Money & Banking

Lakshmi Vilas Bank shares hit lower circuit over cheating allegations against directors

PTI New Delhi | Updated on September 27, 2019 Published on September 27, 2019

Shares of Lakshmi Vilas Bank tumbled 5 per cent on Friday after an FIR was registered against directors of the company over allegations of various offences including cheating.

The scrip dropped 4.94 per cent to Rs 36.55 -- its lowest trading permissible limit for the day -- on the BSE. On the NSE, it fell 4.94 per cent to Rs 36.50 -- its lower price band.

“The Economic Offences Wing, Delhi, has registered a First Information Report (FIR) dated 23/09/2019 under ‘complaint for offences of cheating, criminal breach of trust by banker, criminal misappropriation and criminal conspiracy under the Indian Penal Code, 1860’ upon the directors of board LVB, Director LVB, Connaught Place, New Delhi, amongst others,” the company said in a BSE filing on Thursday.

The filing further added that the FIR is based on a complaint filed by M/s Religare Finvest Limited (RFL) pertaining to adjustment of their deposits to the dues of M/s RHC Holding Pvt Ltd and M/s Ranchem Pvt Ltd. The bank is considering appropriate legal measures to counter the same, it said in the filing.

Meanwhile, in a filing to BSE on Friday, the company said the bank is committed to cooperating with the investigating agencies and regulatory authorities apparently in order to bring out the malicious attempts of RFL to mislead the public to cover-up massive fraud indulged by their own promoters/ employees/ group companies.

Published on September 27, 2019
  1. Comments will be moderated by The Hindu Business Line editorial team.
  2. Comments that are abusive, personal, incendiary or irrelevant cannot be published.
  3. Please write complete sentences. Do not type comments in all capital letters, or in all lower case letters, or using abbreviated text. (example: u cannot substitute for you, d is not 'the', n is not 'and').
  4. We may remove hyperlinks within comments.
  5. Please use a genuine email ID and provide your name, to avoid rejection.