CBI registers Rs 97 crore loan default case against Simbhaoli Sugar executives

Previously, as initially reported by TOI, CBI submitted a case to probe Rs 390 crore scams devoted with OBC by Karol Bagh based Dwarka Das Seth International diamond trader Sabhya Seth and partners.

Sources say that CBI director Alok Kumar Verma has asked his officers not to sit on complaints on bank frauds and immediately register an FIR. Instead, they waited for three years and filed a complaint in August 2017.

The CBI had on Thursday registered another case of fraud by a Delhi-based jeweller for Rs 389.5 crore involving the Oriental Bank of Commerce.

The CBI has named the company's Chairman and Managing Director Gurmit Singh Mann, Deputy Managing Director Gurpal Singh and eight other officials in its First Information Report.

As per the MoU, out of the sugarcane price to be paid by Simbhaoli Sugars to the farmers, loan liabilities were to be adjusted and the remaining amount was to be paid by the company to the farmers, said the FIR.

A third loan fraud hit scam-laden Indian banking system on Friday after a diamond exporter was found using Letters of Credit (LoCs) issued by Oriental Bank of Commerce (OBC) to pay off other creditors against the purchase of gold and other precious stone and transfer gold and funds outside the country using fictitious transactions.

Ghaziabad-based Simbhaoli Sugars, its directors, CEO, CFO, unknown bank officials and other private persons have been booked by the agency on charges of cheating, criminal conspiracy and under sections of the Prevention of Corruption Act. "He had approached me for consultancy on taking loan".

The various credit facilities company had availed from OBC between 2007 and 2012 swelled to Rs 389 crore during the period. The loan turned into an NPA in 2013 and the bank even sold a property kept as collateral to recover its dues, sources said.

After the account turned into a non-performing asset in March 2015, the bank declared that it was an alleged fraud of Rs 97.85 crore. During the visit to the shady area where the people lived one of the biggest questions that arise was that how the bank passed 100s of crores of loans without checking the profile of the customer. Tech Mach was later removed from the panel of valuers by the bank.

PNB approached the CBI for a second time on Wednesday against one of its branch managers at its Barmer office in Rajasthan.