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Last Updated : Jul 13, 2019 05:27 PM IST | Source: Moneycontrol.com

Allahabad Bank reports Rs 1,774 crore fraud by Bhushan Power and Steel

Bhushan Power & Steel defaulted on Rs 47,700 crore worth of loans in 2017 and was one of the 12 cases referred for resolution under Insolvency and Bankruptcy Code.

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Allahabad Bank has reported fraud of Rs 1774.82 crore by Bhushan Power & Steel to the Reserve Bank of India (RBI), the Kolkata-based state-owned lender said in an exchange filing on July 13.

"It has been observed that the company has misappropriated bank funds,

manipulated books of accounts to raise funds from consortium lender banks," the bank said. The statement also added that the bank has already made provisions of Rs 900.2 crore against the exposure.

Earlier this month, Punjab National Bank (PNB) reported a Rs 3,800 crore fraud by Bhushan Power & Steel, which is in advanced stages of resolution at the National Company Law Tribunal. Allahabad Bank said that it expects "good recovery" in the account.

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Bhushan Power & Steel defaulted on Rs 47,700 crore worth of loans in 2017 and was one of the 12 cases referred for resolution under Insolvency and Bankruptcy Code. The company is also facing probe by the Serious Fraud Investigation Office (SFIO).

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First Published on Jul 13, 2019 05:27 pm
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