MUMBAI: A consortium of lenders has given Punjab National Bank (PNB) the mandate to begin bankruptcy proceedings against Bhushan Power and Steel, one of the largest defaulters among the 12 companies identified by the Reserve Bank of India. The company, promoted by Sanjay Singhal, has outstanding loans of more than Rs 55,000 crore and is being investigated by the Serious Fraud Investigation Office (SFIO) for possible diversion of funds.
Some of the large consultants made presentations to lenders for being selected as the interim resolution professional (IRP), said a bank official present at the meeting.
Subsequently, lenders discussed the various resolution plans. With this, lenders have given mandates to lead banks to initiate insolv…
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