India

Another Scam Hits Punjab National Bank, This Time For Rs 3,805 Crore

Punjab National Bank (PNB) has reported a borrowing fraud of Rs 3,805 crore by Bhushan Power & Steel Ltd to the Reserve Bank of India.

“It has been observed that the company has misappropriated bank funds, manipulated books of accounts to raise funds from consortium lender banks,” news portal Scroll.in quoted a bank statement as saying. “At present, the case is at the National Company Law Tribunal (NCLT), which is in advance stage and the bank expects good recovery in the account,” it added.

The state-owned bank said on Saturday that the alleged “diversion of funds from the banking system” was reported to the RBI on the basis of the findings of a forensic audit and the CBI filing an FIR.

Bhushan Power & Steel is one of the most indebted companies in the country and among the first 12 companies referred by the RBI to a bankruptcy court for a debt resolution process under the new insolvency law.

Earlier, PNB was defrauded of Rs 13,000 crore in another scam that came to light in 2018. Diamond merchant Nirav Modi and his uncle Mehul Choksi are accused of cheating the bank.

OB Bureau

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