Lawstreet Journal

DHFL Loan of Rs. 3,688 crores in PNB Account declared ‘Fraud’

Lawstreet Journal 10 Jul 2020 10:03pm

Image courtesy: Lawstreet Journal Business DHFL Loan of Rs. 3,688 crores in PNB Account declared ‘Fraud’

On Thursday, 9th July 2020, State-Owned Punjab National Bank reported a fraud of Rs. 3,688.58 crores in the NPA account of Deewan Housing Finance Ltd (DHFL) to the Reserve Bank of India. 

The DHFL came in the eye of the storm after a report found that the firm, via layers of shell firms, allegedly siphoned off Rs 31,000 crores out of a total of Rs 97,000 crores bank loans. An exchange filing dated 9th July 2020, said: “A fraud of Rs 3688.58 crores in the NPA account of Deewan Housing Finance (DHFL) at Large Corporate Branch at Mumbai, Zonal Office, Mumbai. A fraud of Rs 3688.58 crores is being reported by the bank to RBI in the accounts of the company (DHFL).” 

Besides, the filing undersigned by Company Secretary Ekta Pasricha reported that the bank has already made provision for Rs 1246.58 crores in line with the prescribed prudential laws, which conform to the SEBI Regulations. As per the SEBI regulations, 100 percent provisioning is required in fraudulent accounts for four quarters, and PNB has so far provided Rs 1,246 crores. 

State Bank of India (SBI) and Union Bank of India (UBI) have already declared DHFL to be a fraud account, while private lender IndusInd Bank has also reportedly taken similar steps. DHFL has accumulated a debt of over Rs 85,000 crores and its promoter Kapil Wadhawan is believed to have laundered large amounts of money to make a deal with gangster Iqbal Mirchi. The Ministry of Corporate Affairs has initiated a Serious… Continue Reading...

Tagged: Punjab National Bank  
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