The country's largest lender SBI today said it had classified Chennai-based jewellery firm Kanishk Gold Pvt Ltd (KGPL) as fraud account in November 2017.
The sanctioned aggregate limits of Rs 215 crore by SBI in a consortium arrangement has been classified by the bank as fraud on November 16, 2017 for having misrepresented the financial statements from 2009 and liquidated primary security, SBI said in a clarification sought for a news report by exchanges.
The matter has been reported to CBI for necessary action, SBI said. Further, the matter was reported to RBI on November 21, 2017.
On the matter of Nathella Sampath Jewelry Pvt Ltd (NSJPL), SBI said it had sanctioned Rs 250 crore loan to the company through a consortium, which was reported fraud on December 22, 2017 for misrepresenting financial statements from 2010 and liquidated primary security.
The matter of NSJPL has been reported to CBI for necessary action, SBI said.
Further, SBI said that the information published in the media report is not shared by the bank.