LIVE TV
ZEE Business
ZEE BUSINESS
हिंदी में पढ़ें  हिंदी में पढ़ें
Live TV
Live TV
  • Home
  • Budget 2021
  • Personal Finance
    • PPF
    • Mutual Funds
    • Income tax
    • EPFO
    • Income Tax Calculator
    • Personal Loan Calculator
    • Car Loan Calculator
    • Home Loan Calculator
    • SIP calculator
    • SWP Calculator
    • MF Returns Calculator
    • Lumpsum Calculator
  • India
    • Companies
    • Property
    • Startups
    • Uidai
  • Economy
    • Aviation
  • Tech
    • Mobiles
    • Apps
  • Auto
    • Cars
    • Bikes
  • Markets
    • Commodities
    • Currency
  • Jobs
  • Indian Railways
  • World
    • Economy
    • Politics
    • Markets
  • videos
  • photos
  • Authors
  • More ...
    • VIDEOS
    • PHOTOS
Read in App
Business News » India News

Rs 1,000 crore loan fraud! This company has been accused of sensational scam

State-owned Power Finance Corporation, Rural Electrification Corporation and India Infrastructure Finance Co Ltd have accused Hyderabad-based Ind-Barath Power (Madras) Ltd, Ind-Barath Power Infra Ltd and their directors of defrauding and siphoning off Rs 1,000 crore of public money.  

  • Twitter
  • Facebook
  • Linkedin
  • whatapp
  • View in App
Rs 1,000 crore loan fraud! This company has been accused of sensational scam
Rural Electrification Corporation and India Infrastructure Finance Co Ltd have accused Hyderabad-based Ind-Barath Power (Madras) Ltd, Ind-Barath Power Infra Ltd and their directors of defrauding and siphoning off Rs 1,000 crore of public money. Image sour
Written By: Kumar Shankar Roy
Updated: Mon, Oct 08, 2018
09:50 am
ZeeBiz WebDesk
RELATED NEWS
CAG criticises govt for awarding diesel locomotive factory contract to GE CAG criticises govt for awarding diesel locomotive factory contract to GE
Indian Railways ticket prices to be hiked? Big setback blamed on low passenger fares Indian Railways ticket prices to be hiked? Big setback blamed on low passenger fares
Govt recovered less than 9% service tax arrears in FY17: CAG Govt recovered less than 9% service tax arrears in FY17: CAG
Days after CAG report said ‘Railway food not fit for human consumption’ lizard found in rice Days after CAG report said ‘Railway food not fit for human consumption’ lizard found in rice

State-owned Power Finance Corporation, Rural Electrification Corporation and India Infrastructure Finance Co Ltd have accused Hyderabad-based Ind-Barath Power (Madras) Ltd, Ind-Barath Power Infra Ltd and their directors of defrauding and siphoning off Rs 1,000 crore of public money.

The PSU companies have alleged that the accused, including Ind-Barath Group chairman K Raghu Rama Raju and director Madhusudan Reddy diverted the funds disbursed (loans) for the implementation of a 660 megawatt (mw) coal-based power project in Tuticorin district of Tamil Nadu.

The lenders have complained that the accused persons and entities made fraudulent transactions in collusion with each other and have caused a loss to the consortium of banks and financial institutions to the tune of Rs 947.71 crore.

The three lenders - PFC, REC and IIFCL - together have lodged a written complaint with the Economic Offences Wing (EOW) of Delhi Police in this matter on October 3 under IPC sections 420/406/120B, shows a copy of the FIR accessed by DNA Money.

Ind-Barath Power Madras Ltd (IBPML), incorporated in 2006, proposed to develop a 660 mw coal-based thermal power plant project at Sasthavinallur and Pallakkurichi villages at Sattankulam taluk, Tuticorin district in Tamil Nadu.

