The Central Bureau of Investigation (CBI) has booked Hyderabad-based Transstroy India and its directors for alleged bank fraud of over Rs 7,926 crore.
Canara Bank clarified to the bourses on Saturday (19 December 2020) that Transstroy India was enjoying limits from various banks under multiple banking arrangements from 2001. Subsequently, a consortium with Canara Bank as leader with 13 other banks was formed in 2013 and the total limit sanctioned was Rs 4765.70 crore. The share of Canara Bank in the consortium is only Rs 678.28 crore.
The account was declared as fraud and reported to the Reserve Bank of India (RBI) on 10 February 2020. Canara Bank said it has made 100% provision for this account as per the prescribed prudential norms. The company was declared as willful defaulter on 26 December 2018 by the bank.