Surat: A loan fraud worth ₹15.65 crore has come to light at a sugar mill in Surat district of Gujarat, triggering concern in the cooperative sector, DeshGujarat reported.
According to police, the management of Kantha Sugar Mill in Sarsa village of Olpad taluka allegedly secured a loan of Rs 15.65 crore from the National Cooperative Development Corporation (NCDC) by submitting forged documents showing inflated sugar stocks.
Investigators said that while only around 4,000 quintals of sugar were actually stored in the mill’s godown, records were prepared showing a stock of nearly 59,000 quintals. The loan was reportedly sanctioned on the basis of these documents without proper physical verification.
The complaint in the case was filed by Brijesh Patel, chairman of the government-appointed custodian committee of the mill.
Following the complaint, police registered a case against former managing director Pradeep Padun, godown keeper Pradeep Patel and Jatin Nayak.
Police said all three accused have been arrested and further investigation is underway to determine whether others were involved in the alleged fraud.
