CBI Investigations: Simbhaoli Sugars Limited at the centre of a bank scam
This case brings forward the issue of corruption in India by CEOs and top officials. The Central Bureau of Investigation had filed a case against executives of Simbhaoli Sugars Limited, one of the top ranked sugar mills in the country.
Deputy General Manager Gurpal Singh, son-in-law of Punjab Chief Minister Captain Amarinder Singh, is one of the suspects in this case of alleged bank loan fraud.
CBI investigations reveal that a bank loan of 150 crore was granted to Simbhaoli Sugars Ltd in 2011 from the Oriental Bank of Commerce. This money was meant to bring financial support to sugarcane farmers under the Reserve Bank of India scheme (RDI). However the money never reached the beneficiaries and was instead diverted to Simbhaoli Sugars’ bank account. The account was proclaimed a non -performing asset (NPA) and fraud in June 2015. Notwithstanding the NPA over Simbhaoli bank account, the latter was previously granted a corporate loan. Consequently, the second loan was later proclaimed an NPA in November 2016.
A complaint was filed against Simbhaoli Sugars Limited by the Oriental Bank of Commerce on 17 November 2017 but actions were only taken recently. Eight properties of Simbhaoli Sugars Limited was investigated and documents were seized for study. Interrogations are to be made shortly.