PNB fraud: 30 banks implicated says parliamentary committee report

A parliamentary committee report has listed 30 banks, both Indian and foreign, that are implicated in the Punjab National Bank (PNB) fraud case where jewellery tycoons Nirav Modi and Mehul Choksi are accused.

A parliamentary committee report has listed 30 banks linked to the PNB fraud case - Nirav Modi- Facebook

The government report by the Standing Committee on Finance, directed by the Ministry of Finance, has named a list of banks that are implicated in the ongoing PNB fraud case that is currently making waves in the Indian fine jewellery industry. The banks named include the Union Bank of India, State Bank of India, Axis Bank, and Allahabad Bank among others.

The 30 banks listed are believed to have lent money to Modi and/or Choksi’s companies based on fraudulently obtained letters of undertaking (LoUs) given out by employees at the PNB acting criminally in accordance with Modi ad Choksi. The report also calls for a wider probe into the matter, especially as both Modi and Choksi’s use of foreign-based companies makes matters more complicated.

The recapitalisation of the state banks implicated is currently a topic for discussion. The Congress member M Veerappa Moily, who heads the Standing Committee on Finance, recently said in a statement that doing this could be “throwing good money after bad” and so the matter is still up for debate. A total of 107 companies linked to Modi and Choksi are currently under investigation related to the PNB fraud case which, with the two main accused still out of the country, is far from over.

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