NEW DELHI: In a stern warning to bankers, the Finance Ministry has asked chief executives of public sector banks (PSBs) to check all NPA accounts exceeding Rs 50 crore for fraud or they could face prison conspiracy fees, in step with respectable resources.
This missive comes within the mild of arrest of Bhushan Steel's erstwhile promoter Neeraj Singal by the Serious Fraud Investigation Office (SFIO) for allegedly siphoning off price range.
The resources stated that bankers may well be held responsible below Section 120B of Indian Penal Code if they fail to document fraud in an account which is later unearthed by investigating agencies, resources stated.
If the investigating agencies to find diversion of price range in the ones defaulting accounts, bankers is also vulnerable to face prison complaints, the resources stated, adding that this advisory is like an additional precaution to stay bankers from coming into criminal tangles.
More than a dozen companies present process chapter solution are being reviewed by banks and investigating agencies for fraudulent actions together with diversion of price range.
Indian banks are going through mounting non-performing assets (NPAs) or dangerous loans, especially at PSBs, which have reached over Rs eight lakh crore. In addition, a number of banking frauds have been unearthed, together with the Rs 14,000 crore scam at PNB, performed allegedly by diamond jeweller Nirav Modi and his mates.
A senior government respectable confirmed the development and stated that some discrepancies have been pointed out in relation to a steel maker and a real estate firm amongst 10-12 companies.
"There were some inputs and lenders who have been asked to provide transaction details of last five years. If required, banks will also undertake forensic audit," he stated.
Earlier this month, SFIO arrested Singal for alleged diversion of Rs 2,000 crore, raised via loans from state-owned banks.
"Similar modus operandi has been used by other promoters also," stated any other government respectable, adding that there were intelligence inputs on associate companies getting used for equivalent transactions.
SFIO could also be having a look into the books of businesses which are these days present process debt solution, he stated, adding that this has been performed on the foundation of particular inputs supplied by the ministry of company affairs.
During the solution process, the intensive audit of bankrupt companies has thrown up monetary irregularities in numerous instances.
In June 2017, the Reserve Bank of India (RBI) had known 12 wired accounts, each having more than Rs 5,000 crore of outstanding loans and accounting for 25 in line with cent of general non-performing assets (NPAs) of banks for fast referral below the Insolvency and Bankruptcy Code (IBC). In August, RBI had despatched an inventory of 28 more firms to lenders for solution by December 2017.
"These accounts also have some firms from the second list and those where later banks filed cases in NCLT (National Company Law Tribunal)," stated a financial institution govt acutely aware of the developments.
The NCLT benches handle banks' dangerous debt solution below Insolvency and Bankruptcy Code (IBC).
Banks have to undertake a two-year transaction audit after they start the solution process via IBC. In case there are any problems or particular knowledge, banks additionally conduct a forensic audit.
In August 2017, SFIO used to be given powers to arrest other folks for corporate legislation violations. SFIO is a multidisciplinary organisation having experts for prosecution of white-collar crimes and frauds below the company legislation.
NCLT has so far taken resolution on 655 instances below IBC that come with more than 200 that have been admitted to quite a lot of NCLT benches.
This missive comes within the mild of arrest of Bhushan Steel's erstwhile promoter Neeraj Singal by the Serious Fraud Investigation Office (SFIO) for allegedly siphoning off price range.
The resources stated that bankers may well be held responsible below Section 120B of Indian Penal Code if they fail to document fraud in an account which is later unearthed by investigating agencies, resources stated.
If the investigating agencies to find diversion of price range in the ones defaulting accounts, bankers is also vulnerable to face prison complaints, the resources stated, adding that this advisory is like an additional precaution to stay bankers from coming into criminal tangles.
More than a dozen companies present process chapter solution are being reviewed by banks and investigating agencies for fraudulent actions together with diversion of price range.
Indian banks are going through mounting non-performing assets (NPAs) or dangerous loans, especially at PSBs, which have reached over Rs eight lakh crore. In addition, a number of banking frauds have been unearthed, together with the Rs 14,000 crore scam at PNB, performed allegedly by diamond jeweller Nirav Modi and his mates.
A senior government respectable confirmed the development and stated that some discrepancies have been pointed out in relation to a steel maker and a real estate firm amongst 10-12 companies.
"There were some inputs and lenders who have been asked to provide transaction details of last five years. If required, banks will also undertake forensic audit," he stated.
Earlier this month, SFIO arrested Singal for alleged diversion of Rs 2,000 crore, raised via loans from state-owned banks.
"Similar modus operandi has been used by other promoters also," stated any other government respectable, adding that there were intelligence inputs on associate companies getting used for equivalent transactions.
SFIO could also be having a look into the books of businesses which are these days present process debt solution, he stated, adding that this has been performed on the foundation of particular inputs supplied by the ministry of company affairs.
During the solution process, the intensive audit of bankrupt companies has thrown up monetary irregularities in numerous instances.
In June 2017, the Reserve Bank of India (RBI) had known 12 wired accounts, each having more than Rs 5,000 crore of outstanding loans and accounting for 25 in line with cent of general non-performing assets (NPAs) of banks for fast referral below the Insolvency and Bankruptcy Code (IBC). In August, RBI had despatched an inventory of 28 more firms to lenders for solution by December 2017.
"These accounts also have some firms from the second list and those where later banks filed cases in NCLT (National Company Law Tribunal)," stated a financial institution govt acutely aware of the developments.
The NCLT benches handle banks' dangerous debt solution below Insolvency and Bankruptcy Code (IBC).
Banks have to undertake a two-year transaction audit after they start the solution process via IBC. In case there are any problems or particular knowledge, banks additionally conduct a forensic audit.
In August 2017, SFIO used to be given powers to arrest other folks for corporate legislation violations. SFIO is a multidisciplinary organisation having experts for prosecution of white-collar crimes and frauds below the company legislation.
NCLT has so far taken resolution on 655 instances below IBC that come with more than 200 that have been admitted to quite a lot of NCLT benches.
Check frauds in NPAs or face penal action: Govt tells PSU bank CEOs
![Check frauds in NPAs or face penal action: Govt tells PSU bank CEOs]()
Reviewed by Kailash
on
August 22, 2018
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