The buzz of the country is now all about the recent revelation of Rs 11,400 crore scam. The state-owned PNB has spotted a USD 1.77 billion (about Rs 11,400 crore) scam where billionaire jeweler Nirav Modi allegedly assimilated fraudulent letters of undertaking from the Brady House branch of the bank in south Mumbai to secure overseas credit from other lenders.
The Enforcement Directorate (ED) on Thursday steered raids on jeweler Nirav Modi's properties in Mumbai, Surat and Delhi. A case of money laundering has also been lodged against Nirav Modi and others. In a statement issued to exchanges, Punjab National Bank on Wednesday said it has detected some fraudulent and unauthorized transactions in one of its branches in Mumbai for the benefit of a few select account holders with their apparent involvement. "Based on these transactions other banks appear to have advanced money to these customers abroad. In the Bank these transactions are contingent in nature and liability arising out of these on the Bank shall be decided based on the law and genuineness of underlying transactions," it said.
PNB has suspended 10 officers over the Rs 11,400 crore scam and raised the matter to CBI for further investigation. According to media reports, Nirav Modi left the country on January 1 weeks before the CBI received a complaint from PNB on January 29.
It seems this scam is getting denser with the amount it involves to balance out.