Lakshmi Vilas Bank misappropriated RFL's 4 FDs worth Rs 791 cr: Religare Enterprise

Religare Enterprises Thursday said Lakshmi Vilas Bank (LVB) misappropriated four fixed deposits of Religare Finvest (RFL) worth Rs 791 crore, which was one of the major reasons for the group entity's terrible financial health.

"The new management discovered that one of the major reasons for RFL's terrible financial condition was the misappropriation by LVB of monies due to RFL on account of four fixed deposits placed by it with LVB amounting to approx Rs 791 crores (including interest accrued on Rs 750 crores of principal amount)," Religare Enterprises said in a BSE filing.

Such misappropriation caused a massive unlawful loss to RFL and consequently to all its stakeholders, including the public shareholders, it added.

The filing also said the commercial suit for recovery pending adjudication before the Delhi High Court is reserved for order on interim application filed by RFL against LVB.