Punjab & Sind Bank flags fraud in Bhushan Power account

Punjab & Sind Bank flags fraud in Bhushan Power account

State-owned Punjab & Sind Bank Wednesday reported over Rs 238 crore fraud by Bhushan Power and Steel, a third such instance after similar disclosures made by PNB and Allahabad Bank recently.

“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 Rs 238.30 crore is being reported by bank to RBI.

“In the accounts of the company (BPSL), bank has already made provisions amounting to Rs 189.35 crore, as per prudential norms,” Punjab & Sind Bank (PSB) said in a regulatory filing.

It has been observed that the company has misappropriated bank funds, manipulated books of accounts to raise funds from consortium of lender banks, it said.

“At present, the case is at NCLT which is in advance stage and the bank expects good recovery in the account,” it added further. Read More

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