PNB reports another NPA scam of Rs 38 billion, after the massive Nirav Modi fraud last year
Now there is one more fraudlent system detected but from the same Punjab National Bank reported the this to the Reserve Bank of India.
The fraud took place at its Chandigarh branch, and in its Hong Kong and Dubai offices.
Post Nirav modi , this new mega scam happend Punjab National Bank and they disclosed another incident of fraud amounting to Rs 38 billion ($555 million), roughly one year after it suffered through the country’s costliest banking scandal.
The new case relates to the non-performing assets of insolvent Indian firm Bhushan Power & Steel Ltd.,
PNB reported the fraud to the Reserve Bank of India and made provisions worth 19.3 billion rupees.
PNB said Bhushan misappropriated bank funds and manipulated account books to raise money from consortium lender banks.
A vast majority of the fraud took place at PNB’s Chandigarh branch, and also involved offices in Hong Kong and Dubai.
The bank said it expects a “good recovery” from the insolvency case, which is currently before the National Company Law Tribunal.
It is to be noted nearly 14000 Crores Rupees ( $2 billion scandal) was allegedly perpetrated by jeweler-to-the-stars Nirav Modi, who was arrested by U.K. police at the request of Indian authorities and is embroiled in an extradition process.
IN UK Modi denies wrongdoing. However The sheer size of the fraud at the bank, as well as the jeweller’s presence in a large delegation at a Davos photo opportunity alongside Prime Minister Narendra Modi, fuelled accusations that the ruling party took a lax approach to the country’s globe-trotting industrialists.
