OBC fraud: CBI books Punjab CM's son-in-law, registers case against Simbhaoli Sugars
Days after the CBI booked a Delhi-based diamond jewellery exporter for Rs 390 crore fraud at the Oriental Bank of Commerce (OBC). The agency is now probing a case of another case of fraud at OBC allegedly involving Punjab Chief Minister Captain Amarinder Singh's son-in-law.
- Feb 26, 2018,
- Updated Feb 26, 2018 6:27 PM IST
Days after the CBI booked a Delhi-based diamond jewellery exporter for Rs 390 crore fraud at the Oriental Bank of Commerce (OBC). The agency is now probing another case of fraud at OBC allegedly involving Punjab Chief Minister Captain Amarinder Singh's son-in-law. According to the complaint, a loan of Rs 148.60 crore which was given to Simbhaoli Sugars for financing 5,762 sugarcane farmers was diverted by the company for its own needs.
The CBI has registered a case against Simbhaoli Sugars Limited, its Chairman and Managing Director Gurmit Singh Mann, Deputy Managing Director Gurpal Singh, who is also the son-in-law of Punjab CM Amarinder Singh and others in connection with an alleged bank loan fraud of Rs 109 crore at the public sector bank. This is the second FIR that the agency has filed in a span of three days on the complaint of OBC.
Like in the case of Karol Bagh-based Dwarka Das Seth International, CBI did not act on OBC's complaint for three months in Simbhaoli's fraud even though the bank approached the central agency asking to register a case on November 17, 2017, TOI reported. Earlier, CBI took almost six months to file an FIR against the accused in the fraud related to the diamond trader.
Oriental Bank of Commerce is the latest public sector lender to join the list of state-run banks which have been marred by loan defaults. Earlier, PNB, the second largest public sector lender was at the centre of India's biggest banking fraud involving Nirav Modi and his uncle Mehul Choksi.
The probe in the Oriental Bank fraud focuses on two loans - one of 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. The second loan was declared NPA on November 29, 2016, nearly 20 days after scrapping of Rs 1,000 and old Rs 500 notes was announced, according to the CBI FIR.
Accoding to the FIR, OBC was allegedly cheated to the tune of Rs 97.85 crore, but the loss incurred by the bank is Rs 109.08 crore. The company's Chief Executive Officer G S C Rao, CFO Sanjay Tapriya, Executive Director Gursimran Kaur Mann and five non-executive directors have also been booked by the agency.
The CBI on Sunday carried out searches at eight premises including residences of the directors, factory, corporate office and registered office of the company in Delhi, Hapur and Noida, CBI spokesperson Abhishek Dayal said.
According to the FIR, OBC 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 January 25, 2012 to March 13, 2012. The loan money was "dishonestly and fraudulently diverted by the company for its own needs", Dayal said.
According to a MoU, out of the price to be paid by Simbhaoli Sugars Limited to the farmers, loan liabilities were to be adjusted and the remaining amount was to be paid by the company to the growers, according to the FIR.
The account turned NPA on March 31, 2015 and was declared alleged fraud by the bank to RBI on May 13, 2015 for an amount of Rs 97.85 crore.
OBC alleged that in addition to the existing NPA, the bank, under multiple banking arrangements sanctioned another corporate loan of Rs 110 crore to the company on January 28, 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.
"The corporate loan, too, turned NPA on November 29, 2016," Dayal said.
with PTI inputs
Days after the CBI booked a Delhi-based diamond jewellery exporter for Rs 390 crore fraud at the Oriental Bank of Commerce (OBC). The agency is now probing another case of fraud at OBC allegedly involving Punjab Chief Minister Captain Amarinder Singh's son-in-law. According to the complaint, a loan of Rs 148.60 crore which was given to Simbhaoli Sugars for financing 5,762 sugarcane farmers was diverted by the company for its own needs.
The CBI has registered a case against Simbhaoli Sugars Limited, its Chairman and Managing Director Gurmit Singh Mann, Deputy Managing Director Gurpal Singh, who is also the son-in-law of Punjab CM Amarinder Singh and others in connection with an alleged bank loan fraud of Rs 109 crore at the public sector bank. This is the second FIR that the agency has filed in a span of three days on the complaint of OBC.
Like in the case of Karol Bagh-based Dwarka Das Seth International, CBI did not act on OBC's complaint for three months in Simbhaoli's fraud even though the bank approached the central agency asking to register a case on November 17, 2017, TOI reported. Earlier, CBI took almost six months to file an FIR against the accused in the fraud related to the diamond trader.
Oriental Bank of Commerce is the latest public sector lender to join the list of state-run banks which have been marred by loan defaults. Earlier, PNB, the second largest public sector lender was at the centre of India's biggest banking fraud involving Nirav Modi and his uncle Mehul Choksi.
The probe in the Oriental Bank fraud focuses on two loans - one of 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. The second loan was declared NPA on November 29, 2016, nearly 20 days after scrapping of Rs 1,000 and old Rs 500 notes was announced, according to the CBI FIR.
Accoding to the FIR, OBC was allegedly cheated to the tune of Rs 97.85 crore, but the loss incurred by the bank is Rs 109.08 crore. The company's Chief Executive Officer G S C Rao, CFO Sanjay Tapriya, Executive Director Gursimran Kaur Mann and five non-executive directors have also been booked by the agency.
The CBI on Sunday carried out searches at eight premises including residences of the directors, factory, corporate office and registered office of the company in Delhi, Hapur and Noida, CBI spokesperson Abhishek Dayal said.
According to the FIR, OBC 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 January 25, 2012 to March 13, 2012. The loan money was "dishonestly and fraudulently diverted by the company for its own needs", Dayal said.
According to a MoU, out of the price to be paid by Simbhaoli Sugars Limited to the farmers, loan liabilities were to be adjusted and the remaining amount was to be paid by the company to the growers, according to the FIR.
The account turned NPA on March 31, 2015 and was declared alleged fraud by the bank to RBI on May 13, 2015 for an amount of Rs 97.85 crore.
OBC alleged that in addition to the existing NPA, the bank, under multiple banking arrangements sanctioned another corporate loan of Rs 110 crore to the company on January 28, 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.
"The corporate loan, too, turned NPA on November 29, 2016," Dayal said.
with PTI inputs