PNB capable to deal with Nirav Modi fraud case

Mumbai (Maharashtra) [India], Feb 15 (ANI): Managing Director of Punjab National Bank (PNB) Sunil Mehta on Thursday said that the bank has the capability and capacity to deal with the situation arised due to jewellery designer Nirav Modi fraud case.

"In response to our registered FIR, raids are being conducted on involved groups' establishments; documents and records are being seized. Steps are being taken to protect the financial interest of banks," Sunil Mehta said while addressing the media.

"This is a standalone incident. It has taken place only in one of our branches," he added.

Earlier on Wednesday, the bank had confirmed fraudulent activities at its branches in Mumbai, worth transactions USD 1771.69 million for the benefit of some account holders.

Mehta said that the scam was started in 2011 and was detected in the third week of January this year, after which the PNB officials reported it to the concerned agencies.

Mehta further said that the Government of India is monitoring the situation and the bank is getting full support in nabbing the culprits.

PNB has also suspended 10 of its officials in connection with the case.

Modi had allegedly cheated the bank to the tune of Rs. 280.7 crore.

The Central Bureau of Investigation (CBI) had on Monday booked Nirav Modi, his brother Nishal Modi and the officials of PNB in this regard.

It has emerged that the fraudulently issued Letters of Undertaking (LoUs) from the Mumbai branch of PNB were in favour of Hong Kong branches of Allahabad Bank and Axis Bank, that helped facilitate Rs 280.7 crore fraud by Modi among others.

According to the official sources, Nirav Modi left the country on January 1.

CBI had received the complaint form PNB on January 28 and a case was registered in the case on January 31st. (ANI)

This story has not been edited. It has been published as provided by ANI