BDO India Finds More Fraudulent Deals In SREI Equipment

SREI Equipment Finance Ltd.’s transaction auditor BDO India found more fraudulent transactions, whose monetary impact totaled 914.22 crore rupees ($110.43 million) as on 30 September 2021.

BDO India discovered loan disbursements to Unitech Ltd., Chaitanya Vincom Private Ltd., and Tefo Nirman Private Ltd. (Unitech and Danvir Group) by the company under former management, the non-bank lender said in a stock exchange announcement.

SREI, which is undergoing insolvency resolution, said the total impact of the transactions, excluding interest, amounts to 580 crore rupees. The transactions occurred between FY15 and FY21, it noted.

SREI Equipment, a material subsidiary of SREI Infrastructure Finance Ltd., said BDO India also discovered loan disbursements to Kothavalsa Infraventures Private Ltd. by the company under erstwhile management.

The monetary impact amounts to 334.22 crore rupees, excluding interest, for the transactions that occurred between FY20 and FY22.

The Kolkata-based firm said its administrator on 3 January filed an application before the Kolkata bench of the National Company Law Tribunal (NCLT) against the Unitech and Danvir Group, Kothavalsa Infraventures, GMR Enterprises Private Ltd. as well as SREI founders Hemant Kanoria and Sunil Kanoria.

The applications filed before the NCLT are presently pending consideration, it added.

BDO India has found several fraudulent transactions in the company, including 820.05 crore rupees last week.

(Note: $1 = 82.7856 Indian rupees)