First & Foremost Asian Weekly in Europe
R
Vol 46 Issue 41
24th Febuary to 2nd March 2018
Let noble thoughts come to us from every side 80p
PNB STRIPPED OF £1.15 BN
In yet another banking fraud, India's second-largest lender Punjab National Bank (PNB) revealed that it has detected “fraudulent and unauthorised” transactions worth over £1.13 billion at one of its Mumbai branches. It revealed transactions by billionaire jeweller Nirav Modi and related entities. In a complaint to the Central Bureau of Investigation (CBI), PNB said that Modi and companies linked to him conspired with its officials to get guarantees or Letters of Undertaking to help fund buyer's credit from other overseas banks. PNB alleged that the funds, that were ostensibly raised for the purchase and sale of diamonds, were not used for that purpose. An extensive inquiry revealed that the fraud extended past PNB to other lenders like the State Bank of India, Union Bank, Axis Bank Ltd. and Allahabad Bank. PNB Managing Director Sunil Mehta said
that, “The bank's £1.13 billion scam had begun way back in 2011, only to be detected on January 3 this year. We detected the fraud on January 3. We got to know that 2 of our employees did some unauthorised transactions. The bank initiated criminal action against our staff members.” Addressing the media,
SEE INSIDE
ED has seized so far:
200 shell firms and benami assets £567.4 mn- worth Diamonds,
Trudeau in India to mend relations
Gold jewellery and other stones...
29 properties and 105 bank accounts India, Iran sign 9 pacts
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Nirav Modi Mehta said that the bank lodged a complaint with the CBI on January 29, after which, the agency registered an FIR on the next day. “In response to our registered FIR, raids are being conducted on involved groups and establishments, documents and records are being seized.” He also stressed that the bank has the “capabili-
ty and capacity” to overcome the crisis, adding that steps are being taken to protect financial interest of banks adding that the government too is monitoring the situation on a “day to day” basis. “This is a standalone incident. It has taken place only in one of our branches.” Agencies were quick on
their feet this time. The CBI and other enforcement agencies conducted actions to make sure no time was lost. In lessons that were seemingly learnt from the 2016 Vijay Mallya mishap, the BJP government was having none this time. Continued on page 26
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