MUMBAI: India’s state-run Punjab National Bank (PNB) said it had reported a borrowing fraud of 38.05 billion Indian rupees (US$556mil) in Bhushan Power & Steel Ltd’s account to the country’s central bank. “It has been observed that the company has misappropriated bank funds, manipulated books of accounts to raise funds from consortium lender banks,” PNB said. PNB has been defrauded of over US$2bil in a separate scam that came to light last year. Bhushan Power and Steel, one of India’s most indebted companies, was among the first 12 companies referred by the RBI India to a bankruptcy court for a debt resolution process under India’s new insolvency law. The company could not be reached for comment on the PNB statement.

Source: The Star July 07, 2019 19:30 UTC