Vijaya Bank on Monday said it has an exposure of Rs189cr to three Abhijeet Group companies and another Rs719.2-mn to Abhijeet Projects Ltd, which is currently under investigation for a fraud. The statement was in response to a stock exchange query on a media report titled “ED attaches Rs38.07cr against Abhijeet Group in bank fraud case”.
The bank clarified that all loans given to the group companies have already been classified as non-performing assets (NPAs) and been provisioned for.
In August 2017, the Central Bureau of Investigation (CBI) had charged Abhijeet Projects’ directors Manoj Jayaswal, Abhishek Jayaswal, among others, for defrauding Vijaya Bank and Canara Bank — to whom they owe another Rs219cr.
"The impact of the matter reported in the article will be to the extent of eventual recovery, if any, that may arise; however, it is not material," Canara Bank said in its clarification on the media report.
Both Canara Bank and Vijaya Bank had, in August 2015, filed complaints after observing a diversion of the loan amount. Post this, the banks also filed a joint suit against Abhijeet with the Debt Recovery Tribunal in September 2015.
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