OBC fraud: Simbhaoli Sugars says will honour payment commitments

OBC had sanctioned a loan amounting to Rs 1.48 billion in 2011 to the company for financing individual/joint liability groups, self-help groups and cane farmers in a tie-up under RBI scheme

With the Central Bureau of Investigation (CBI) registering a case against Simbhaoli on Sunday, on a complaint from Oriental Bank of Commerce (OBC) on fraudulent diversion of over Rs 1 billion, the Uttar Pradesh government is keeping its eyes open. 

“We are aware of the Simbhaoli development and are keeping an eye on the emerging situation. Even otherwise, we monitor sugarcane payments,” UP cane commissioner Sanjay Bhoosreddy told Business Standard.

He said the state government had no direct link with the CBI case, adding that if promoters and other senior officials are arrested in such cases, mills’ operations could