Punjab CM's son-in-law named in CBI FIR against Simbhaoli Sugars in bank loan fraud case

Punjab Chief Minister Amarinder Singh's son-in-law is among those booked by the Central Bureau of Investigation (CBI) in connection with an alleged bank loan fraud of Rs 97.85 crore by Simbhaoli Sugars Ltd.

The CBI has named Simbhaoli Sugars Limited's Deputy Managing Director Gurpal Singh, who is the son-in-law of Punjab CM, and 12 others in the FIR.  

The company's Chairman Gurmit Singh Mann, Chief Executive Officer G S C Rao, CFO Sanjay Tapriya, Executive Director Gursimran Kaur Mann and five non-executive directors have also been booked by the agency.

Commenting on the naming of Punjab CM's kin in the FIR, Shiromani Akali Dal (SAD) leader and Union Minister Harsimrat Kaur Badal said the "family is embroiled in scams."

"What do you expect from a CM who himself is embroiled in having black money abroad? The whole family is embroiled in scams. It isn't surprising. It's old habit of Congress," Badal was quoted as saying by ANI. 

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, CBI spokesperson Abhishek Dayal said.

The probe focuses on two loans -- Rs 97.85 crore which was declared fraud in 2015 and another corporate loan of Rs 110 crore which was used to repay the previous loan.

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

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.

The lender, Oriental Bank of Commerce, 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.

(With PTI inputs)