Simbhaoli Sugars Shares Slump 16% On Loan Default Case

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Image Credits: Simbhaoli Sugars Ltd

The other two are the Bajaj group, which has 15 mills, and the Modi group with two mills.As per the records of the cane department, Simbhaoli is the biggest defaulter on payment of dues in the current crushing season. Simbhaoli Sugars, which is being probed by the Central Bureau of Investigation (CBI), on Monday said it is committed to clearing its outstanding dues to OBC in “due course of time” in consultation with all the lenders.

The Oriental Bank of Commerce had filed a complaint against Simbhaoli Sugar in November 2017. Apart from Gurpal, Simbhaoli Sugars’ Chairman Gurmeet Singh Mann, CEO G S C Rao, CFO Sanjay Tapria, Executive Director Gursimran Kaur Mann are among the other 12 who have been booked. The CBI alleged in the FIR that OBC sanctioned a loan of Rs.148.59 crore to Simbhaoli Sugars in December 2011 after the company approached it with a proposal for financing Sugarcane farmers under the tie-up arrangement with the company, with a maximum limit of Rs.3 lakh per farmer.

The Uttar Pradesh-based private sugar organization, its best authorities, alongside obscure bank authorities have been reserved by the office for professedly defaulting on credits taken from the Oriental Bank of Commerce (OBC). The account turned into a Non-performing asset in 2015, and RBI declared it as a fraud account for an amount of Rs 97.85 crore. This new case adds up more pressure on the banks and raises some serious questions on the lending procedures. The CBI on Sunday carried out searches at eight premises including residences of the directors, factory, corporate office and registered office of the company in Delhi, Hapur and Noida, said media reports quoting CBI spokesperson Abhishek Dayal. On May 13, 2015, the bank declared it as loan fraud of Rs 97.85 crore to the Reserve Bank of India.

CBI in its FIR has alleged that the bank in January 2015 issued another corporate loan of Rs. 110 crore to the company to repay the previous loan of Rs. 98 crore. The bank was allegedly cheated to the tune of Rs 97.85 crore, but the loss incurred by the bank is Rs 109.08 crore, the FIR read. Newburgh Gazette http://newburghgazette.com/2018/03/28/simbhaoli-sugars-shares-slump-16-on-loan-default-case/

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