Private sector lender (LVB) Lakshmi Vilas Bank has informed the stock exchanges that the Economic Offences Wing, New Delhi, had filed an FIR under Indian Penal Code, 1860 (complaint for offences of cheating, criminal breach of trust by banker, criminal misappropriation and criminal conspiracy) against the directors of the board of Lakshmi Vilas Bank, Connaught Place, New Delhi, among others.
The first information report was registered based on a complaint filed by Religare Finvest Ltd. (RFL) pertaining to adjustment of their deposits to the dues of RHC Holding Pvt. Ltd. and Ranchem Pvt. Ltd., the lender said.
The bank further said that it was considering appropriate legal measures to counter the same.
RFL in a filing on May 16, had said : “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 the company on account of four fixed deposits placed by it with LVB amounting to around ₹791 crore (including interest accrued on ₹750 crore of principal amount), such misappropriation had caused a massive unlawful loss to the RFL and consequently to all its shareholders includng the public shareholders.”
LVB, however denied the allegations in its clarification later and alleged that RFL has been in a spree in filing false and frivolous proceedings. It was alleged that RFL was addressing false and frivolous letters to various entities and authorities claiming that the fixed deposits opened with the bank were not secured in favour of the bank for loans granted to group companies of RFL.
