CBI questions Simbhaoli Sugars Ltd MD in bank fraud case

IMA Ponzi scheme case: A multi-crore scheme run by Karnataka-based I-Monetary Advisory (IMA) and its group entities allegedly duped lakhs of people by promising higher returns using Islamic ways of investment. The Central Bureau of Investigation (CBI) is currently investigating the case and has filed at least three FIRs. (File image of the CBI headquarters)

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26 Aug, 2025 12:21

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The CBI questioned Managing Director of Simbhaoli Sugars Limited Gursimran Kaur Mann in connection with the alleged bank fraud of Rs 97.85 crore, officials said.

The agency had called Mann, who was the Executive Director during the period when the alleged fraud was committed, to its headquarters here today where she was grilled on various aspects of the bank loan and alleged default causing a loss of Rs 110 crore to Oriental Bank of Commerce, they said.

The CBI had registered a case against the sugar mill, its chairman Gurmit Singh Mann, the then (in 2015) Deputy Managing Director Gurpal Singh (now director) and others in connection with the alleged bank loan fraud case.

Simbhaoli Sugars Limited is one of the largest sugar mills in the country. The then CFO Sanjay Tapriya, Gursimran Kaur Mann and five non-executive directors were also booked by the agency.

The CBI had 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.

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 Non Performing Asset (NPA) on November 29, 2016, nearly 20 days after scrapping of Rs 1,000 and 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 was 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. According to the FIR, OBC sanctioned a loan of Rs 148.60 crore to the company in 2011.

The loan was sanctioned for financing 5,762 sugarcane farmers based on a tie-up agreement under an RBI scheme for supplying sugar produce to the company from January 25, 2012 to March 13, 2012.

The loan money was “dishonestly and fraudulently diverted by the company for its own needs”, the CBI alleged. The account turned NPA on March 31, 2015 and was declared alleged fraud by the bank to RBI on May 13, 2015 for an amount of Rs 97.85 crore.

OBC alleged that in addition to the existing NPA, the bank, under multiple banking arrangements, sanctioned another corporate loan of Rs 110 crore to the company on January 28, 2015 to pay its outstanding loan of Rs 97.85 crore.