Indian bank detects scam worth US$1.77 billion
State-owned Punjab National Bank has alleged that a diamond merchant, his relatives and business partner carried out fraudulent transactions
India’s second biggest state-owned bank Punjab National Bank has reported to Bombay Stock Exchange (BSE) that it has found fraudulent transactions worth around Rs 110 billion (US$.177 billion) from one of its branches in Mumbai.
The bank stated in a BSE filing that a diamond merchant named Nirav Modi, his relatives and business partner Mehul Choksi had carried out fraudulent transactions and based on these, other banks had advanced money to these customers abroad, reports Business Standard.
The bank said it has referred the matter to law enforcement agencies to examine and book the culprits.
Earlier on February 5, PNB had claimed that it had come across suspected fraud amounting to Rs 2.8 billion (US$ 43.65 million) and reported the matter to law enforcement agencies.
It said two of its employees from one of its branches in Mumbai issued fraudulent letters of undertaking in connivance with firm belonging to Nirav Modi, his brother Nishal Modi, his wife Ami Nirav Modi and Mehul Choksi.
Acting on the complaint, India’s premier investigation agency Central Bureau of Investigation filed a case against businessmen Nirav, Ami, Nishal and Choksi.