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India's Rs 3.97 Trillion Puzzle: Banks' Fierce Battle to Recover Funds from Pre-Insolvency Scams!

Banking/Finance

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Published on 24th November 2025, 3:40 AM

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Author

Abhay Singh | Whalesbook News Team

Overview

Indian lenders are escalating efforts to claw back Rs 3.97 trillion lost through questionable transactions before companies entered insolvency. These 'PUFE' dealings, similar in value to total IBC recoveries over a decade, involve asset stripping and fund diversion. While banks are actively pursuing these cases, actual recoveries remain challenging due to complexities and delays.