Credit Risk Related Party Risk

Identifying All Related Parties and Red-flags Key to Avoid Loan Frauds

Indian banks have reported 2,253 cases of frauds worth Rs 35,061 crores during the first half of the financial year 2022, according to the Reserve Bank of India (RBI).

Among other things, investigations in the loan fraud cases by the government agencies revealed that the promoters have used the related entities for diversion of funds or transfer of profits through various means such as intra-group loans on favorable terms, over or under-invoicing of transactions, etc.

The Reserve Bank of India (RBI) has also raised concerns over the rise in such related-party transactions.

Amukha has introduced Related Parties Identifier (RPI) to manage the risk arising from related parties. Our RPI application:
#1. Identifies Related Parties (incl. Both Directly and Indirectly Associated Entities)
#2. Screens Related Entities on 60+ Negative Alerts
#3. Measures the Underlying Risk

Case study: Mumbai International Airport Ltd (MIAL)
On Jul. 1, 2020, CBI booked Venkata Krishna Reddy Ganapati, the chairman of the GVK Group of Companies, and his son G V Sanjay Reddy, Managing Director of Mumbai International Airport Ltd among others for alleged irregularities to the tune of Rs 705 crore in running of the airport.

CBI charge sheet unveiled many names of individuals and entities who were related parties. For more details, please click here.

Our Related Parties Identifier nailed down the related parties for the company “Mumbai International Airport Ltd” as provided below:

Amukha has the capability to identify related parties, screen such entities on negative alerts, measure the underlying risk and thereby help the banks to take appropriate decisions on accounts with fraudulent behavior.  

To know more about Amukha Related Parties Identifier (RPI)application, please get in touch with us at

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: