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People walk in front of the Brady House Branch of the Punjab National Bank in Mumbai, India on June 14, 2018. REUTERS / Francis Mascarenhas
MUMBAI (Reuters) – India's national bank Punjab (PNB) announced on Saturday that it has reported a loan forgiveness of 38.05 billion Indian rupees ($ 556 million) on the account of Bhushan Power & Steel Ltd. the country's central bank.
The fraud, "alleging embezzlement of the banking system", was reported to the Indian Reserve Bank (RBI) on the basis of the findings of the forensic audit and filing by the Federal Police of a first report of information, said the PNB in a statement. on the stock exchanges.
"It was found that the company had embezzled bank funds, manipulated books of account to raise funds from the lending banks of the consortium," said PNB, adding that it had already forecast 19.32 billion rupees in the account of Bhushan.
PNB was the victim of a separate scam worth more than $ 2 billion that was revealed last year.
Bhushan Power and Steel, one of India's most indebted companies, was one of the first 12 companies referred to bankruptcy court by RBI India for a debt resolution process under the new Indian insolvency law.
The company could not be contacted to comment on the PNB statement.
Reportage of Sankalp Phartiyal; Edited by Stephen Powell
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