The UK subsidiary of PNB is suing five Indians, one American and three companies in the UK high court. It claims they fraudulently misled the bank to lend them tens of millions of dollars. They now owe the bank approximately $37 million in unpaid loans.
PNB (International) Ltd. has seven branches in the UK, whose parent bank is PNB, is suing the individuals and companies for “fraudulent misrepresentation in respect of numerous loans” and “breach of contract”,according to its claim lodged with the high court. The loans were advanced, the bank states in in its claim, to “assist the financing of the construction of a lube oil re-refining unit in South Carolina and the development and sale of wind energy projects.”
The bank states, “The claimants’ money was siphoned off by directors and guarantors of the borrowers” in a “scheme that was fraudulent from the outset.”
South Eastern Petroleum LLC (SEPL) : It operates oil recycling plants in the US, ($10m of which was lent by PNB and $7m by Bank of Baroda) and the bank states it believes “SEPL could now be impecunious” as it is in liquidation.
Pesco Beam Environmental Solutions : which specialises in engineered and manufactured systems for use in oil re-refining, and has a factory in Sriperumbudur, Chennai and a US subsidiary in Virginia in the USA, is the 100%-beneficial owner of SEPL. Pesco USA has itself defaulted on loans worth $13m, PNB states its claim, which is suing both Pesco Beam USA and and Pesco Beam India.
A Subramaniam, managing director of Pesco Beamand his brother Anantharam Shankar, its executive director, both both of whom reside in Chennai and Luke Staengl, the CEO of the US subsidiary are being sued.
Trishe Resources : a wind energy company in the US. In 2014 Trishe Wind in the US was declared insolvent and its total assets and liabilities transferred to Trishe Resources. PNB alleges Trishe Wind has defaulted on loans worth $10 million whilst Trishe Resources owes the bank $3 million.
PNB states that it advanced the money in dollars from London between 2011 and 2014 to four companies registered in the US — all operating in the renewable energy sector — namely South Eastern Petroleum LLC (SEPL), Pesco Beam USA, Trishe Wind and Trishe Resources.