Allahabad Bank reports about ₹688 crore fraud by SEL Manufacturing
1 min read . Updated: 18 Jul 2019, 08:22 AM IST- The account has also been declared as fraud and reported to RBI
- NCLT proceedings are in the process for the matter
New Delhi: State-owned Allahabad Bank on Wednesday said the bank has been hit by a fraud of ₹688.27 crore by SEL Manufacturing and the matter is before the NCLT.
"We have to inform that a fully provided non-performing account, SEL Manufacturing Ltd (SELM) with outstanding dues of ₹688.27 crore for which NCLT proceedings are in progress," Allahabad Bank said in a regulatory filing.
The account has also been declared as fraud and reported to the Reserve Bank of India (RBI) as per regulatory requirement, it added.
Last week, the Kolkata-headquartered lender had disclosed to the RBI about a fraud of ₹1,774.82 crore by Bhushan Steel and Power Ltd (BSPL), alleging diversion of funds from banking system by the company.
"The bank has already made provisions amounting to ₹900.20 crore against the exposure of the bank in BPSL," Allahabad Bank had said on Saturday.
This story has been published from a wire agency feed without modifications to the text.
