According to a Care Ratings assessment report dated June 29, 2021, IL&FS Tamil Nadu Power Banks owes Rs 5,584.93 crore.

Punjab National Bank (PNB) said on Tuesday it has classified its Rs 2,060.14 crore exposure to IL&FS Tamil Nadu Power as a fraud account. The lender has made provisions worth Rs 824.06 crore against its exposure to the company.

“A fraud of Rs 2,060.14 crore is reported by the bank to RBI (Reserve Bank of India) in the company’s accounts. Bank has already provisioned in the amount of `824.06 crore, according to prescribed prudential standards,’ PNB said in a notification to the stock exchanges.

Last month, Punjab & Sind Bank had also classified the same account as fraud. The exposure to IL&FS Tamil Nadu Power is Rs 148 crore.

IL&FS Tamil Nadu Power is a special purpose vehicle (SPV) promoted by IL&FS Energy Development Company, which in turn is a subsidiary of Infrastructure Leasing & Financial Services (IL&FS). The company had set up an integrated 1,200 megawatt (MW) imported coal-based subcritical thermal power plant in Cuddalore, Tamil Nadu.

According to a Care Ratings assessment report dated June 29, 2021, IL&FS Tamil Nadu Power Banks owes Rs 5,584.93 crore.

RBI standards state that in addition to reporting fraud cases to the regulator, banks must also file a flash report (FR) for fraud involving amounts of Rs 5 crore and above within a week of such fraud being notified to the bank’s head office . The FR must indicate the amount involved, the nature of the fraud, the modus operandi in brief, the name of the branch or office, names of involved parties, their statutes, names of owners, partners and directors, names of involved officers and the File a complaint with the police or state agencies.


This post PNB classifies Rs 2,060 crore to IL&FS Tamil Nadu Power as fraud was original published at “https://www.financialexpress.com/industry/banking-finance/pnb-classifies-rs-2060-crore-to-ilfs-tamil-nadu-power-as-fraud/2462151/”

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