Indian Bank declares IFIN account as fraud with over Rs 408 cr outstanding

In October, Punjab and Sind Bank had also reported the account of IFIN as fraud with outstanding dues of over Rs 561 crore to the RBI

Indian Bank said on Tuesday said that it has reported to the Reserve Bank of India (RBI) the account of IL&FS Financial Services (IFIN) as fraud with outstanding dues of over Rs 408 crore.

In October, Punjab and Sind Bank had also reported to the RBI the account of IFIN as fraud with outstanding dues of over Rs 561 crore. 

In September 2018, the government ordered an SFIO probe into the affairs of IL&FS and its subsidiaries. In October, the same year, the National Company Law Tribunal (NCLT) suspended the erstwhile board of IL&FS amid the financial turmoil.

On the resolution process proposed by the new board of directors of IL&FS, the company said it has submitted several progress reports and updates to the NCLT.

The scam at the IL&FS group came to light in September 2018 after several group entities defaulted on repayments due to severe liquidity problems. Later, the government superseded the board of directors to revive the ailing group.