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Indian authorities file case against Oriental Bank of Commerce defaulter


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Indian authorities file case against Oriental Bank of Commerce defaulter

India's Central Bureau of Investigation lodged a case against Simbhaoli Sugars Ltd., its top executives, directors and unknown officials, for causing an alleged loss of 1.09 billion rupees to Oriental Bank of Commerce.

The bureau's investigation involves two loans sanctioned by the Indian bank to the private sugar company — one amounting to 1.49 billion rupees and the other amounting to 1.10 billion rupees — that were recorded as nonperforming assets in 2015 and 2016, respectively.

The first loan was declared an alleged fraud amounting to 978.5 million rupees in May 2015 after the lender found that Simbhaoli Sugars diverted the loan for its own needs.

The bank extended another corporate loan to the company in January 2015 to repay its debt of 978.5 million rupees and adjusted the company's total liability of 1.13 billion rupees. The second loan turned sour in November 2016.

The bureau is conducting searches at eight premises, including residences of directors, factory, corporate office and registered office of Simbhaoli Sugars in Delhi, Hapur and Noida in India.

The investigation is ongoing, according to a Feb. 25 release.

As of Feb. 23, US$1 was equivalent to 64.90 Indian rupees.