HYDERABAD: A division bench of the Telangana High Court comprising Chief Justice Satish Chandra Sharma and Justice N Tukaramji recently upheld the decision of the Union Bank of India and consortium of banks declaring the accounts of Shree Saraiwwalaa Agri Refineries Ltd as fraud as per the provisions mentioned in Master Circular on Frauds issued by the Reserve Bank of India.
The consortium of banks led by Union Bank of India had given loan of Rs 675 crore between 2003 to 2015 to the firm. This loan was declared as a Non-Performing Asset (NPA) in 2018 and necessary steps were taken to find the underlying securities. The banks have filed an application before the Debt Recovery Tribunal (DRT) for Rs 617.41 crore and declared the company accounts as fraudulent.
The said company challenged the decision of the consortium of the banks in the High Court. After hearing both sides, the division bench upheld the decision of consortium of banks and dismissed the plea of the firm.