CBI files case against private sugar company, officials for bank fraud

by Jared Lewis February 26, 2018, 1:48
CBI files case against private sugar company, officials for bank fraud

The CBI on Friday registered a case against Delhi-based diamond jewellery exporting company Dwarka Das Seth International Pvt Ltd for the alleged defrauding OBC of Rs389.85 crore.

Search was being conducted on Sunday at eight premises including the residence of directors, factory, corporate office and the registered offices of the company in Delhi, Hapur, and Noida. In its defence, the CBI on Saturday told TOI that the directors of Dwarka Das Seth International had fled the country as early as 2014. Singla's company Aashirwad Chain Co. had obtained a loan of Rs 9.5 crore from the bank.Case had filed against him for securing a loan on the false representation by forging documents and its criminal misappropriation and use. Acting on complaints by three different banks, the investigative agency has registered three cases of financial fraud within a week against a jeweller, a businessman, and a public servant.

The second loan was declared NPA on November 29, 2016, almost 20 days after scrapping of Rs 1,000 and old Rs 500 notes was announced, according to the CBI FIR.

Those named as accused are Ghaziabad-based Simbhaoli Sugar Limited, chairman-cum-managing director Gurmit Singh Mann, the then deputy managing director Gurpal Singh, chief executive officer G.S.C. Rao, chief financial officer Sanjay Tapriya and executive director-commercial (now managing director) Gursimran Kaur.

According to a report, the Uttar Pradesh-based sugar distillery had recently reported a net loss of Rs 74.98 crore in the last quarter of 2017, which was followed by a loss of Rs 19.09 crore in the quarter that ended in December 2016.

It was alleged that the company had availed credit facilities from the bank;s Greater Kailash-II branch since 2007 by getting Foreign Letters of Credit.

"The corporate loan, too, turned NPA on November 29, 2016", Dayal said.

According to the CBI, Simbhaoli Sugars had approached the Oriental Bank of Commerce in 2011 seeking around Rs 148 crore in loan to finance almost 5,200 sugarcane farmers.

In February, the banking sector was rocked by major banking frauds - including Rs 11,300 crore by diamantaire Nirav Modi and Rs 3,695 crore by Rotomac owner Vikram Kothari. They first started availing this facility in 2007 and bills were regularly realized before further bills were discounted. The loans turned into non-performing assets (NPAs) way back in 2014, but the bank approached the agency on August 16 previous year, after the company had folded up and Seth fled the country.

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