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SIMBHALS - Simbhaoli Sugars News Story

₹11.7 0.6  4.9%

Last Trade - 11/05/21

Consumer Defensives
Micro Cap
Market Cap £4.66m
Enterprise Value £13.0m
Revenue £134.6m
Position in Universe 2122nd / 3109

India federal police file fraud case against Simbhaoli Sugar execs

Sun 25th February, 2018 6:39pm
By Malini Menon and Nigam Prusty 
    NEW DELHI, Feb 25 (Reuters) - India's federal police said on 
Sunday it had filed a fraud case against executives of Simbhaoli 
Sugar  SIMB.NS  for causing alleged losses of 1.09 billion 
rupees ($16.85 million) to state-run Oriental Bank of Commerce 
    The bank alleged that the sugar refiner "dishonestly and 
fraudulently diverted" a 1.48-billion-rupee loan sanctioned in 
2011 for financing cane farmers for private use, a statement 
issued by the Central Bureau of Investigation (CBI) said. 
    The case comes at a time when the Indian banking sector is 
getting to grips with its biggest banking fraud totalling $1.8 
billion, in which the No. 2 state-run lender PNB  PNBK.NS  has 
alleged that two of its employees colluded with firms linked to 
well-known jewellers Nirav Modi and his uncle, Mehul Choksi.*:nL4N1QE0AR 
    This is the second case in three days registered by the CBI 
upon complaints from the Oriental Bank of Commerce. 
    The police has registered a case against several top 
officials of Simbhaoli Sugar, including its chairman and 
managing director, chief executive and chief financial officer, 
some unknown bank officials, and other private persons. 
    In 2015, the bank declared 978.5 million rupees of the loan 
as having turned sour and reported the alleged fraud to the 
Reserve Bank of India, India's central bank. 
    On top of this, the bank also sanctioned a corporate loan of 
1.10 billion to the company in May 2015 "under multiple banking 
agreements" which turned into a bad loan 18 months later, the 
statement said. 
    Chief Executive Officer G. S. C. Rao and CFO Sanjay Tapriya 
of Simbhaoli Sugar were not immediately reachable for comment.   
($1 = 64.7000 Indian rupees) 
 (Additional reporting by Rajendra Jadhav; Writing by Malini 
Menon; Editing by William Maclean) 
 ((; +91 11 4954 8028 / +91 11 
3015 8028; Reuters Messaging: 
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