FE: Allahabad Bank reports Rs 688-cr fraud by SEL Manufacturing

18 July 2019: State-run Allahabad Bank on Wednesday reported a fraud of Rs 688.27 crore by SEL Manufacturing. The Chandigarh bench of the National Company Law Tribunal (NCLT) initiated insolvency resolution proceedings against the Ludhiana-based textile company last year.

“We have to inform that a fully provided Non-Performing Account, viz. SEL Manufacturing Ltd (SELM) with outstanding dues of Rs 688.27 crore for which NCLT proceedings are in progress, has also been declared as fraud and reported to RBI as per regulatory requirement,” Allahabad Bank said in a stock exchange filing.

Notably, the lender on last Saturday reported a fraud of Rs 1,774.82 crore by Bhushan Power and Steel (BPSL), a week after Punjab National Bank had declared a fraud of Rs 3,805.15 crore by the same company for which JSW Steel is the highest bidder.  JSW Steel’s bid to acquire BPSL under insolvency resolution process is awaiting approval of the Delhi bench of NCLT.

In April 2018, the Chandigarh bench of NCLT had admitted an insolvency petition filed by SBI against SEL Manufacturing and initiated CIRP. Following this, the company had appealed against the admission of the petition and appointment of the interim resolution professional (IRP) with National Company Law Appellate Tribunal (NCLAT).

“The corporate insolvency resolution process (CIRP) has since been kept in abeyance vide order dated June 22, 2018 of High Court of Punjab & Haryana. The matter since been transferred to Supreme Court and is pending for adjudication,” SELM said after declaring its June quarter results on July 17.

The Financial Express reported

Categories: Corporate Governance, General News, India Bankruptcy

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