But due to the Nirav Modi case, the atmosphere is so charged that every case is painted as a fraud. Government has asked the banks to look at the fraud angle in all accounts above Rs 50 crore. In smaller companies, there are chances of money getting transferred from the working capital loan to other critical needs. Some of the unde-reporting may be a genuine difference of opinion between the regulator and the banks. The regulator gives banks the time to put up a defence and only then an action is taken.

Source: dna May 06, 2018 23:48 UTC