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Haryana: Naraingarh Sugar Mill MD arrested in Rs 100 crore fraud case

AMBALA: The economic offence wing (EOW) of Ambala police arrested the managing director (MD) of Naraingarh Sugar Mill Limited (NSML) in the night on Sunday, in connection with a case of siphoning off funds meant for sugar mill account and not repaying the government bank loan.
Ambala superintendent of police (SP) Jashandeep Singh Randhawa said the accused has been identified as Rahul Anand of Panchkula, presently residing at Swasthya Vihar, New Delhi. He said Rahul was produced in the district court on Monday, which granted his eight-day police remand to EOW of Ambala police.
On the complaint of Ashok Verma, general manager (GM), Ambala Central Co-operative Bank Limited, Ambala, a case was registered against Rahul Anand, MD of NSML, Banondi village in Shahzadpur under Section 120-B (criminal conspiracy), 406 (criminal breach of trust), 409 (criminal breach of trust by public servant), 420 (cheating), 468 (forgery for purpose of cheating) and 471 (using as genuine a forged document) of the Indian Penal Code (IPC) at Shahzadpur police station on December 21, 2021.
As per the first information report (FIR), a tripartite agreement dated November 13, 2015, and an agreement deed dated September 19, 2019, was executed between NSML and Ambala Central Co-operative Bank.
“The loan amount of Rs 34.10 crore was disbursed (to NSML) through Ambala Central Co-operative Bank, for crushing season 2014-15, Rs 11.11 crore in the season of 2015-16 and Rs 60 crore in the season of 2018-19, for timely clearance of cane dues of concerned farmers. At present total loan i.e. principle amount of Rs 98.65 crore and interest amount of Rs 25.16 crore (as of September 30, 2021) is pending against NSML,” said the bank GM in his complaint.
The FIR said the Haryana state government deputed M/s Maheshwari and Company, Chartered Accountants, Mumbai to conduct a forensic audit of NSML for the time period from April 1, 2014, to April 30, 2020. The finance department, Haryana also constituted an audit team to conduct an audit of said sugar mill under the guidance of the director, local audit, and technical guidance from principal accountant general (audit), Haryana, Chandigarh vide its order dated May 18, 2021.
The FIR says that during the audit, it has come to light that accused Rahul Anand siphoned off the funds meant for NSML to either personal accounts or through the known parties. Accused made advance payments for purchases whereas his company did not have the sufficient fund to repay the loan, interest and farmers’ payment.
The audit found that the directors of NSML hatched a criminal conspiracy in connivance with Rahul Anand by taking loan worth crores and siphoning off the money of sugar mill to persons/firms related to them instead of the repayment of loan to the state government through the bank.
The FIR also highlighted that in the year 2014-15, NSML management had withdrawn cash amounting to Rs 77.50 crore for payment of sugarcane farmers from the account of the mill but cane payment was made only Rs 63.37 crore. Similarly, in the year 2015-16, Rs 50.87 were withdrawn but payment of Rs 42.02 was made to the sugarcane farmers.
Naraingarh sub-division magistrate (SDM) Neeraj said, “Accused Rahul produced sugar through NSML and sold it to his known parties, for example, his own firm Rahul Sales Limited, and many others firms of his family members and knowns. He took the sugar payment in cash and did not deposit it in the sugar mill account. In this way, he siphoned off the money to his pocket in place of depositing it to the sugar mill. Several other ambiguities have been found in the management through which they siphoned off the fund. The total amount is more than Rs 100 crore.”

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