SREI Equipment Finance Auditor Reports Rs13,110 Crore Fraudulent Transactions
IANS 14 November 2022
SREI Equipment Finance Ltd (SREI EFL) has reported alleged fraudulent transactions amounting to Rs13,110 crore, during the erstwhile management of the company, run by Hemant Kanoria and Sunil Kanoria.
In the unaudited financial results of the company for the quarter ending 30th September, the transaction auditor has pegged the alleged value of the fraudulent transactions at Rs13,110 crore.
Before this, the company had reported fraudulent transactions of around Rs5,100 crore, through two separate disclosures in the stock exchange.
The administrator of the bankrupt company, which is going through national company law tribunal (NCLT)-driven resolution process, has appointed BDO India LLP as the transaction auditor.
In the latest disclosure, the company has said that, "transaction auditor has indicated that there are transactions amounting to Rs13,110 crore which are fraudulent in nature under section 66 of the IBC, including transactions amounting to Rs1,283 crore determined as undervalued transactions."
The administrator has filed applications before the Kolkata bench of NCLT for adjudication.
In another disclosure, the company has informed that the committee of creditors (CoC) has extended the last date for the submission of resolution plan by the prospective resolution applicants to 25th November, from 15th November.
Last week, NCLT had approved the extension of deadline for the completion of the resolution process to 5 January 2023.
Insolvency-bound SREI EFL, along with its promoter Srei Infrastructure Finance, are being run by an administrator, which is looking into the day-to-today affairs of the companies since October 2021.
After DHFL, SREI was the second financial services group that was referred by the Reserve Bank of India (RBI) for NCLT-driven resolution process, by superseding the boards of two Srei companies in October 2021.
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1 year ago
Shameful, they cheat thousands of middle class retired NCD holders of their savings and have no remorse. Shame, Shame, Shame.
1 year ago
Both Hemant Kanoria and Sunil Kanoria (brothers) promoters of both the companies are proved to be great frauds in the financial world. Both of them randomly siphoned funds taken by way of equity share and NCDs from public for their family needs and made fraudulent transactions to their other companies.
Both of them are personally liable to return entire money to the public. Both of them must be put behind the bar and CBI/ED probes started urgently against them/their other companies to recover money. They should also be barred from going abroad. I have lost huge money in the company by way of SEBI approved NCDs.
The companies earlier also of their own got rehabilitation scheme by the Kolkata NCLT without making any references to the banks/institutions and NCDs holders. It was an exercise to cheat all.
1 year ago
One hopes as next steps that the Kanoria promoter family will be arrested and punished.
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