Punjab & Sind Bank reports Rs238.30cr fraud in Bhushan Power case

On the basis of Forensic Audit Investigation findings and CBI filing FIR, on suo moto basis, against the company and its Directors, alleging diversion of funds from banking system, a fraud of Rs238.30cr is being reported by Bank to RBI.

Jul 18, 2019 03:07 IST India Infoline News Service

Punjab and Sind Bank
Punjab & Sind Bank said in the press note after market hours on Wednesday that it has reported a Rs238.20cr fraud to the country's central bank, relating to allegations of diversion of funds by the indebted Bhushan Power & Steel Ltd.

Based on Forensic Audit Investigation findings and CBI filing FIR, on suo moto basis, against the company and its Directors, alleging diversion of funds from the banking system, a fraud of Rs238.30cr is being reported by Bank to RBI. In the accounts of the company (BPSL), Bank has already made provisions amounting to Rs189.35cr, as per prescribed prudential norms, the company said in the press note.

It has been observed that the company has misappropriated bank funds, manipulated books of accounts to raise funds from consortium lender banks. At present, the case is at NCLT, which is in advance stage and the Bank expects a good recovery in the account, the company added.

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