PNB detects $1.77 billion worth of fraudulent transactions, CBI probe ordered

Mumbai: State-run Punjab National Bank has reported some fraudulent and unauthorized transactions, worth $1.771 billion (over Rs.11,270 crore) from one of its branch in Mumbai.
In a regulatory filing, PNB said, “The Bank has detected some fraudulent and unauthorized transactions in one of its branch in Mumbai for benefit of few select account holders with their apparent connivance. Based on these transactions other banks appear to have advanced money to these customers abroad. In the Bank these transactions are contingent in nature and liability arising out of these on the Bank shall be decided based on the law and genuineness of underlying transactions. The quantum of such transactions is $1771.69 Million (approximately). The matter is already referred to law enforcement agencies to examine and book the culprits as per law of the land. The Bank is committed to clean and transparent banking.”
Earlier this month, the Central Bureau of Investigation (CBI) booked billionaire diamond jeweler Nirav Modi, his wife, brother and his maternal uncle Mehul Choksi in connection with a Rs.280 crore cheating case after it received a complaint from PNB.
According to the complaint filed by the Bank, two of its employees had “fraudulently” issued eight letters of undertakings (LoUs) and “transmitted SWIFT instructions to the overseas branches of Indian Banks” to raise buyers credit of Rs.280 crore for Modi’s firms without “making entries in the bank system.”
The bank requested CBI to issue a look-out notice against all of the alleged accused to ensure that they do not leave the country “to avoid the process of law.”
PNB closed Wednesday 9.8% down at Rs. 145.80 on the BSE, while the 30-share Sensex ended the day marginally down at 34,155.

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