The Supreme Court on Monday set aside a Allahabad High Court’s decision that ordered a CBI probe into the sanctioning of loans by a SBI-led consortium of banks to Simbhaoli Sugars Ltd (SSL).
Simbhaoli Sugars today informed the exchanges that SSL had approached the Supreme Court, challenging the High Court’s decision to order the CBI to investigate the loan transactions facilitated by its consortium of banks led by the State Bank of India (SBI). The Supreme Court observed that “the High Court was in error in directing an investigation by the CBI. Such a direction was not warranted, particularly, bearing in mind that no such relief was sought or formed the subject matter of the proceedings under Article 226 of the Constitution.”
The Company had filed the Special leave petition before the Supreme Court pertaining to quashing the order of Hon’ble Allahabad High Court dated December 12, 2023.
In its plea, SSL demonstrated its stringent adherence to financial oversight, highlighting regular forensic and physical stock audits conducted by lenders. The company pointed out that the High Court had overlooked the fact that multiple forensic audit reports over the years had found no case of fraud or wilful default, and that the company’s banking transactions had adhered strictly to the prevailing RBI guidelines.
