After PNB, Punjab & Sind Bank detects Rs.238 cr fraud by Bhushan Power
Updated: Aug 22, 2019
Punjab National Bank (PNB) said it had reported a borrowing fraud of Rs 3805 crore in Bhushan Power's account to the Reserve Bank of India.
Punjab & Sind Bank (PSB) said on Wednesday it has reported a Rs 238 crore ($34.58 million) fraud to the country's central bank, relating to allegations of diversion of funds by the indebted Bhushan Power & Steel Ltd. Earlier this month, Punjab National Bank (PNB) said it had reported a borrowing fraud of Rs 3805 crore in Bhushan Power's account to the Reserve Bank of India (RBI).
Both these banks are among a host of financial creditors who have claimed a collective Rs 47,303 crore from Bhushan Power, which the RBI referred to a bankruptcy court in 2017.
It has been observed that the company has misappropriated bank funds, manipulated books of accounts to raise funds from the consortium of lenders, New-Delhi based PSB said in a statement.
The case is currently at the country's company law tribunal and the bank expects good recovery, it said. State-owned PSB also said it has made provisions amounting to Rs 189 crore relating to its exposure to the Bhushan Power account.
(As published on 17th July, 2019 by Business Standard)