Mumbai, June 11 : The lenders of Vidarbha Industries Power Ltd. (VIPL), a subsidiary of Reliance Power, have raised multiple queries on CFM Asset Reconstruction Pvt Ltd 's bid. The banks have asked the Ahmedabad-based asset reconstruction company, CFM ARC, which is under the Income Tax & RBI scanner for alleged malpractices and business misconduct, to explain the source of funds or how it plans to finance the proposed acquisition of VIPL. VIPL has 600 MW power generation units in Butibori, Nagpur. According to banking sources, the overall Balance Sheet size of CFM is approx Rs 1,000 crore, with equity of less than Rs 200 crore, and the balance is funded by debt. CFM does not have the wherewithal to conclude a large transaction of over Rs 1,000 crores on all cash basis, a source revealed. The ARC has made an all cash offer of Rs 1,120 crore to the lenders of VIPL. The lenders of VIPL have also sought information and clarity from CFM on the ongoing investigation against it by the Income Tax authorities and the RBI. They have asked CFM to get a confirmation from the RBI that its ARC license is valid and the company is allowed to bid. Notably, CFM ARC is among the four ARCs who have been issued a show cause notices by the RBI, post its special audit, following the IT raids on the companies. The VIPL lenders are also keen to know from CFM how they plan to run the power units of VIPL, which have no PPA (Power Purchase Agreement) and FSA (Fuel Supply Agreement). The CFM ARC also has no experience in the power sector. Recently, Reliance Power has also made a One Time Settlement (OTS) proposal to the lenders of Vidarbha Industries (VIPL) to settle its debt. Reliance Power's all cash offer of Rs 1200 crores is supported by Varde Partners, Singapore, which is already an investor in the Reliance Infrastructure Ltd. Another bidder in the fray for VIPL is NARCL, who has offered Rs 1,150 crore to the VIPL lenders, but out of this only 15 per cent is payable in upfront cash, while the balance will be paid in interest free instalments, over the next 5 years. The Net Present Value of NARCL offer is only Rs 850 crore. /IANS