Indian Bank declares Lanco Infra, Basundhara Green Power as fraud accounts with Rs 589 crore exposure

"We have to inform you that fully provided non-performing accounts have been declared as fraud and reported to RBI as per regulatory requirements," Indian Bank said in an exchange filing.

Published: 23rd July 2021 06:27 PM  |   Last Updated: 23rd July 2021 06:27 PM   |  A+A A-

An Indian Bank branch in Chennai

An Indian Bank branch in Chennai. (File photo| EPS)

By PTI

NEW DELHI: State-owned Indian Bank on Friday, July 23, 2021 declared Lanco Infratech and Basundhara Green Power as fraud accounts with a total outstanding balance of over Rs 589 crore.

"We have to inform you that fully provided non-performing accounts have been declared as fraud and reported to RBI as per regulatory requirements," it said in an exchange filing.

Lanco Infratech Ltd with a loan outstanding of Rs 577.47 crore to the bank, caused the fraud in the nature of diversion of funds.

Indian Bank said it has held a provision of an equal amount, Rs 577.47 crore, against this account.

Basundhara Green Power Ltd on the other hand caused the fraud by way of defective title deed or imperfect mortgage, the bank said.

The provision held is 100 per cent at Rs 11.64 crore, it added.

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