In one of the biggest fraud cases happen in Indian banking, Punjab National Bank (PNB) informed stock exchanges on Wednesday that it has hit on misappropriation amount up to Rs 11,300 crore at one of its branches in Mumbai. Although the bank did not name any person or company, it had registered a complaint with CBI on January 31 naming billionaire diamond merchant Nirav Modi and a few others in a Rs 280 crore fraud.
The complaint also mentioned his wife Ami Modi, his brother Nishal Modi and his uncle Mehul Choksi, MD of Gitanjali Gems a listed company. Two PNB officials, Gokulnath Shetty and Manoj Kharat, also named.
The Modi family and Choksi are partners in three businesses
The Modi family and Choksi are partners in three businesses.The Enforcement Directorate has also initiated a money laundering case against Modi and his family. The news sent PNB stocks tumbling nearly 10% lower on the Bombay Stock Exchange. Indian banks must put certain stats when anyone applies for a loan.
The fraud is almost eight times the bank’s 2016-17 profit and nearly a third of its market cap on Wednesday’s closing price. In a matter of a few days, the scale of the fraud has grown from Rs 280 crore to over Rs 11,300 crore.The alleged irregularities not only just affect the PNB, which has shown a sign of recovery in previous months. Fraud also effects the percentage of profit bank of getting.
Financial services secretary Rajiv Kumar said “The finance minister took a proactive step on asking the lender to report the matter to CBI and Enforcement Directorate so that action can take quickly. If these frauds happen will it not affect Indian economy? A Certain rule will be there so that everyone has to follow it does not matter whether he is rich or poor.
If the government want to stop this fraud not only in banks anywhere then put some strict rules and also monitor weather everyone follows it or not and if not punish must be given. It will be universal “one for all”. Yes, it will take time to clear loans but for the long term, it will be beneficial for everyone.Hope, Government make certain criteria so that no fraud happen in upcoming future