Source: Pantomath
Source: Pantomath
Category: Excerpts
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SFIO to investigate L&T?
The Serious Fraud Investigation Office (SFIO) has received a complaint against Larsen & Toubro alleging “thousands of crores” of financial irregularities, including money laundering and tax evasion, a charge that the infrastructure giant rubbished as “baseless”.
Acting on the complaint received, SFIO’s Mumbai regional office has written to the head-office here stating that it “is a fit case to be investigated” as it will “help in unearthing wrong doings of L&T group, in terms of misappropriation of money, money laundering and tax evasion”.
In the complaint, Rajya Sabha MP Kahkashan Perween has alleged that loans worth Rs 8,000 crore given to the Group for road projects face serious threat of turning into NPAs. It alleged irregularities in two projects – L&T Halol Shamlaji Tollway Ltd (L&T Halol) and L&T Chennai Tada Ltd.
Source: ET
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The government and the Reserve Bank of India (RBI) may have to step in to avoid an unprecedented event in Indian banking. Close to Rs 1,000 crore of Union Bank of India’s exposure on account of letters of undertakings (LoUs) issued by Punjab National Bank is due in the next few days.
If the state-owned PNB does not pay back the amount by March 31, Union Bank (another government owned lender) will have to treat PNB as a defaulter in its books, provide for the loan, and even classify the amount as non-performing asset (NPA) if auditors insist.
“It would be a peculiar situation because for the first time a bank would be technically described as defaulter,” a senior banker told ET. In the event of fraud, banks are required to make full and immediate provisioning against outstanding as well as categorise the loan as NPA.