July 18, 2019

Allahabad Bank Reports Rs 688-Crore Fraud By SEL Manufacturing Adding That The Matter Is Before The NCLT

[ By Bobby Anthony ]


The state-owned Allahabad Bank has stated in a regulatory filing that it has been hit by a fraud of Rs 688.27 crore by SEL Manufacturing and the matter is before the National Company Law Tribunal (NCLT).

According to a filing to the stock exchange, the account has also been declared as fraud and reported to the Reserve Bank of India (RBI) as per regulatory requirements.

Incidentally, the bank had also disclosed a recent fraud of Rs 1,774.82 crore by Bhushan Steel and Power Ltd (BSPL) to the RBI, alleging diversion of funds from banking system by the company.

Notably, the bank reported a fraud of Rs 1,774.82 crore BPSL only a week after Punjab National Bank had declared a fraud of Rs 3,805.15 crore by the same company for which JSW Steel is the highest bidder.

It may be recalled that JSW Steel’s bid to acquire BPSL under the insolvency resolution process is awaiting approval of the Delhi bench of NCLT.

In April 2018, the Chandigarh bench of NCLT had admitted an insolvency petition filed by SBI against SEL Manufacturing and initiated corporate insolvency resolution process (CIRP).

After this development, the company had appealed against admission of the petition and appointment of the interim resolution professional with the National Company Law Appellate Tribunal (NCLAT).

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