The Central Bureau of Investigation has registered a case on a complaint from Oriental Bank of Commerce against a private Sugar Company based at Simbhaoli, Hapur, Ghaziabad (Uttar Pradesh); it’s CMD & others including Directors, CEO, CFO and unknown bank officials & other private persons, u/s 120-B r/w sec. 420 & 409 of IPC and Sec. 13(2) r/w 13(1)(d) of PC Act 1988 for causing loss of Rs. 109.08 crore(approx.) to the Bank.
It was alleged that the Oriental Bank of Commerce sanctioned a loan amounting to Rs.148.60 crore in the year 2011 to said private company. The loan was sanctioned for financing individual/Joint Liability Groups (JLG) /Self Help Groups (SLG) / sugarcane farmers under the tie-up arrangement under RBI Scheme to 5762 sugarcane farmers supplying sugar produce to said private company during the period from 25.01.2012 to 13.03.2012, which was dishonestly and fraudulently diverted by said company for its own needs. The account turned NPA on 31.03.2015 and was later declared as alleged fraud by the bank to RBI on 13.05.2015 for an amount of Rs. 97.85 crore.
It was further alleged that in addition to the existing NPA dated 31.03.2015, the bank, under Multiple Banking arrangements sanctioned another corporate loan of Rs. 110.00 crore to said private sugar company on 28.01.2015, to pay its outstanding loan of Rs. 97.85 crore, and they adjusted the total liability of Rs. 112,94,99,471/- of said private company on 30.06.2016 by way of deposit of this new Corporate Loan. The corporate loan, too, turned NPA on 29.11 .2016, thus resulting in its first outstanding loan of Rs. 97.85 crore (as alleged fraud) and the fresh Corporate Loan of Rs. 109.08 crore (as fresh outstanding).
Searches are being conducted today at eight premises including residences of Directors, factory, corporate office & registered office of the company in Delhi, Hapur and Noida.