The lender consortium was led by PFC. The total disbursement towards IBPML by the three consortium lenders was Rs 947.71 crore. The funds appear to have been used for purposes other than the project. For REC, the account became non-performing asset (NPA) on 31 December 2016. As per IIFCL latest annual report, it had sanctioned a rupee term loan of Rs 250 crore and disbursed Rs 89.24 crore in the Trust and Retention Account (TRA) maintained with Axis Bank. IIFCL said it has already reported the instance of fraud to RBI.

The 660 mw project was initially expected to be commissioned by June 2016.

IBPML is currently undergoing corporate insolvency resolution process. As on October 1, 2018, PFC, REC, IIFCL and Axis Bank were listed as its financial creditors. As an operational creditor, Power Grid Corporation of India has a claim worth Rs 632 crore.

Watch this zee Business video here:

In an order dated October 18, 2017, National Company Law Tribunal, Hyderabad bench, appointed Ashish Rathi as the resolution professional of IBPML. Management of the affairs and powers of the Board of directors of the corporate debtor are now vested in the resolution professional. IBPML’s power project was to be built on 600 acre of land, which is mortgaged to lenders. Physical completion of the project is less than 15-20%. The project is now stalled.

A 2017 CAG report on loans to independent power producers by REC and PFC had said that the core promoter of IBPML had experience of developing eight power projects having an aggregate capacity of 712.50 mw. “The project proposal was awarded 50% by REC against the experience criteria, even though the promoter had no experience in implementation of similar technology, and capacity of project and the loan was sanctioned,” the report said.

Source: DNA Money

Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.

TAGS:
CAG report
RELATED NEWS
CAG criticises govt for awarding diesel locomotive factory contract to GE CAG criticises govt for awarding diesel locomotive factory contract to GE
Indian Railways ticket prices to be hiked? Big setback blamed on low passenger fares Indian Railways ticket prices to be hiked? Big setback blamed on low passenger fares
Govt recovered less than 9% service tax arrears in FY17: CAG Govt recovered less than 9% service tax arrears in FY17: CAG
Days after CAG report said ‘Railway food not fit for human consumption’ lizard found in rice Days after CAG report said ‘Railway food not fit for human consumption’ lizard found in rice

LATEST NEWS

Car sector seeks more UK government support as output tumbles

Shola Shoretire becomes Man Utd's youngest ever player in European competition

Facebook switches news back on in Australia, signs content deals

7th Pay Commission: Salary up to Rs 1.77 lakh plus DA, HRA; check details at nta.nic.in - Delhi University Recruitment 2021

PUBG Mobile 2: PUBG Mobile New State official trailer released, pre-registration on Google Play Store | All new features, details here!

Gold Price Today – Yellow metal cheaper by Rs 160 on Thursday; Silver by Rs 18; Know what to expect today

This Twitter feature allows users to make money; know what is 'Super Follow'

Heranba Industries IPO Subscription Status: Last day today to subscribe

Microsoft failed to shore up defenses that could have limited SolarWinds hack - U.S. senator

7th Pay Commission: DA, TA, DR, salary hike—what central government employees and pensioners must know

  • India News
  • World News
  • Companies News
  • Market News
  • Personal Finance News
  • Technology News
  • Automobile News
  • Small Business News
  • Income Tax Calculator
  • Live TV
  • Videos
  • Photos
  • Author
  • Rss Feed
  • Advertise with us
  • Privacy Policy
  • Legal Disclaimer

Latest Trending Updates

  • EPFO
  • Budget 2020
  • Income Tax Return
  • Auto Expo 2020
  • Home Loan
  • Business News

Trending Topics

  • Income Tax
  • income Tax Calculator
  • 7th Pay Commission
  • Reserve Bank of India
  • GST
  • Latest Business News

Follow us on

zeebiz
zeebiz

Partner Sites

  • Zee News
  • Hindi News
  • Marathi News
  • Bengali News
  • Tamil News
  • Malayalam News
  • Gujarati News
  • Telugu News
  • Kannada News
  • DNA
  • WION
Copyright © Zee Media Corporation Ltd. All rights reserved