Amount involved in Rs 127-bn PNB scam unlikely to go up, says DEA Secy

We have not seen any more evidence: Subhash Chandra Garg

The quantum of fraud at Punjab National Bank, allegedly carried out by diamantaire Nirav Modi, is not likely to increase from Rs 127 billion, economic affairs secretary Subhash Chandra Garg said here on Thursday.

Modi and his uncle Mehul Choksi have been accused of defrauding PNB through the use of fraudulent Letters of Undertaking (LoUs) to get credit from overseas branches of Indian banks.

"We have not seen any more evidence," Garg said when asked if the funds involved in the fraud could go up further.

PNB had initially reported that the amount involved in the fraud was about $1.77 billion, but later revised it upwards by another $204.25 million.

While talking to reporters on the sidelines of an IVCA event here, Garg further said the Department of Financial Services in the finance ministry has asked banks to screen all NPA or bad loan accounts.

"...those are being screened by the respective banks. If something emerges we will know but at this stage we don't see anything coming up or anything having come up," he said.

The finance ministry has instructed public sector banks to scan all Non Performing Asset (NPA) accounts of more than Rs 50 crore for possible fraud. Banks have been asked to report all cases of fraud to the Central Bureau of Investigation.