The 2018 Simbhaoli Sugar Mill fraud case, a notorious financial scam that had mostly gone from public memory, has gained new attention in the wake of the purported discovery of a sizable cash hoard at the home of Delhi High Court Justice Yashwant Varma. After the money was purportedly retrieved after a fire at his official apartment, Justice Varma, who had a perfect record during his 22-year career, is now under investigation.
Questions concerning his prior financial transactions have been raised by this revelation, especially in relation to his connection with Simbhaoli Sugars Limited, a business that is alleged to have planned a multi-crore banking scam.
Regarding the Simbhaoli Sugar Mill Fraud Case in 2018
The matter began in February 2018 when the Oriental Bank of Commerce filed a complaint, prompting the CBI to launch an inquiry into Simbhaoli Sugars. The bank claimed that the business had stolen a loan of Rs 97.85 crore meant for farmers and used the money for other things instead. The business had already been reported to the Reserve Bank of India (RBI) in May 2015 as a “suspected fraud” case.
According to India Today, the CBI filed a formal charge against 12 people after receiving the complaint, designating Yashwant Varma as the tenth accused in his capacity as a non-executive director of the business. Notwithstanding the seriousness of the accusations, the case stalled, and Varma and the others involved were not prosecuted.
A judge ordered the CBI to continue its halted investigation into the case in February 2024. However, the report claims that the Supreme Court reversed this order before any further action could be taken, which resulted in the CBI’s Preliminary Enquiry (PE) being immediately closed. Any investigation into the financial issues surrounding Simbhaoli Sugars and its directors was essentially terminated by this.
Concerns regarding Justice Varma’s financial background and his purported involvement in the Simbhaoli Sugars case have increased after significant sums of money were recently found in his home.