After Rs 11,000-crore PNB fraud & Rotomac scam, a third fraud involving crores has come to light in just over a fortnight. A senior executive in the company happens to be a top Punjab Congress leaders relative
CBI files case against CMD of Simbhaoli Sugar Ltd.The Hush Post: Another scam has been reported as the Central Bureau of Investigation CBI has registered a case against Simbhaoli Sugars Ltd and its CMD and directors for cheating Oriental Bank of Commerce (OBC). The OBC has claimed that there has been a fraud of Rs 200 crore. And this fraud has been committed by Simbhaoli Sugars Ltd, Hapur.
The Chairman and Managing Director of the company Gurmit Singh Mann, deputy MD Gurpal Singh and eight others have been named in the complaint. One of the board of directors in Simbhaoli Sugars registered for bank fraud is the relative of a Congress leader from Punjab. At present, the CBI is searching many locations in Delhi and Uttar Pradesh as part of the investigation.
It all started in 2011, when the company sought loan to the tune of Rs 150 crore from OBC. This was for financing 5,200 sugarcane farmers. However, when the money was transferred in farmers’ accounts, it was routed for purposes other than sugarcane farming. When the bank asked Debt Recovery Tribunal (DRT) to pitch in, Simbhaoli Sugars took one more loan three years ago of Rs 110 crore to pay the earlier loan.
As per the complaint, OBC has said that Simbhaoli in November 2011 came up with a proposal that sugarcane agriculturists need to be financed. The company was somehow posing farmers’ intermediaries. The company gave the names of each farmer and the details of their land holding and size. The company also submit the KYC and some more documents. The OBC bank issued loans to about 5,700 farmers, which has not been repaid.