Bhushan Power Steel Fraud Again ₹1775 core: Allahabad Bank Reports.

Bhushan Power  Steel

Bhushan Power & Steel  fraud again  ₹1775 core:  Allahabad Bank reports

Bank has officially made provisioning of ₹900.20 crores against presentation of the bank in Bhushan Power and Steel.
This was the case with PNB last week, of which 3505 crore was a case of cheating by Bhushan steel.

Second-time state-claimed loan specialist Allahabad Bank Saturday detailed an extortion of over ₹1,774 crore by Bhushan Power and Steel to the Reserve Bank of India

In a regulatory filing, Allahabad Bank said on the basis of the findings of the forensic audit investigation and the CBI's FIR against the company and its directors, alleging diversion of funds from banking system by Bhushan Power and Steel Ltd (BPSL), a fraud of ₹1,774.82 core has been reported by the bank to the RBI.

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

Bank has already made provisions amounting to ₹900.20 crores against exposure of the bank in Bhushan Power and Steel.

At present, the case is in the National Company Law Tribunal (NCLT), which is in an advanced stage and the bank expects good recovery in the account.

Allahabad Bank
It is expected that more banks would report fraud committed by Bhushan Power and Steel as the CBI complaint registered in April named several other lenders.

According to the CBI, Bhushan Power and Steel diverted around ₹2,348 crore through its directors and staff from the loan accounts of PNB (IFB New Delhi & IFB Chandigarh), Oriental Bank of Commerce (Kolkata), IDBI Bank (Kolkata) and UCO Bank (IFB Kolkata) into the accounts of more than 200 shell companies without any obvious purpose.

The agency said that the company is doing so had misused the funds and the FIR named chairman Sanjay Singhal, vice-chairman Aarti Singhal, along with other directors as suspects.

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