SREI Equipment Transaction Auditor Finds $17.3 Mln Fraudulent Loans

SREI Equipment Finance Ltd.’s transaction auditor BDO India found fraudulent transactions of 143.23 crore rupees ($17.33 million) as on 30 September 2021.

The amount is related to loan disbursements to BKM Mining Private Ltd. and Orissa Sponge Iron & Steel Ltd. by the company under the erstwhile management, the non-bank lender said in a stock exchange announcement. The transactions occurred between FY19 and FY21, it added.

SREI, which is undergoing insolvency resolution, said the total impact of the transactions, excluding interest, is 143.23 crore rupees.

The company said its administrator on 19 December filed an application before the Kolkata bench of the National Company Law Tribunal against BKM, Orissa Sponge Iron & Steel as well as SREI founders Hemant Kanoria and Sunil Kanoria.

BDO India has found several fraudulent transactions, including 546.32 crore rupees earlier this month, in the company.

(Note: 1$ = 82.6583 Indian rupees)