Money & Banking

Allahabad Bank reports Rs 1,775 cr fraud by Bhushan Power & Steel

Our Bureau Kolkata | Updated on July 13, 2019 Published on July 13, 2019

Kolkata-headquartered state owned lender, Allahabad Bank, has reported a fraud of Rs 1774.82 crore by Bhushan Power & Steel to the Reserve Bank of India (RBI).

In a stock market notification, on July 13, the bank has alleged misappropriation of funds and manipulation in the books of accounts by Bhushan Power & Steel to raise money from a consortium of banks.

The lender further added that a provision of Rs 900.20 crore has already been made against the exposure.

“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 good recovery of the account,” it said in a notice to the bourses.

Allahabad Bank is the second lender after Punjab National Bank (PNB) to report a fraud by Bhushan Power & Steel. Earlier this month, PNB reported a Rs 3,800 crore fraud by the company.

 Bhushan Power & Steel defaulted on Rs 47,700 crore worth of loans in 2017 and was one of the 12 cases referred for resolution under Insolvency and Bankruptcy Code.

Published on July 13, 2019
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