PNB detects new fraud in Mumbai, this one is worth Rs 9 Crore
PNB detects new fraud in Mumbai, This one is worth Rs 9 Crore Punjab National Bank (PNB) has uncovered a fresh fraud within the Mumbai branch at the centre of a similar alleged scam worth over $2 billion, confirms a complaint filed with the Central Bureau of Investigation (CBI). The case has been filed against executives of Chandri Paper and Allied Products, according to the complaint filed by PNB with the CBI. The newly uncovered scam raises fresh doubts about whether more such cases involving fraudulent guarantees lurk on the books of PNB. With immediate effect, the Reserve Bank of India (RBI) this week barred banks from issuing the letters of undertaking — the credit guarantee instrument at the heart of the fraud. That move followed revelations of what has been dubbed the biggest fraud in India's banking history, in which Nirav Modi and Gitanjali Gems were involved. In the latest case, the same set of bank officials were allegedly involved who took part in the Nirav Modi case. A PNB spokesman had no immediate comment. Chandri Paper could not immediately be reached for comment. -PTC News
