New Delhi, December 27 (IANS). Punjab National Bank (PNB) has announced a loan fraud of Rs 2,434 crore allegedly committed by a former promoter of Srei Equipment Finance and Srei Infrastructure Finance. This information was given by the government bank in the exchange filing.
In an exchange filing, PNB said that out of the Rs 2,434 crore loan fraud, Rs 1,240.94 crore was related to Srei Equipment Finance and the remaining Rs 1,193.06 crore was related to Srei Infrastructure Finance.
The public sector bank said that it has made 100 percent provision for these loans. These two accounts have been declared fraud on the basis of forensic audit report, which has pointed out irregularities like granting of loans to related parties and possible revival of loans.
However, Srei Group has challenged the forensic audit report as the basis for fraud classification, saying the matter is still sub judice.
Other banks like Punjab & Sind Bank, Bank of Baroda and Union Bank of India have already declared loan accounts linked to Srei companies as fraud.
Srei Group has been going through the insolvency resolution process since 2021, and the National Company Law Tribunal (NCLT) has approved the resolution plan submitted by the National Asset Reconstruction Company in 2023.
In October 2021, the Reserve Bank of India had referred Shrey Group to the NCLT after it found governance problems and lapses. Also, the regulator had dissolved the boards of Srei Infrastructure Finance and Srei Equipment Finance.
In February 2023, NRCL emerged as the successful bidder for SIFL and SEFL, which owed a total of Rs 32,750 crore to lenders.
NRCL won the bid in February 2023, received approval from NCLT in August 2023 and finalized the acquisition by January 2024.
–IANS
abs/