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Banks see another Vijay Mallya in Alok Industries, look to recover Rs 20,000 crore

May 9, 2016, 14:05 IST
Banks are now looking to recover a whopping sum of Rs 20,000 crore from debt-ridden textile company Alok Industries.
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The banks in India are looking to trace the use of loans. A forensic audit of Alok Industries will also be carried out by the lenders such as Grant Thornton and Chokshi & Chokshi, led by State Bank of India.

A senior banker told ET that Deloitte had stepped down as Alok Industries’ auditor soon after SBI officials held a meeting to discuss the financials of the textile firm.

An employee of the PR firm hired by Deloitte told ET, "As per our consistent policy, Deloitte does not comment on client confidential matters."
Surendra Jiwrajka, an executive director at Alok, told ET, "The reason for Deloitte's resignation was purely commercial in nature. The banks have never asked us for even a clarification thus far in this regard. There has never been any such mention in our accounts till date either. Besides, no auditor would take up the assignment if there were to be the existence of such a lacuna in the balance-sheet and even banks would not have supported us all the way they have so far."

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