new Delhi: Punjab National Bank (PNB) has reported a borrowing fraud of Rs 2,060.14 crore in a Non-Performing Account (NPA) of IL&FS Tamil Nadu Power Company Ltd. The bank has reported fraud in the accounts of the company to the RBI.
“Fraud of Rs 2,060.14 crore is being reported by the bank to the RBI in the accounts of the company,” PNB said in a filing. This came after the bank reportedly said that it has already made provision of up to Rs 824.06 crore as per norms.
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A month ago, IL&FS Tamil Nadu Power Company was declared to have outstanding assets of over Rs 148 crore by another public sector lender Punjab and Sind Bank (PSB).
Upon determination and disclosure of significant events as per the Bank’s policy, the PSBs declared the NPA as a fraudulent account. In a regulatory filing, the bank said, “It is informed that an NPA account, viz., IL&FS Tamil Nadu Power Company Ltd., having an outstanding of Rs 148.86 crore, has been declared as fraud and today RBI has received regulatory requirement.” As reported.” by News18.
According to the Economic Times report, at the end of March 31, 2021, it had to pay Rs 7,181 crore, as per the company’s annual report. Infrastructure Leasing and Financial Services Limited (IL&FS) has set up a special purpose vehicle for implementation of thermal power projects in Cuddalore, Tamil Nadu under its energy platform.
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Lending banks will classify such accounts as Special Mention Accounts (SMA) as per RBI guidelines.