State owned Canara Bank today said Kolkata based RP Infosystems was declared as a fraud account in May 2015 in which it was a part of consortium of 17 banks and its exposure in the case was Rs 40 crore.
Clarifying to exchanges about news reports in a section of media stating that Canara Bank has filed a complaint with CBI on fraudulent transactions of Rs 515 crore against Kolkata based RP Infosystems and its directors, the bank said it financed a working capital limit (loan) of Rs 40 crore (4.69 per cent) as part of the consortium arrangement of 17 banks.
"We were not the leader of the consortium. The leader bank had already filed a case with CBI in May 2015. The account had already been treated as fraud by our bank during October 2015 and reported to RBI," it said in a statement.
Consequent upon the leader bank relinquishing its role as the leader of the consortium, and as directed by CBI (BS&FC), Kolkata, we were authorised by the remaining member banks to file revised complaint with CBI, which we have filed on February 26, 2018, Canara Bank said.
In a separate filing, Corporation Bank said it had declared the accounts of Ramnandi Estates Pvt Ltd as a non-performing asset (NPA) in September 2016 and has categorised it as fraud account.
Bank was responding to stock exchanges which had sought clarification from the bank with respect to a news about Ramnandi Estates having outstanding liabilities of Rs 6.66 crore at its Gaya branch.
"The accounts of the subject borrower have turned NPA on September 3, 2016. As per extant procedures after classifying the account as fraud by the bank on February 2, 2018, reported to RBI," it said in a regulatory filing.
Corporation Bank said that one property of the borrower was sold and recovered Rs 5.53 crore, remaining two properties of the borrower scheduled for auction on March 8, 2018 with reserve price of Rs 55 lakh and Rs 53 lakh.
"A compliant in the matter has also been lodged with CBI (Economic Offences Wing), Ranchi, which has been registered on February 27, 2018. By virtue of the accounts being classified as fraud, total exposure in these accounts shall be provides as per extant RBI guidelines," it said further.
With the spate of fraud cases hitting the banking sector, the finance ministry yesterday had asked all state-owned banks to scrutinise NPA accounts above Rs 50 crore for possible fraud and accordingly report the matter to CBI.
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