Another scam at PNB, as the bank declares over Rs 2,000 cr fraud in IL&FS Tamil Nadu Power account

The Punjab National Bank (PNB) has reported a borrowal fraud of Rs 2060.14 crore in the non-performing account (NPA) of IL&FS Tamil Nadu Power at the Extra Large Corporate Branch in Delhi zonal office.

The bank has already made provisions amounting to Rs 824.06 crore, as per prescribed prudential norms.

"A fraud of Rs 2060.14 crore is being reported by the bank to the RBI in the accounts of the company. The bank has already made provisions amounting to Rs 824.06 crore, as per prescribed prudential norms," the state-owned lender said in a disclosure.

The fraud comes as the lender already dealing with the Nirav Modi scam worth Rs 14,000 crore. 

IL&FS Tamil Nadu Power

It is a special purpose vehicle set up by Infrastructure Leasing & Financial Services Ltd (IL&FS) under its energy platform for implementation of thermal power projects at Cuddalore in Tamil Nadu.

In February this year, another bank, Punjab & Sind Bank (PSB) had said that it had declared IL&FS Tamil Nadu Power as bad asset with dues of over Rs 148 crore, and reported it to the Reserve Bank of India (RBI).

As per the bank`s policy on determination and disclosures on material events, PSB said it has declared this non-performing account (NPA) as a fraud account.

"It is informed that an NPA account, viz IL&FS Tamil Nadu Power Company Ltd with outstanding dues of Rs 148.86 crore has been declared as fraud and reported to RBI today as per regulatory requirement," the lender had said in a regulatory filing.

(With IANS inputs)