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RBI receives report on forensic audit of 2 firms

Reserve Bank of India, which had entrusted investigations into bad debts of two companies, which were defaulters of bank loans, has recently received the report of these investigations. The investigations were carried out into the dealings of Surya Vinayak Industries and Deccan Chronicle Holdings, whose arrears in banks have become NPAs. The RBI has never in the past hired private investigators or forensic experts to carry out such inspections – in these cases, to look for any diversion of funds or errors on part of banks. The investigations lasted for about six months. The RBI is yet to initiate any action on the reports. Surya Vinayak Industries, a commodities firm based in New Delhi, has an NPA of about Rs 2,500 crore on the books of many public sector banks. Punjab National Bank, which was the lead banker to the company, had accused its directors of fraud and misappropriation. Media firm Deccan Chronicle Holdings has debt of about Rs 4,000 crore. Most of its creditors have categorised their exposure to the company as NPA. RBI can now launch more investigations if it suspected wrongdoing.

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