OBC fraud: Faced with CBI probe, Simbhaoli Sugars says will repay loan in 'due course of time'

New Delhi: Faced with a Central Bureau of Investigation (CBI) probe for alleged loan fraud, the Simbhaoli Sugars on Monday said it is committed to clear its outstanding dues to the Oriental Bank of Commerce in "due course of time" in consultation with all the lenders.

The CBI has registered a case against the company, its chairman Gurmit Singh Mann, deputy MD Gurpal Singh and others in connection with the alleged bank loan fraud of Rs 97.85 crore.

File image of Simbhaoli Sugars Limited chairman Gurmit Singh Mann. Source: Company website

File image of Simbhaoli Sugars Limited chairman Gurmit Singh Mann. Source: Company website

In a filing to the stock exchanges close to midnight on Monday, the company said it had taken finance from banks, for which it has been regular in repayments but for periodical adverse cycles in sugar industry.

Recently, the Oriental Bank of Commerce (OBC) -- one of the banks in its consortium -- has filed a fraud monitoring report against the company and referred it to the investigation agencies, it added.

"In this regard, the company and its management are in process for submitting requisite clarifications and details to the investigating agencies and are fully committed to co-operate with the investigation. "The management is committed to clear all of its outstanding dues with the OBC in due course of time, in the joint consultation of all the lenders," the filing said.


Updated Date: Feb 27, 2018 07:52 AM

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