Punjab CM's son-in-law booked in Rs 97-cr OBC loan default case

Punjab CM's son-in-law booked in Rs 97-cr OBC loan default case

It is also listed on the Bombay Stock Exchange. Of this, Rs 97.85 crore was declared non-performing asset (NPA).

Shares of Oriental Bank of Commerce and Simbhaoli Sugars lost 9-20 percent intraday on Monday as investors turned cautious post developments of a likely fraud involving the sugar firm.

After submitting the case, CBI browsed eightpremises consisting of houses of Directors of Simbhaoli, its factory, business workplace and signed up workplace in Delhi, Hapur and Noida.

The police has registered a case against several top officials of Simbhaoli Sugar, including its chairman and managing director, chief executive and chief financial officer, some unknown bank officials, and other private persons.

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A few days back, the CBI, on the complaint of OBC, had filed a case to probe a Rs 390 crore fraud committed against the bank by Delhi-based Dwarka Das Seth International diamond trader Sabhya Seth and associates.

The case was registered on Thursday, but Oriental Bank of Commerce had filed the complaint on November 17 previous year.

On May 13, 2015, the bank declared it as loan fraud of Rs 97.85 crore to the Reserve Bank of India. 60 crore loan for the objective of financing around 5,762 sugarcane farmers.

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.

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However, when the money was transferred to sugar company's accounts, it was diverted for other purposes, said the complainant.

But, the corporate loan, too, turned into an NPA on November 29, 2016, thus resulting in its first outstanding loan of Rs 97.85 crore (as alleged fraud) and the corporate loan of Rs 109.08 crore (as fresh outstanding).

In addition to the existing NPA worth Rs 97.85 crore, Oriental Bank sanctioned another corporate loan of Rs 110.00 crore to the company on January 28, 2015, to pay its outstanding loan of Rs 97.85 crore.

"They adjusted the total liability of Rs 112.94 crore on June 30, 2016, by way of deposit of this new corporate loan".

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"It was alleged that the Oriental Bank of Commerce sanctioned a loan amounting to Rs 148.60 crore in the year 2011 to the company (Simbhaoli Sugars)".

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