Canara Bank clarifies exposure to Transstroy (India) only Rs 678 crore
Government-owned Canara Bank has clarified that it has a total exposure of Rs 678.28 crore in Transstroy (India) Ltd, which has been accused of defrauding banks of Rs 7,900 crore.
The bank said in a statement that it has reported the total exposure in Transstroy (India) Ltd to the Reserve Bank of India (RBI) on 10 February 2020, and made 100% provision against the exposure.
The Central Bureau of Investigation (CBI) has registered a case against Hyderabad-based Transstroy (India) Ltd and its directors for committing bank fraud to the tune of Rs 7926 crore.
Also read: Transstroy (India), CMD in CBI net for committing Rs 7926-crore bank fraud
FIRs have been filed against the company, its chairman and managing director Cherukuri Sridhar, additional directors Rayapati Sambasiva Rao and Akkineni Satish, Additional Director, and unknown public servants.
Transstroy India Ltd (TIL), established in the year 2001, is in line of business of Contractors, Engineers, Promoters & Developers of Roads, Bridges, Tunnels, Highways etc. The company was enjoying limits from various banks under multiple banking arrangement from 2001. Subsequently, a consortium with Canara Bank as a leader and 13 other banks was formed in 2013 and the total limit sanctioned was Rs.4765.70 crore and the share of Canara Bank is only Rs.678.28 crore.
According to Canara Bank, out of 7926 crore fraud amount, the amount of lending made by all the 14 consortium members is Rs.4766 crore. The remaining amount was lent under Multiple Banking Arrangement.
The case was referred to NCLT and was admitted by NCLT, Hyderabad in October 2018. The company is under the process of liquidation. The company has already been declared as willful defaulter by Canara Bank on 26 December 2018.
