Take the pledge to vote

For a better tommorow#AajSawaroApnaKal
  • I agree to receive emails from News18

  • I promise to vote in this year's elections no matter what the odds are.
  • Please check above checkbox.

    SUBMIT

Thank you for
taking the pledge

Vote responsibly as each vote counts
and makes a diffrence

Disclaimer:

Issued in public interest by HDFC Life. HDFC Life Insurance Company Limited (Formerly HDFC Standard Life Insurance Company Limited) (“HDFC Life”). CIN: L65110MH2000PLC128245, IRDAI Reg. No. 101 . The name/letters "HDFC" in the name/logo of the company belongs to Housing Development Finance Corporation Limited ("HDFC Limited") and is used by HDFC Life under an agreement entered into with HDFC Limited. ARN EU/04/19/13618
LIVE TV DownloadNews18 App
News18 English
News18 » Business
1-min read

PNB Detects New Fraud at Infamous Mumbai Branch, This Time Worth Rs 9 Crore

The new alleged fraud of around Rs 9 crore involves officials of a little known company called Chandri Paper and Allied Products Pvt Ltd, the Central Bureau of Investigation said in the complaint posted on its website.

Reuters

Updated:March 15, 2018, 12:21 PM IST
facebookTwitterskypewhatsapp
PNB Detects New Fraud at Infamous Mumbai Branch, This Time Worth Rs 9 Crore
File photo of a Punjab National Bank branch.
Loading...

New Delhi: Punjab National Bank (PNB) has uncovered more suspected credit guarantee fraud within the Mumbai branch at the centre of a similar alleged scam worth over $2 billion, according to a complaint filed with the Central Bureau of Investigation (CBI).

The alleged embezzlement of around Rs 9 crore involved executives of a little known company called Chandri Paper and Allied Products, according to the complaint filed by PNB with the CBI.

The newly uncovered scam raises fresh doubts about whether more such cases involving fraudulent guarantees lurk on the books of PNB, the second biggest state-run lender, or other government-owned Indian banks.

The Reserve Bank of India (RBI) this week barred banks from issuing the letters of undertaking — the credit guarantee instrument at the heart of the fraud — with immediate effect.

That move followed revelations of what has been dubbed the biggest fraud in India's banking history, in which two jewellery groups allegedly colluded with bank employees to get fraudulent letters of undertaking which helped them raise credit of about $2 billion from overseas branches of Indian banks.

In the latest case, PNB told the CBI two officials at its Brady House branch in Mumbai "entered into a criminal conspiracy" with the directors of Chandri Paper in April 2017 to fraudulently issue two letters of undertaking for the company to raise the money.

According to the complaint, the same set of bank officials were allegedly involved in both cases.

A PNB spokesman had no immediate comment. Chandri Paper could not immediately be reached for comment. The bank's shares, which have plummeted nearly 40 percent since the first fraud was revealed, were little changed in morning trading on the Bombay Stock Exchange (BSE) on Thursday.

Get the best of News18 delivered to your inbox - subscribe to News18 Daybreak. Follow News18.com on Twitter, Instagram, Facebook, TikTok and on YouTube, and stay in the know with what's happening in the world around you – in real time.

Subscribe to Moneycontrol Pro and gain access to curated markets data, trading recommendations, equity analysis, investment ideas, insights from market gurus and much more. Get Moneycontrol PRO for 1 year at price of 3 months. Use code FREEDOM.

| Edited by: Nitya Thirumalai
Read full article
Loading...
Next Story
Next Story

Also Watch

facebookTwitterskypewhatsapp
Most Active
Company Price Change %Gain
Maruti Suzuki 6,190.95 3.48
Indiabulls Hsg 521.40 -2.88
Yes Bank 71.20 -7.11
Reliance 1,275.95 -1.29
Mahanagar Gas 848.60 7.83
Company Price Change %Gain
Maruti Suzuki 6,198.75 3.75
United Spirits 578.10 -1.36
HDFC 2,090.80 -1.10
Indiabulls Hsg 521.45 -2.81
HDFC Bank 2,222.00 0.69
Top Gainers
Company Price Change %Gain
Maruti Suzuki 6,190.95 3.48
Tata Motors 123.85 2.52
Infosys 792.75 1.94
HCL Tech 1,084.00 1.87
Dr Reddys Labs 2,554.60 1.81
Company Price Change %Gain
Maruti Suzuki 6,198.75 3.75
Tata Motors 123.80 2.53
Infosys 792.90 1.94
HCL Tech 1,083.85 1.87
M&M 527.90 1.44
Top Losers
Company Price Change %Gain
Yes Bank 71.20 -7.11
Britannia 2,393.50 -3.43
UltraTechCement 4,033.05 -3.01
Indiabulls Hsg 521.40 -2.88
Eicher Motors 15,895.75 -2.71
Company Price Change %Gain
Yes Bank 71.25 -7.11
IndusInd Bank 1,404.75 -2.36
ITC 246.55 -2.01
Coal India 195.25 -1.91
Axis Bank 672.20 -1.87

Live TV

Loading...
Countdown To Elections Results
To Assembly Elections 2018 Results