Corruption

After the largest ever loan fraud in Indian history, PNB says it has the capacity to recover

New Delhi: After detecting the largest ever loan fraud in Indian history, the Punjab National Bank on Thursday said that it has the capacity to recover.

The Bank, which is India’s third largest lender, on Wednesday detected fraudulent transactions worth $1,771.7 million (Rs.10,000 cr) in its Mumbai branch, resulting in a sharp decline in its share prices.

In the aftermath, the PNB shares have tumbled by 20 percent this week.

“This cancer that’s been going on since 2011, we have brought it out and we are resolving it,” PNB’s Chief Executive Sunil Mehta said at a press briefing, adding that the bank would honour all its commitments.

“If the entire onus is on us, we will take responsibility,” Mehta said, adding the bank has taken action to book culprits and protect its financial interests.

Nirav Modi, a billionaire jeweller and a diamond merchant is beleived to be at the center of the fraud, the bank has informed.

The Bank has asked the accused to come up with a formal repayment plan.

Earlier Modi’s jewelry stores and other business establishments were raided by the Enforcement Directorate in Mumabi and Delhi.

Modi, who has not spoken about the case so far, could not be reached for comment. His flagship company Firestar Diamond has said it had no involvement in the case.

Meanwhile, as Modi flees the country ,a blame game has began between BJP and the Congress as the ruling party says that the scam took place during UPA (United Progressive Alliance) time. On the other hand, Congress has attacked the BJP by saying that they allowed Modi to leave the country.

 


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