PNB detects 3805 Rs fraud on Bhushan Steel account

The Punjab National Bank (PNB) announced on Saturday that it reported a loan fraud of 3805 Rs ($ 556 million) on the account of Bhushan Power & Steel Ltd at the country's central bank.

The fraud, "alleging misappropriation of funds from the banking system", was reported to the Reserve Bank of India (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 statement to the stock market.

"It was found that the company had embezzled bank funds, manipulated books of account to raise funds from lending banks of the consortium," said PNB, adding that she had already provisioned Bhushan's account in its account.

PNB was the victim of a separate scam reported over $ 2 billion that was revealed last year.

Bhushan Power and Steel, one of India's most indebted companies, was one of the top 12 companies referred by the RBI to a bankruptcy court for a resolution process. debt under the new law on insolvency.

The company could not be contacted to comment on the PNB statement.