Fraud with the Uttar Pradesh Cooperative Bank

The Simbhaoli Group – which is under probe for cheating the Oriental Bank of Commerce of Rs 109.08 crore – has allegedly duped Uttar Pradesh Cooperative Bank Limited of Rs 60 crore. Interestingly, the group had NPAs worth Rs 152 crore in the cooperative bank, the bank still sanctioned another Rs.60 crore loan to one of the companies of the group. A complaint pertaining to the cooperative bank has been forwarded to the PMO.

The Central Bureau of Investigation has booked Simbhaoli Sugars, Mann, its chief executive officer Gurpal Singh, who is the son-in-law of Punjab Chief Minister Amarinder Singh, and 10 others and unknown bank officials in the OBC bank fraud case filed last month.

As per a document, the cooperative bank had sanctioned Rs 152 crore to Simbhaoli Sugars, but could not recover the money which then turned NPA in April 2017. Interestingly, the same bank sanctioned another loan of Rs 60 crore to Simbhaoli Power Private Limited this year.