‘Fraudulent’ transactions of Rs 1,500 crore detected in Srei

New Delhi, October 21, 2022

In an exchange filing on Thursday, the firm said forensic auditor BBDO India detected at least 5 loan transactions involving Rs 1,492 crore that were fraudulent in nature.

Forensic auditors have detected fraudulent transactions of Rs 1,500 crore by Srei Equipment Finance, a wholly-owned subsidiary of Srei Infra Finance. These transactions took place from 2013-14 to 2020-21.

In an exchange filing on Thursday, the firm said forensic auditor BBDO India detected at least 5 loan transactions involving Rs 1,492 crore that were fraudulent in nature. The loans in question were given to Aviral Maritime, Adinath Ports, Kitply Industries, Swachh Group, Whitefield Paper Mills and Bengal Industrial Infrastructure.

The auditor has named both the promoters -- Hemant Kanoria and Sunil Kanoria – for their involvement in these transactions apart from the ‘beneficiary’ firms. The biggest transaction involving Rs 838 crore was loan disbursement to Aviral Maritime Infrastructure Dahej Private and Adinath Port and Logistics.

Earlier also, forensic auditors had detected fraudulent transactions worth Rs 3,000 crore in Srei Equipment finance. Both Srei Infrastructure Finance and Srei Equipment Finance are undergoing corporate insolvency resolution process, and as per the provisions of the insolvency law administrators or resolution, professionals are required to identify if the firm undergoing insolvency process has made preferential, fraudulent transactions, undervalued or extortionate transactions in the past.

[The New Indian Express]