State-owned Punjab National Bank (PNB) on March 15 reported a fraud of Rs 2,060 crore in the non-performing account (NPA) of IL&FS Tamil Nadu Power Company Limited (ITPCL).

The bank said it has already made provisions amounting to Rs 824.1 crore, according to prescribed norms.

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“A fraud of Rs 2060.14 crore is being reported by the bank to the RBI in the accounts of the company. The bank has already made provisions amounting to Rs 824.06 crore, as per prescribed prudential norms,” PNB said in a regulatory filing.

In February, Punjab and Sind Bank declared IL&FS Tamil Nadu a fraudulent account with outstanding dues of Rs 148 crore. According to the bank’s policy on determination and disclosure of material events, PSB said it has declared this non-performing account (NPA) as a fraud account.

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The lender in a regulatory filing said, “It is informed that an NPA account, viz IL&FS Tamil Nadu Power Company Ltd with outstanding dues of Rs 148.86 crore has been declared as fraud and reported to RBI today as per regulatory requirement,” the lender said.

The debt-ridden Infrastructure Leasing & Financial Services Ltd (IL&FS) had set up the company as a special purpose vehicle (SPV) under its energy platform IEDCL for implementation of thermal power projects at Cuddalore in Tamil Nadu.

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According to the affidavit submitted by IL&FS before the National Company Law Appellate Tribunal (NCLAT), as of April 2020, ITPCL owed more than Rs 6,700 crore to its lenders and close to Rs 900 crore to IL&FS group companies. IL&FS had earlier attempted to restructure ITPCL, including selling its stake to the Tamil Nadu government and other stakeholders, but was unsuccessful.

On Wednesday, PNB shares opened 0.14% higher at Rs 36.05 on the National Stock Exchange (NSE).