarter that ended in December 2016. Also Read - Sushant Singh Rajput Case: Who is Shruti Modi, The 5th Person Booked by CBI Apart From Rhea Chakraborty And Her Family?

The case of loan fraud against comes at a time when the banking sector reels under pressure from Rs 11,400 crore fraud in Punjab National Bank (PNB), involving allegedly by Mumbai-based diamond jeweller Nirav Modi and his uncle Mehul Chowksi. This new case adds up more pressure on the banks and raises some serious questions on the lending procedures.

Finance Minister Arun Jaitley who raised concern over increasing number of wilful defaulters and non-performing assets in the banking system, termed these defaults as ‘a scar on economy’.

“Cases of wilful defaults are something which is much more than the business failure itself,” Jaitley said to media. Jaitley also expressed his concerns that loan defaults went undetected in the banking sector, adding that a single flag was not raised when the fraud was detected.

On Saturday, the CBI had registered a case against another Delhi-based diamond exporter, Dwarka Das Seth International PVT Ltd, and its directors after receiving a complaint from Oriental Bank of Commerce. The case was registered nearly six months after the bank filed a complaint with the central agency.

Earlier this week, the CBI arrested Vikram Kothari, owner of Rotomac Global and his son Rahul in connection with the company’s Rs 3,695 crore loan default.

The probing agency had booked Rotomac Global Pvt Ltd, Kothari, his wife Sadhana and son Rahul for allegedly defaulting on Rs 3,695 crore in loans taken from a consortium of seven banks.