Insolvency proceedings against Lanco begins

Banks led by IDBI Bank have initiated an insolvency proceeding against Lanco Infratech, the first among the 12 stressed accounts that were identified by the RBI. The company is controlled by a former Congress party Parliamentarian and owes banks Rs 17,000 crore while its market value is a put at a measly Rs 613 crore.
The IDBI Bank has a fund based exposure of Rs 7,799 crore and non-fund based exposure of Rs 3,349 crore as on March 2016.
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