Bank Frauds: Rise in scams hit capital position of banks
In 2019-20, the Indian banking sector saw a 159% jump in dubious transactions to Rs 1.86 lakh crore, the Reserve Bank of Indiaâs data showed.
For the first six month of 2019-20, SBI â the largest lender of the country with about 25% market share in loans â reported 2939 incidents of fraud valued at Rs 25,417 crore.
A spate of frauds has hit the banking sector in recent times which could significantly deplete the capital position of the lenders as they are mandated to set aside capital as provision for the entire fraud amount.
In the last month, two cases of fraud have come up. Firstly, that of IVRCL, where the companyâs MD E Sudhir Reddy and Joint MD R Balarami Reddy was booked by the Central Bureau of Investigation for the alleged fraud of Rs 4,800 crore against a consortium of banks. Another was State-owned Punjab & Sind Bank which declared the account of Sintex Industries which has an exposure of Rs
CBI registers case against IVRCL, MD, others for ₹4,837-crore fraud
December 31, 2020
×
SBI, in its complaint, said the company, in connivance with some government officials, defrauded a consortium of banks
The Central Bureau of Investigation has registered a case against Hyderabad-based debt-strapped construction and infrastructure company IVRCL Limited, the company’s MD, Joint MD and others for a ₹4,837-crore banking fraud.
The investigating agency registered the case based on a complaint by State Bank of India, Hyderabad, against the company’s Managing Director E Sudhir Reddy and Joint Managing Director R Balarami Reddy, along with some public servants.
SBI, in its complaint, alleged that IVRCL, in connivance with some government officials, defrauded a consortium of public sector banks of over ₹4,837 crore.
‘Even COVID couldn t stop Rs 10,000 Cr scam, CM BSY must resign’: AAP Karnataka
The Central Bureau of Investigation has registered a case against Hyderabad-based IVRCL Ltd, its Managing Director E. Sudhir Reddy, and Joint Director R Balarami Reddy in connection with a Rs 4,837 crore bank fraud case and carried out searches at several locations.
A CBI official said that the agency registered a case against IVRCL Ltd and its MD and Joint Director and other unknown public servants/others on a complaint from State Bank of India, Hyderabad.
He said that it was alleged that the accused, in connivance with unknown public servants and others, defrauded the consortium of public sector banks, consisting of State Bank of India, IDBI Bank, Canara Bank, Andhra Bank, Corporation Bank, EXIM Bank, Punjab and Sind Bank, and Union Bank of India and caused a loss of Rs 4,837 crore.
CBI files case against IVRCL for Rs 5,000 crore loan fraud
The company allegedly availed various credit limits from a consortium of banks, led by State Bank of India and cheated the banks, without repaying the loan amount
Dipak Mondal | December 30, 2020 | Updated 21:09 IST
Representative Image
The Central Bureau of Investigation (CBI) has registered a fraud case against Hyderabad-based IVRCL Limited, its former managing director E Sudhir Reddy, former joint Managing Director R Balarami Reddy and unknown public servants, others on a complaint from State Bank of India, Hyderabad.
It was alleged that the accused in connivance with unknown public servants and others defrauded the consortium of public sector banks consisting of State Bank of India, IDBI Bank, Canara Bank, Andhra Bank, Corporation Bank, EXIM Bank, Punjab & Sind Bank, Union Bank of India and caused a loss of Rs 4,837 crore to the banks.