Loan fraud: Canara Bank says exposure to Transstroy consortium lending at Rs 678 crore

Canara bank supposed that it has a revelation of Rs 678.28 crore on the 19th of December, Saturday under a conglomerate loaning planning to Hyderabad-based Transstroy India Ltd.  Earlier In 2018, the company was declared a wilful nonpayer and is currently under the process of liquidation added the state-run bank. By all the 14 consortium members is Rs.4765.70 Crore out of Rs 7,926.01 crore fraud amount the amount of lending made said the lender noticing that the outstanding amount was borrowed under numerous funding preparation. Canara Bank had an exposure of Rs 678.28 crore out of the Rs 7,926.01 crore amount.

Under multiple banking arrangements from 2001, the company was enjoying limits from various banks. The state-run lender noted in the statement, that in 2013 a grouping with Canara Bank as a leader and 13 other banks was formed and the share of Canara Bank is only Rs.678.28 crore and the total limit authorized was Rs.4765.70 crore.

The account was said to be a fraud and was stated to the RBI said by the Bengaluru-headquartered Canara Bank on 10th February 2020. It also said that as per the prescribed provident rules Canara Bank has made a 100% delivery for this account. Furthermore, on 10th October 2018, the case was denoted and confessed by NCLT, Hyderabad. As per the website apart from the ongoing closing process, the company was in connection with numerous sectors including ports, bridges, gas and oil, mining, and power.

The Hyderabad-based Transstroy (India) Ltd and its managers were reserved by CBI for an alleged bank scam of over Rs 7,926 crore to a conglomerate led by Canara Bank on Friday. It was said to be one of the biggest frauds in the country.

The loans were embezzled by the managers causing a loss of Rs 7,926.01 crore to the conglomerate members, said the CBI. Its spokesperson had said in a statement a day earlier that the searches were carried out by the Central probe agency on the grounds of the company and suspected managers along with former Telugu Desam Party (TDP) MP Rayapati Sambasiva Rao which resulted in the retrieval of implicating papers.


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