Power Cos retort payments regular to srei, so how fraud.
Strangely the Administrator of Srei companies has sent out a communication to Stock exchanges yesterday mentioning that some power cos have fraudulently availed of loans based on the initial transaction audit report BDO.
Sources close to Kanorias have said that the methodology again being adopted by BDO,auditor in collusion seems to be suspicious due to the haste and opaque approach.
The moot question is why the due process of law and principles of natural justice cannot be followed but the reports have to be submitted surreptitiously.
Again protracted legal battle will begin with BDO,which will derail the resolution process.source also mentioned that when the resolution is just round the corner why are the constituents trying to discourage the investors.
Earlier also the actions taken by the auditors have been smacking of opaque processes and therefore embroiled in legal battles.
The Courts should intervene to ensure that a transparent process where all sides are given an opportunity to put across their views and contentions are encouraged. After which only the Courts can decide to declare an account as fraud.
It seems that in our country anyone can be declared by anyone as fraud and then the other guy keeps on defending itself and his reputation forever. The banks need to act in a more balanced and judicious manner.