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.
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Canara Bank Exposure To Transstroy Consortium Lending At Rs 678 Cr
The Central Bureau of Investigation (CBI) has alleged that loans were misappropriated by the directors causing a loss of Rs 7,926.01 crore to the consortium members.
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State-run Canara Bank on Saturday said its exposure to Transstroy India Ltd is over Rs 678 crore under a consortium lending arrangement and the borrower was declared as a wilful defaulter earlier in 2018.
The company is under the process of liquidation, it said.
In a clarification, Canara Bank said the bank s exposure to the Transstroy India is of Rs 678.28 crore contrary to news claiming it to be an alleged fraud of Rs 7,926 crore.
Canara Bank Exposure To Transstroy Consortium Lending At Rs 678 Crore moneycontrol.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from moneycontrol.com Daily Mail and Mail on Sunday newspapers.
Canara Bank updates on alleged fraud by Transstroy India Ltd
Posted On: 2020-12-19 10:24:57 (Time Zone: Arizona, USA)
Canara Bank has announced regarding alleged fraud to the tune of Rs. 7926 Crore by M/s Transstroy India Ltd. The company was enjoying limits from various Banks under Multiple Banking Arrangement 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 and the share of Canara Bank is only Rs.678.28 Crore. The account was declared as fraud and reported to RBI on 10.02.2020.
Canara Bank has made 100% provision for this account as per the prescribed prudential norms. The Company has already been declared as Wilful Defaulter on 26.12.2018 by the Bank. Out of 7926.01 Crore fraud amount appearing in the press note, the amount of lending made by all the 14 Consortium members is Rs.4765.70 Crore. Remaining amount was lent under Multiple Banking Arrangement. Out of this,
CBI books Hyd-based construction company for alleged bank fraud
Cases were registered against its chairman and managing director Cherukuri Sridhar and another additional director Akkineni Satish, along with Rao, unknown public servants and others.
By Sruthi Vibhavari| Published: 18th December 2020 10:02 pm IST
Hyderabad: The Central Bureau of Investigation (CBI) on Friday registered a case against Hyderabad-based construction company Transstroy (India) Limited, for alleged bank fraud to the extent of Rs 7,926 crore. The bank is promoted by a former member of parliament and Telugu Desam Party leader Rayapati Sambasiva Rao.
According to an official release from the CBI, cases were registered against its chairman and managing director Cherukuri Sridhar and another additional director Akkineni Satish, along with Rao, unknown public servants and others.