New Delhi, Feb 26: The Central Bureau of Investigation (CBI) has registered a fraud case against top officials of Simbhaoli Sugars Ltd including Punjab Chief Minister Amarinder Singh‘s son-in-law Gurpal Singh, who is also deputy general manager. The agency has registered Rs 97.85 crore loan default case against Uttar Pradesh based Simbhaoli Sugars Ltd. Also Read - Shekhar Suman's Son Adhyayan Supports Father's Involvement in Sushant Singh Rajput Suicide Case, Says he 'Knows Pain of Losing a Son'
The CBI has also booked 12 others including the chairman, CEO and other company officials. Searches were conducted at eight premises by the CBI officials. The FIR filed by agency focuses on two loans — Rs 97.85 crore which was declared fraud in 2015 and another corporate loan of Rs 110 crore which was used to repay the previous loan. Also Read - Tamil Nadu Custodial Deaths: 2 Police Officers Arrested on Murder Charges as CBI Takes Over Jayaraj-Fenix Case
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, the FIR read. The lender, Oriental Bank of Commerce, has complained to the CBI on November 17, 2017, but the agency registered a case of criminal conspiracy and cheating on February 22.
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 January 25, 2012, to March 13, 2012.
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’.