July 10, 2020 3:03:25 am
Punjab National Bank has decided to report a fraud of Rs 3,688.58 crore by Dewan Housing Finance Corporation Ltd (DHFL) to the Reserve Bank of India (RBI).
“A fraud of Rs 3,688.58 crore is being reported by the bank to the RBI in the accounts of the company (DHFL). The bank has already made provisions amounting to Rs 1,246.58 crore, as per prescribed prudential norms,” PNB said in a stock exchange filing.
The auditor of DHFL, which is under moratorium, had earlier reported a fair value loss of Rs 18,853 crore as of March 2020, mismatch of Rs 3,018 crore and stated that recoverability of inter-corporate deposits of Rs 3,786.24 crore “is yet to be ascertained”.
On November 20, 2019, the RBI superseded the board of directors of the company – managed by the Wadhawans — owing to governance concerns and defaults in meeting various payment obligations and appointed an administrator to run the company. Subsequently, NCLT admitted the application filed by the RBI and commenced the resolution process of the company under IBC.
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