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The CBI on Thursday questioned Gurpal Singh, son-in-law of Punjab Chief Minister Amrinder Singh, in connection with the alleged bank fraud case of Rs 978 million by Simbhaoli Sugars Limited.
The CBI had registered a case against the sugar mill, its Chairman Gurmit Singh Mann, Deputy Managing Director Gurpal Singh 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 company's Chief Executive Officer G S C Rao, CFO Sanjay Tapriya, Executive Director Gursimran Kaur Mann and five non-executive directors have also been 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 978 million which was declared fraud in 2015 and another corporate loan of Rs 1.1 billion 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 old Rs 500 notes was announced, according to the CBI FIR.
The bank was allegedly cheated to the tune of Rs 978 million, but the loss incurred by the bank is Rs 1.09 billion, 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 1.48 billion 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.
According to a memorandum of understanding, out of the price to be paid by Simbhaoli Sugars Limited to the farmers, loan liabilities were to be adjusted and the remaining amount was to be paid by the company to the growers, according to the FIR.
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 978 million.
OBC alleged that in addition to the existing NPA, the bank, under multiple banking arrangements, sanctioned another corporate loan of Rs 1.1 billion to the company on January 28, 2015 to pay its outstanding loan of Rs 978 million.
The bank adjusted the total liability of Rs 1.12 billion towards the company through deposit of the new corporate loan.
"The corporate loan, too, turned NPA on November 29, 2016," the CBI said.