PNB reports another fraud! Bank defrauded of Rs 2,060 crore by THIS company

According to PNB, the fraud account belonged to the IL&FS Tamil Nadu Power at the Extra Large Corporate Branch in Delhi zonal office.

New Delhi: In yet another scam, the Punjab National Bank (PNB) has reported a borrowal fraud amounting to Rs 2060.14 crore in the Non-Performing Asset (NPA) account of a thermal power company. 

According to PNB, the NPA account belonged to the IL&FS Tamil Nadu Power at the Extra Large Corporate Branch in Delhi zonal office. In an official disclosure, PNB said that fraud of Rs 2060.14 crore is being reported to the RBI in the accounts of the company. 

“The bank has already made provisions amounting to Rs 824.06 crore, as per prescribed prudential norms," PNB added in its disclosure.

Based out of Chennai, IL&FS Tamil Nadu Power is a special purpose vehicle set up by Infrastructure Leasing & Financial Services Ltd (IL&FS). The state-funded infrastructure development and finance company had set up IL&FS Tamil Nadu Power under its energy platform for the implementation of thermal power projects. These projects are located at Cuddalore in Tamil Nadu.

Last month, the Punjab & Sind Bank (PSB) had declared IL&FS Tamil Nadu Power as a bad asset with dues of more than Rs 148 crore and reported it to the Reserve Bank of India.

 The bank had said on February 15 that it has declared this non-performing account (NPA) as a fraud account, according to the bank`s policy on determination and disclosures on material events. Also Read: EU hikes tariffs on India, Indonesia stainless steel imports

"It is informed that an NPA account, viz IL&FS Tamil Nadu Power Company Ltd with outstanding dues of Rs 148.86 crore has been declared as fraud and reported to RBI today as per regulatory requirement," the lender had said in a regulatory filing seen by IANS. Also Read: Over 6.63 crore ITRs for FY21 filed till March 15: Income Tax Dept

With IANS inputs.