PNB reports Rs 3,805 cr fraud by Bhushan Power & Steel
Another fraud, this time amounting to Rs 3,805.15 crore has been reported at the state-run Punjab National Bank (PNB), this time by the now-insolvent Bhushan Power and Steel Ltd (BPSL).
 
In February 2018, the Rs 13,500-crore scam involving diamantaires Nirav Modi and Mehul Choksi had come to light at the PNB.
 
In a regulatory filing on Saturday, PNB said that BPSL had misappropriated funds and manipulated books of accounts to raise funds from consortium lender banks.
 
"On the basis of forensic audit investigation findings and the CBI filing a suo motu FIR against the company and its directors alleging diversion of funds from banking system, a fraud of Rs 3,805.15 core is being reported by bank to the RBI (Reserve Bank of India)," said the statement.
 
The PNB noted that it has already made provisions amounting to Rs 1,932.47 crore in its company accounts, as per the prescribed prudential norms.
 
The Rs 3,805.15-crore in the NPA account of Bhushan Power & Steel Ltd, included domestic exposure of Rs 3,191.51 crore at the bank's large Corporate branch at Chandigarh, overseas exposure of $49.71 million (around Rs 345.74 crore) at its Dubai branch and $38.51 million (around Rs 267.90 crore) at the Hong Kong branch, PNB said.
 
It is one of the first 12 accounts identified by the RBI for insolvency proceedings. 
 
"At present, the case is in advance stage at the National Company Law Tribunal (NCLT) and the bank expects good recovery in the account," PNB said.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.
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COMMENTS

Ramamohanrao gedela

6 days ago

There

Ramesh Poapt

1 week ago

once upon a time, it was the best strict/pure bank...
of Lalaji.

DRT orders Nirav Modi to pay Rs 7,200 cr to PNB, others
Giving relief to the Punjab National Bank, the Debt Recovery Tribunal (DRT), Pune has ordered absconding diamantaire and his group companies to pay Rs 7,200 crore to the PNB and others with interest, official sources said here on Saturday.
 
The DRT's final order came on a plea filed by the PNB in July 2018 seeking recovery of its dues of Rs 7,000 crores from Modi.
 
A consortium of banks, which had also lent Rs 200 crore to the diamantaire, subsequently filed a separate application.
 
After the DRT's order, the PNB's recovery officer can initiate proceedings to attach Modi's properties, if needed, though most of his assets are already attached by the Enforcement Directorate (ED).
 
The hearing took place in Pune where the DRT Tribunal presiding officer Deepak Thakker, who holds additional charge of Mumbai, passed the order.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.
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2% TDS for cash withdrawals above Rs 1 crore proposed
In a bid to promote digital payments and curb black money, Union Finance Minister Nirmala Sitharaman on Friday proposed tax deduction at source (TDS) of two per cent on cash withdrawals exceeding Rs 1 crore in a year from a bank account.
 
"Our Government has taken a number of initiatives in the recent past for the promotion of digital payments and less cash economy," Sitharaman said while presenting her first Union Budget.
 
The Finance Minister also proposed that business establishments with an annual turnover of more than Rs 50 crore shall offer low cost digital modes of payment to their customers and no charges or Merchant Discount Rate (MDR) shall be imposed on customers as well as merchants. 
 
"RBI and banks will absorb these costs from the savings that will accrue to them on account of handling less cash as people move to these digital modes of payment," Sitharaman said.
 
"Necessary amendments are being made in the Income Tax Act and the Payments and Settlement Systems Act, 2007 to give effect to these provisions," she added.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.
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COMMENTS

A BANERJEE

1 week ago

I wonder at the level of knowledge of the officer who piloted the file, and the information at his/her possession, negating the fact that the rich and powerful do not spend in cash withdrawn from the bank--but with their own unaccounted cash generated through the bogus identities of non-existent persons and various other similar modus operandi.

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