CBI Books Punjab Chief Minister Captain Amarinder Singh’s Son-In-Law In Bank Fraud CaseCaptain Amarinder Singh (Mohd Zakir/Hindustan Times via Getty Images)

The Central Bureau of Investigation (CBI) has registered a case against the top executives of Simbhaoli Sugars Limited in connection with an alleged bank loan fraud of Rs 97.85 crore and for causing a loss of Rs 109 crore to the state-owned Oriental Bank of Commerce (OBC), the Indian Express has reported.

Simbhaoli Sugars Limited is among the largest sugar mills in the country. In its first information report (FIR), the top investigating agency has named company's Chairman and Managing Director Gurmit Singh Mann, Deputy Managing Director Gurpal Singh, chief executive officer, GSC Rao, Chief Financial Officer Sanjay Tapriya, and Executive Director Gursimran Kaur Mann. Five other non-executive directors have also been named. Gurpal Singh, named in the FIR, is the son-in-law of Punjab Chief Minister Capt Amarinder Singh.

These officials have been charged with criminal conspiracy, cheating and forgery under Prevention of Corruption Act for causing loss to the bank.

According to the FIR, the bank filed the complaint on 17 November. The Hapur-based Sugar Company has been accused of fraudulently diverting funds received as loans for sugarcane farmers and self help groups.

The CBI has carried out searches at eight premises and registered office of the company in Delhi, Hapur and Noida.

At the focus of the investigations are 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. As per the FIR, a loan amounting to Rs 148.60 crore was sanctioned to the company in 2011 for financing individual, Joint Liability Groups, and Self-Help Groups under the tie-up arrangement under the RBI Scheme to 5,762 sugarcane farmers supplying sugar produce to said private company during the period from 25 January to 13 March 2012.

It has been alleged that the company has diverted funds for personal use. The account turned Non Performing Asset on 31 March 2015 and was later declared as an alleged fraud by the bank to RBI on 13 May 2015.

The FIR says that the bank sanctioned another corporate loan of Rs110 crore to Simbhaoli Sugars on 28 January 2015, to pay its outstanding loan of Rs 97.85 crore. The second loan was declared NPA on 29 November 2016, nearly 20 days after the government announced the scrapping of Rs 1,000 and old Rs 500 notes.

Over the last week, the CBI has filed more than seven cases on complaints filed by banks including Punjab National Bank, State Bank of India, OBC and Bank of Maharashtra. Most of them relate to conspiracy and cheating cases involving bank employees.

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