SBI puts off KSK Mahanadi Power NPA auction after I-T probe on ARCs

The lender has an exposure of Rs 4,100 crore in the firm and had set a reserve price of Rs 1,423 crore for selling the loan to any ARC, bank, NBFC or a financial institution

The State Bank of India has put off the sale of its non-performing asset loan of KSK Mahanadi Power scheduled on December 31 after the income tax department started an investigation against few asset reconstruction companies (ARCs).

SBI has an exposure of Rs 4,100 crore in KSK Mahanadi Power and the bank had set a reserve price of Rs 1,423 crore for selling the loan to any ARC, bank, NBFC or a financial institution.

The income tax department has initiated an investigation against several ARCs after it was found that several promoters are funding the ARCs via informal channels. After