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Allahabad Bank defrauded of Rs 1,775 cr by Bhushan Power & Steel

  •   Sat, Jul 13 2019 09:15:44 PM

Mumbai, Jul 13 (IANS): After Punjab National Bank, Allahabad Bank on Saturday said that it has been defrauded by Bhushan Power & Steel Ltd (BPSL) to the tune of Rs 1,774.82 crore.

The bank said in a regulatory filing that "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 by the Bank's borrower, namely Bhushan Power & Steel Ltd (BPSL), a fraud of Rs 1,774.82 crore has been reported by the Bank to the Reserve Bank of India".

The state-run bank said that it has already made provisions amounting to Rs 900.20 crore against the exposure in BPSL.

"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 the NCLT which is in advance stage and the Bank expects good recovery in the account," the bank added.

The Allahabad Bank fraud has come to light within a week of another public sector bank reporting that it has been cheated by Bhushan Power. Last week, Punjab Nation Bank reported another fraud worth Rs 3,805.15 crore by Bhushan Power & Steel Ltd to the RBI.
  

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  • mohan, Mangalore

    Sun, Jul 14 2019

    Almost all bank managers and seniors are working on commision basis from the load defrauders.....that's why Indian banks are suffering

    DisAgree Agree Reply Report Abuse

  • Jossey Saldanha, Mumbai

    Sun, Jul 14 2019

    Do we have Bank Managers or Idiots ...

    DisAgree Agree [2] Reply Report Abuse

  • SmR, Karkala

    Sun, Jul 14 2019

    The BJP 2019 election expenses are Rs 28000 crores.
    Nirav Modi + Mehul Choski Punjab National Bank Fraud =Rs 14,000 crores.
    Sanjay Singhal Bhushan Power & Steel = PNB reports over ₹3,800 cr fraud + Allahabad Bank defrauded of Rs 1,775 cr.

    In November last year steel tycoon Sanjay Singal, the majority owner of privately-held Bhushan Steel & Power has emerged as the country’s newest billionaire with a fortune of $1 billion debuted among India's 100 richest.
    The Delhi-based Sanjay has ties with another prominent billionaire clan. His daughter Radhika is married to Saurabh Dhoot, nephew of billionaire Venugopal Dhoot who runs consumer electronics empire Videocon. The two Marwari families celebrated their alliance with a big fat Indian wedding in 2010 that was notable for the presence of several Bollywood stars.
    On August 2014 Syndicate Bank bribe-for-loan scandal, the Central Bureau of Investigation (CBI) arrested Bhushan Steel's Vice Chairman and Managing Director Neeraj Singal for allegedly offering a bribe of Rs 50 lakh to Syndicate Bank Chairman and Managing Director Sudhir Kumar Jain for extending its credit limit. Jain had been arrested five days earlier. Significantly, Bhushan Steel is already neck deep in debt and owes around Rs 40,000 crore to 51 banks, including State Bank of India (SBI), Punjab National Bank and others.

    Now no wonder why our nationalized banks go bankrupt, while the PM Modi government has enough money to spend on elections and defections.
    Once this massive fraud proved that 'Demonetisation' is a complete failure.
    Jai Hind

    DisAgree Agree [4] Reply Report Abuse

  • Save My India, India.

    Sat, Jul 13 2019

    Bank frauds have become a daily routine in India.

    Indian banks are very risky at present.

    Nexus between fraudsters and "Corrupt Bankers" cannot be overlooked.

    DisAgree [1] Agree [5] Reply Report Abuse

  • Jossey Saldanha, Mumbai

    Sat, Jul 13 2019

    Show me any Bank in India which has nor been Swindled ...

    DisAgree [1] Agree [8] Reply Report Abuse

  • El En Tea, Mumbai

    Sat, Jul 13 2019

    After 2014 Demonitization one more bank fraud

    DisAgree [1] Agree [15] Reply Report Abuse


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Title: Allahabad Bank defrauded of Rs 1,775 cr by Bhushan Power & Steel



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