Ex-Srei promoters committed over 2,400cr loan fraud: PNB

NEW DELHI: Four years after RBI ordered insolvency action against Srei Infrastructure Finance and Srei Equipment Finance, Punjab National Bank on Friday reported a loan fraud of Rs 2,434 crore committed by the erstwhile promoters of the two non-bank finance companies to the regulator.

It reported a fraud of Rs 1,241 crore in the case of Srei Equipment Finance and Rs 1,193 crore by the ousted promoters of Srei Infrastructure Finance and said that provision has been made for the entire amount.

The move by PNB, which may be followed by similar action by other lenders, opens the doors for investigative agencies such as Central Bureau of Investigation and the Enforcement Directorate to step in to probe how the frauds took place. In several insolvency cases, the agencies have stepped in to investigate if there was misuse of bank funds.

In Oct 2021, RBI had superseded boards of the two companies, controlled by Kolkata-based Kanorias, citing governance concerns and defaults. The two Srei entities with financial debt amounting to Rs 32,700 crore went through resolution under Insolvency and Bankruptcy Code and the new promoter National Asset Reconstruction Company acquired them in December 2023.


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