The Reserve Bank of India-appointed administrator for the insolvent Srei firms has received transaction auditor reports from BDO India which indicate that there were certain transactions which were fraudulent in nature under the erstwhile management and the total impact of these transactions amounted to over Rs 2,000 crore.
According to the transaction auditor reports, three entities — Shristi Group, Samsara Energy (earlier known as Quippo Energy) and Viom Infra Ventures (earlier known as Quippo Infrastructure) — were involved in the fraudulent transactions during 2017-18 to 2020-21. The monetary impacts of these transactions caused by disbursements made to Shristi Group, Samsara Energy and Viom Infra Ventures were Rs 1,415.22 crore, Rs 284.71 crore and Rs 433.81 crore, respectively, Srei Infrastructure Finance informed in three separate stock exchange filings on Thursday.
Notably, insolvency proceedings against Srei Infrastructure Finance (SIFL) and its subsidiary Srei Equipment Finance (SEFL), two NBFCs, commenced from October 2021 after the insolvency petitions, filed by the RBI, had been approved by the Kolkata bench of the National Company Law Tribunal (NCLT).
Rajneesh Sharma, former CGM of Bank of Baroda, took charge of the two Srei companies after the central bank had come down heavily on both the companies over governance issues and superseded the boards of directors.
The administrator, Sharma, obtained assistance from BDO India LLP to conduct investigation of the affairs of the companies in respect of transactions qualified under Sections 43 to 51, and Sections 65 and 66 of the IBC. The administrator received reports from BDO, indicating that there were certain transactions which were fraudulent in nature.