Simbhaoli Sugars shares crack 20% on loan default case

Shares of Simbhaoli Sugars plunged 20 per cent today as CBI registered a case against the company, its chairman Gurmit Singh Mann, deputy MD Gurpal Singh and others in connection with an alleged bank loan fraud of Rs 97.85 crore.

The stock tanked 19.88 per cent to Rs 13.50 - its 52-week low - on BSE.

At NSE, shares of the company plummeted 19.94 per cent to touch its one-year low of Rs 13.45.
 

Simbhaoli Sugars is one of the largest sugar mills in the country.
 

BSE has sought clarification from the company on this issue.

The CBI yesterday 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, CBI spokesperson Abhishek Dayal had said.

The lender, Oriental Bank of Commerce (OBC), complained to the CBI on November 17, 2017, but the agency registered a case of criminal conspiracy and cheating under the

Prevention of Corruption Act on February 22.

Shares of OBC also plunged 12.52 per cent to Rs 92.50 - its one-year low - on BSE.