Indian police have opened a probe into the directors of Laxmi Vilas Bank a customer accused them of misappropriating funds, the bank said late on Thursday.
Based on a complaint by Religare Finvest Company, the Economic Offense Wing of Delhi Police registered a case against Lakshmi Vilas Bank and lodged a complaint of Rs 790 crore.
The Religare Company had told the police that we had made a fixed deposit of Rs 790 crore in the bank, which was smuggled.
Police registered a case of betrayal, fraud, and fraud against the bank’s administrators.
India’s banks are also grappling with roughly $150 billion in stressed assets and the country’s non-banking finance companies are struggling with liquidity pressures.
Lakshmi Vilas said earlier this year it would merge operations with housing finance firm Indiabulls Housing Finance Ltd (IBHF) in a share-swap deal.
This was the scandal of another bank in the same week. Earlier on Tuesday, the Reserve Bank, at PMC Bank and banned any type of banking activity for the next six months. The after the PMC bank scandal another one Laxmi bank coming out with fraud cases.
It is not yet announced how many directors of Lakshmi Vilas Bank have filed a case against the police. But one thing remains to be determined is how the bank will have to answer how the fixed deposit of such a large amount has disappeared. There were reports that Lakshmi Vilas Bank is to buy Indiabulls in the near future.