BDO India Finds More Fraudulent Transactions In SREI Equipment

SREI Equipment Finance Ltd.’s transaction auditor BDO India identified more fraudulent transactions of 223.49 crore rupees ($27 million) in the company.

The SREI Group company, which is undergoing insolvency resolution, said its administrator has filed an application against Delhi International Airport Ltd. (DIAL), SREI Infrastructure Finance Ltd. as well as SREI founders Hemant Kanoria and Sunil Kanoria before the Kolkata bench of the National Company Law Tribunal (NCLT) on 14 February based on the transaction auditor’s report.

The transactions, which occurred between FY19 and FY22, were related to the payment of security deposit to the company’s parent SREI Infrastructure and receipt of inter-corporate deposits from DIAL, SREI Equipment said in a stock exchange announcement.

SREI Equipment said the administrator’s application questions the transactions, which took place under the company’s erstwhile management. Total impact of the transactions, excluding interest, amounts to 223.49 crore rupees, it added.

The application filed before the NCLT is presently pending consideration, according to the statement.

BDO India has previously found several fraudulent transactions in the Kolkata-based company.

The government-backed National Asset Reconstruction Company Ltd. (NARCL) has emerged as the winner to acquire SREI Group’s bankrupt entities, according to the Press Trust of India.

(Note: $1 = 82.8391 Indian rupees)

(Send feedback to editor@cornerofficejournal.com)