Srei Group Cos' erstwhile founder alleges fraud report as baseless

New Delhi: Hemant Kanoria, the erstwhile promoter of Srei Group of companies facing insolvency, has said that reports by transactions auditor BDO India alleging fraudulent transactions in the past are "factually baseless".

Kanoria is the erstwhile founder of Srei Infrastructure Finance Ltd (SIFL) and its subsidiary firm Srei Equipment Finance Ltd (SEFL). Both the companies are now under the administrative control of the Reserve Bank of India (RBI) since October 2021, following disbanding of the then management on governance concerns and defaults. In a letter addressed to Rajneesh Sharma, administrator of SEFL and resolution professional for Srei Group of companies, Kanoria said stock exchange filings by SEFL and reports of transaction audit firm BDO have been conducted in a opaque manner without taking inputs either from the "undersigned" or from the targeted entities.

"The subject letter issued under your instructions, by its tone and tenor is not at all an intimation, rather it clearly declared transactions of SIFL as fraud, without awaiting the examination, adjudication by the adjudicating authority. This is clearly an act of overreach on your part and also contumacious in nature. "Such allegations are wholly and factually baseless and have not been made in a responsible manner, maligning the reputation and which will consequently derail the entire CIRP process of the company," he alleged in the letter.