Srei's Hemant Kanoria to challenge report alleging fraud at group firm

Transaction auditor's methodology 'opaque' and legal fight over it could derail resolution process, say sources close to Kanoria.

Hemant Kanoria, the founder of Srei, will challenge a report by a transaction auditor alleging fraudulent transactions during FY20 and FY21 at a group company.

“We will be seeking legal recourse. We are exploring all legal channels,” said sources close to Kanoria about the report that said the transactions had a monetary impact of more than Rs 3,025.73 crore.

The Reserve Bank of India (RBI), in October 2021, superseded the boards of Srei Infrastructure Finance (SIFL) and Srei Equipment Finance Ltd (SEFL) on governance concerns and defaults and started a corporate insolvency resolution process (CIRP).

SEFL told exchanges on Monday