Simbhaoli scam case: CBI questions Punjab CM's son-in-law Gurpal Singh

NEW DELHI: The Central Bureau of Investigation has questioned Gurpal Singh, who is the son-in-law of Punjab chief minister Captain Amarinder Singh, in its probe related to alleged fraud worth Rs 109 crore committed by Simbhaoli Sugars Limited with the Oriental Bank of Commerce in 2011.
Sources said that Gurpal Singh, who is a director in Simbhaoli Sugars Limited, was questioned on Wednesday alongwith chief executive officer – GSC Rao of Simbhaoli Sugars at the CBI headquarters.

In its FIR registered last week, CBI has named Simbhaoli’s chairman and managing director Gurmit Singh Mann, Gurpal Singh, Rao and seven others.

Meanwhile, Enforcement Directorate also filed a money laundering case against the accused persons on the basis of CBI FIR.

After registering the case under Prevention of Money Laundering Act (PMLA), ED teams carried out searches in Hapur and Noida.

"Some documents have been recovered and seized by the sleuths during the raids. Financial details about the company and its officials have also been obtained by the ED from various banks," said an officer.

The probe by the CBI and the ED focuses on two loans -- Rs 97.85 crore which was declared fraud in 2015 and another corporate loan of Rs 110 crore 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 97.85 crore, but the loss incurred by the bank is Rs 109.08 crore, the CBI FIR stated.

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.