SREI Group Accused of ₹2,434 Cr PNB Loan Fraud

• Punjab National Bank (PNB) reported a ₹2,434 crore loan fraud by SREI Group, involving Srei Equipment Finance Limited (SEFL) and Srei Infrastructure Finance Limited (SIFL).
• The fraud is classified as 'borrower fraud,' indicating misrepresentation of facts and misuse of loan funds.
• SREI, once a major infrastructure financier, defaulted on approximately ₹28,000 crore, leading to RBI superseding its board in October 2021.
• A forensic audit uncovered irregularities such as fund transfers to related parties and loan evergreening to conceal bad loans.
• PNB has fully provisioned for the entire fraudulent amount, and SREI companies are now under National Asset Reconstruction Company (NARCL) via the IBC process.

Why It Matters: Former infra leader SREI faces ₹2,434 Cr PNB fraud; PNB fully provisioned.