CBI files case against private sugar company, officials for bank fraud
New Delhi: The CBI on Sunday registered a bank fraud cases against a Uttar Pradesh based private sugar company, its top officials along with unknown bank officials for allegedly causing loss of Rs 109 crore to Oriental Bank of Commerce, officials said.
According to Central Bureau of Investigation (CBI) officials, the Hapur-based Simbhaoli Sugars Ltd in 2011 fraudulently diverted funds received as loans for sugarcane farmers and self help groups.
CBI also conducted searches at offices of the company and residences of its officials at eight places, including one location each in Hapur and Noida, and six locations in Delhi.
"Searches are being conducted at eight premises including residences of Directors, factory, corporate office and registered office of the company in Delhi, Hapur and Noida," CBI spokesperson Abhishek Dayal told IANS.
The agency has named the company's Chairman and Managing Director, its Directors, CEO, Chief Financial Officer and unknown bank officials and other private persons, under charges of criminal conspiracy, cheating, forgery slapping sections under Prevention of Corruption Act for causing loss to the bank.
Officials said that the Bank sanctioned a loan amounting to Rs 148.60 crore in 2011 to the private company for financing individual, Joint Liability Groups, Self-Help Groups under the tie-up arrangement under the RBI Scheme to 5,762 sugarcane farmers supplying sugar produce to said private company during the period from January 25 to March 13, 2012. It has been alleged that the company has diverted funds for personal use.
According to complaint, the account turned Non Performing Asset (NPA) on March 31, 2015 and was later declared as alleged fraud by the bank to RBI on May 13, 2015 for an amount of Rs 97.85 crore.
It was further alleged that in addition to the existing NPA as on March 31, 2015, the bank, under multiple banking arrangements, had sanctioned another corporate loan of Rs 110 crore to the sugar company on January 28, 2015, to pay its outstanding loan of Rs 97.85 crore, and adjusted the total liability of Rs. 112.9 crore of said private company on June 30, 2016 by way of deposit of this new corporate loan.
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).
CBI is now investigating the matter, officials said.
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VHP warns of statewide stir in Karnataka against move to ease cattle transport law
Udupi (Karnataka) (PTI): The VHP on Saturday demanded the immediate withdrawal of a proposed amendment to the Karnataka Prevention of Slaughter and Preservation of Cattle Act, 2020, accusing the state government of weakening a law that has deterred illegal cattle transport.
The organisation's Go Raksha Wing, Karnataka South, has also announced district-level protests on December 8.
According to officials, the existing law mandates a bank guarantee for securing the release of vehicles seized for alleged illegal cattle transportation.
On December 4, the state Cabinet proposed an amendment enabling the release of such vehicles on an indemnity bond instead.
Addressing reporters in Udupi, VHP leader and Prantha Goraksha Pramukh Sunil K R, said the government's move amounted to "sympathy for cattle lifters" and claimed that it was part of broader actions "targeting Hindus".
He argued that the law in its current form is stringent and has played a crucial role in reducing incidents of illegal cattle transport and theft.
Under the Act, vehicles involved in offences can be surrendered and, upon conviction, permanently seized by authorities. "Diluting these provisions will embolden offenders," Sunil said.
The VHP leader warned that easing the process of vehicle release would not only encourage violators but also result in rising cruelty against cattle.
Sunil further claimed that the strict enforcement of the 2020 law had brought down cases of cattle-related offences significantly. Rolling back these provisions, he said, could reverse those gains and would lead to an increase in illegal transport.
He reiterated that the government must reconsider its decision and preserve the integrity of the existing law.
