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OBC bank fraud: Facing probe, Simbhaoli Sugars says committed to clear dues

Oriental Bank of Commerce has filed a fraud monitoring report against Simbhaoli Sugars

Oriental Bank of Commerce

Dwarka Das Seth availed various credit facilities from the bank between 2007 and 2012 that rose to Rs 3.9 billion in the period.

Press Trust of India New Delhi
Faced with a 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 978 million (Rs 97.85 crore).

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.

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First Published: Feb 27 2018 | 6:55 AM IST

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