New Delhi, Dec. 27 (IANS) – Punjab National Bank (PNB) has announced that it has traced a Rs 2,434 crore loan‑fraud scheme tied to the former promoters of Srei Equipment Finance and Srei Infrastructure Finance.
In a late‑evening exchange filing, the bank stated:
“Pursuant to the applicable provisions of SEBI (LODFR) Regulations, 2015 and the Bank’s Policy for determining materiality of events/information required to be reported to the Stock Exchanges, it is hereby informed that the bank has reported borrowal fraud to RBI against the erstwhile promoters of Srei Equipment Finance and Srei Infrastructure Finance”.
According to PNB, the total fraudulent borrowing amounts to Rs 1,240.94 crore from Srei Equipment Finance and Rs 1,193.06 crore from Srei Infrastructure Finance. The lender has already set aside 100 percent of these amounts as provisions.
The fraud determination stems from a forensic audit that highlighted irregularities such as loans to affiliated parties and potential evergreening of debts. Srei founder Hemant Kanoria has challenged the audit findings, noting that the issue remains subjudice.
Other banks—including Punjab & Sind Bank, Bank of Baroda and Union Bank of India—have previously identified loan frauds linked to Srei companies.
The Srei group has been under an insolvency resolution process since 2021. After the Reserve Bank of India sent the group to the National Company Law Tribunal (NCLT) in October 2021 due to governance concerns and defaults, the NCLT approved a resolution plan submitted by the National Asset Reconstruction Company (NARCL) in 2023. In February 2023, NARCL emerged successful in its bid to acquire Srei Infrastructure Finance Limited and Srei Equipment Finance Limited, which together owed lenders Rs 32,750 crore. NARCL received NCLT approval in August 2023 and completed the acquisition by January 2024.
—IANS
Stay informed on all the latest news, real-time breaking news updates, and follow all the important headlines in world News on Latest NewsX. Follow us on social media Facebook, Twitter(X), Gettr and subscribe our Youtube Channel.
