New Delhi: The Central Bureau of Investigation (CBI) on Thursday interrogated Punjab chief minister Amarinder Singh’s son-in-law, Gurpal Singh, in connection with Simbhaoli Sugar loan default case.
The Enforcement Directorate (ED) has registered a money laundering case against Simbhaoli Sugars Ltd and its executives in connection with an alleged bank loan fraud of Rs97.85 crore, officials said on Thursday. A case was registered by the ED under the Prevention of Money Laundering Act (PMLA)and the searches were conducted by it in Hapur and Noida on Wednesday.
“Some documents have been recovered and seized by the sleuths during the raids. Financial details about the company and its officials has also been obtained by the ED from various banks," a senior official said.
The ED filed a criminal case under the PMLA, based on a CBI FIR filed early this week in this instance. It will investigate if the allegedly defrauded bank funds were laundered and proceeds of crime were subsequently used by the accused to create illegal assets and black money.
CBI has registered a case against Simbhaoli Sugars, its chairman Gurmit Singh Mann, deputy managing director Gurpal Singh and others.
Simbhaoli Sugars is one of the largest sugar mills in the country. The company’s chief executive G.S.C. Rao, chief finance officer Sanjay Tapriya, executive director Gursimran Kaur Mann and five non-executive directors have also been booked by CBI.
Gurpal Singh is the son-in-law of Punjab chief minister Amarinder Singh. The chief minister has denied any wrongdoing on the part of his son-in-law.
CBI and the ED probe focuses on two loans—Rs 97.85 crore which was declared fraud in 2015 and another corporate loan of Rs110 crore which was used to repay the previous loan. The second loan was declared NPA on 29 November 2016, nearly 20 days after the demonetisation was announced, according to the CBI FIR.
The bank was allegedly cheated to the tune of Rs97.85 crore, but the loss incurred by the bank is Rs109.08 crore, the FIR read.
The lender, Oriental Bank of Commerce, complained to CBI on 17 November 2017, but the agency registered a case of criminal conspiracy and cheating under the Prevention of Corruption Act on 22 February.