PNB declares Simbhaoli Sugars loan account as fraud worth Rs 226 crore
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Punjab National Bank has classified Simbhaoli Sugars loan account as fraud involving Rs 226.44 crore, citing misappropriation of funds, criminal breach of trust and cheating by concealment of facts. The classification relates to farmer loans disbursed in 2011-2013 period. The company is already under insolvency resolution since July 2024 with an Interim Resolution Professional managing affairs. PNB will now report the classification to RBI. The company says the classification will not materially impact it as IBC protections apply once a resolution plan is approved. A CBI complaint was already filed earlier and PMLA proceedings are currently underway.
Negative headline, but company says no material impact expected due to ongoing insolvency and IBC protections for pre-CIRP liabilities.