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State News

Feb 25, 2018
9:10PM

CBI registers Rs 109 crore loan default case against Ghaziabad's sugar company

CBI registered case on complaint from Oriental Bank of Commerce against a private Sugar Company based at Simbhaoli, Ghaziabad in Uttar Pradesh for causing loss of Rs. 109 crore to the Bank. 

Search operations are being conducted today at eight premises including residences of directors, factory, corporate office and registered office of the company in Delhi, Hapur and Noida. Investigation is continuing. 

It was alleged that the Oriental Bank of Commerce sanctioned a loan amounting to Rs. 148.60 crore in the year 2011 for this sugar company. 

The loan was sanctioned for financing sugarcane farmers in 2012, which was dishonestly and fraudulently diverted by company for its own needs. 

The account turned NPA in 2015 and was later declared as alleged fraud by the bank.

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