Religare Finvest Ltd (RFL), a wholly owned subsidiary of Religare Enterprises Ltd (REL), has commissioned an investigation into siphoning-off of funds by the erstwhile promoters of the company.
“Pursuant to the terms agreed with respect to the recovery proceeds of Corporate Loan Book (CLB) portfolio and FDs misappropriated by Lakshmi Vilas Bank (LVB) (now DBS), under the Upside Sharing Agreement signed by RFL with the lenders, it is imperative for RFL to keep pursuing recovery of the siphoned off funds. Accordingly, to aid RFL to recover such funds, RFL has commissioned the investigation”, said a REL filing with the stock exchanges on Saturday.
RFL had in March this year completed its one-time settlement with 17 lenders.
As part of the Upside Sharing Agreement with its lenders, RFL has to share the proceeds of recovery from two of its non-core assets — CLB and fixed deposit with Laxmi Vilas Bank (now DBS), with the lenders.