How big corporate house swindled Rs 2060 Cr from PNB

New Delhi, March 15:  Punjab National Bank (PNB) has reported a fraud of Rs 2060.14 crore in the NPA account of IL&FS Tamil Nadu Power at the Extra Large Corporate Branch in Delhi zonal office.

“A fraud of Rs 2060.14 crore is being reported by the bank 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 said in a disclosure.

IL&FS Tamil Nadu Power is a special purpose vehicle set up by Infrastructure Leasing & Financial Services Ltd (IL&FS) under its energy platform for the implementation of thermal power projects at Cuddalore in Tamil Nadu.

Earlier, the Punjab & Sind Bank (PSB) had said on February 15 that it had declared IL&FS Tamil Nadu Power as a bad asset with dues of over Rs 148 crore and reported it to the Reserve Bank of India.

As per the bank’s policy on determination and disclosures on material events, PSB said it has declared this non-performing account (NPA) as a fraud account.

“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.