PNB declares Rs 2,060 cr fraud at IL & FS TN Power

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

IL&FS Tamil Nadu Power 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.

Earlier, the Punjab & Sind Bank (PSB) had said on February 15 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.