Lookout notice issued against Capt Amarinder’s son-in-law in Simbhaoli Sugar mill case

CBI transfer

The Hush Post: I lookout notice has been issued against Chief Minister Capt Amarinder Singh’s son-in-law Gurpal Singh in connection with an alleged Rs 109-crore Simbhahauli Sugar mill bank fraud. The lookout notice has been issued by the Central Bureau of Investigation (CBI).

The premier investigating agency of the country also issued the circular against three top former executives of Simbhaoli Sugars Ltd, namely CEO G.S.C. Rao, Chief Financial Officer Sanjay Thapar and Executive Director Gursimran Kaur Mann.

One of the largest sugar mills in the country Simbhaoli Sugars and its executives are under CBI’s scanner for allegedly cheating the Oriental Bank of Commerce (OBC) in 2011 by availing credit facilities on the pretext of financing sugarcane farmers, a report said.

On March 1, the CBI had questioned Gurpal Singh in connection with the case.

The investigating agency had registered a case against the sugar mill, its Chairman Gurmit Singh Mann, the then (in 2015) Deputy Managing Director Gurpal Singh (now director) and others in connection with the alleged bank loan fraud, the report added.

Rao, Tapriya, Gursimran Kaur Mann and five non-executive directors have also been booked by the CBI.

The probe focuses on two loans — Rs 97.85 crore which was declared fraudulent in 2015 and another corporate loan of Rs 110 crore which was used to repay the previous loan.

The bank was allegedly cheated to the tune of Rs 97.85 crore, but the loss incurred by the bank was Rs 109.08 crore, the FIR registered by the CBI read.

The OBC had complained to the CBI on November 17, 2017, and the agency an FIR of criminal conspiracy and cheating under the Prevention of Corruption Act last month on February 22.

According to the FIR, the 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 a Reserve Bank of India scheme for supplying sugar produce to the company from January 25, 2012 to March 13, 2012, but the money was “dishonestly and fraudulently diverted by the company for its own needs”, the CBI alleged.

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