homefinance NewsDelhi Police files FIR against Lakshmi Vilas Bank on charges of cheating and criminal conspiracy

Delhi Police files FIR against Lakshmi Vilas Bank on charges of cheating and criminal conspiracy

The Delhi police on Thursday registered a first information report (FIR) against directors of the Lakshmi Vilas Bank (LVB) for offences of cheating, criminal breach of trust by banker, criminal misappropriation and criminal conspiracy.

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By CNBC-TV18 Sept 26, 2019 8:33:23 PM IST (Updated)

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Delhi Police files FIR against Lakshmi Vilas Bank on charges of cheating and criminal conspiracy
The Economic Offences Wing (EOW) of the Delhi police on Thursday registered a first information report (FIR) against directors of the Lakshmi Vilas Bank (LVB) for offences of cheating, criminal breach of trust by banker, criminal misappropriation and criminal conspiracy.

The FIR is based on a complaint filed by Religare Finvest Limited (RFL).
"The FIR is based on a complaint filed by M/s. Religare Finvest Limited (RFL) pertaining to adjustment of their deposits to the dues of M/s. RHC Holding Pvt. Ltd & M/s. Ranchem Pvt Ltd. The same is received at Bank's end on 25/09/2019. The Bank is considering appropriate legal measures to counter the same," Lakshmi Vilas Bank said in a BSE filing.
In May this year, Religare Enterprises had said that Lakshmi Vilas Bank misappropriated four fixed deposits of Religare Finvest worth Rs 791 crore, which was one of the major reasons for the group entity's terrible financial health.
"The new management discovered that one of the major reasons for RFL's terrible financial condition was the misappropriation by LVB of monies due to RFL on account of four fixed deposits placed by it with LVB amounting to approx Rs 791 crores (including interest accrued on Rs 750 crores of principal amount)," Religare Enterprises said in a BSE filing.
Such misappropriation caused a massive unlawful loss to RFL and consequently to all its stakeholders, including the public shareholders, it added.
The filing also said the commercial suit for recovery pending adjudication before the Delhi High Court is reserved for order on an interim application filed by RFL against LVB.

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