Home / Business and Economy / Canara Bank Recovers ₹510 Cr After DRT Order
Canara Bank Recovers ₹510 Cr After DRT Order
1 Sep
Summary
- Canara Bank recovered ₹510 crore from Rajesh Exports.
- A debt recovery tribunal ordered the deposit of funds.
- SEBI is investigating Rajesh Exports for financial misrepresentation.
Canara Bank has fully recovered ₹510 crore in dues from Rajesh Exports. The recovery was mandated by a debt recovery tribunal, which ordered the deposit of funds to prevent property seizure.
This action by Canara Bank followed Rajesh Exports' attempts to block other recovery avenues, including those under the bankruptcy code. The account had become non-performing in 2020, leading to DRT admission in 2021.
While the company secured a stay on most recovery actions from the Karnataka High Court, the DRT ruled in the bank's favor after nearly six years. Canara Bank was the primary creditor for the Bengaluru-based exporter.
Rajesh Exports is currently under investigation by the Securities and Exchange Board of India (SEBI) for alleged financial misrepresentation and non-cooperation.
