Accused won't be spared: PNB on Nirav Modi fraud case

Managing Director of Punjab National Bank (PNB) Sunil Mehta on Thursday said the bank will not hold any leniency against any accused employees in connection with jewellery designer Nirav Modi fraud case, irrespective of their post.

While addressing a press conference here, Mehta said, "Mainly foreign branches of the Indian banks are involved in it barring one case. We have already initiated the legal process in the matter and have conducted a consortium meeting because both the companies are dealing with a large number of banks. Information to SEBI was given on time. We will not spare anybody, be it senior or junior."

Earlier on Wednesday, the bank had confirmed fraudulent activities at its branches in Mumbai, worth transactions USD 1771.69 million for the benefit of some account holders.

He added that rest of the details will be given after the investigation is completed.

"We have already informed the lenders during the consortium meetings and we are working on the modalities. If any unethical thing or any fraudulent activity made by your staff or customer comes to notice we will book them for pursuing this incident. We are examining the system as well to see what loopholes it had and in case there are system related issues we will correct it," Mehta asserted.

PNB has also suspended 10 of its officials in connection with the case.

Modi had allegedly cheated the bank to the tune of Rs. 280.7 crore.

The Central Bureau of Investigation (CBI) had on Monday booked Nirav Modi, his brother Nishal Modi and the officials of PNB in this regard.

It has emerged that the fraudulently issued Letters of Undertaking (LoUs) from the Mumbai branch of PNB were in favour of Hong Kong branches of Allahabad Bank and Axis Bank, that helped facilitate Rs 280.7 crore fraud by Modi among others.

According to the official sources, Nirav Modi left the country on January 1.

CBI had received the complaint form PNB on January 28 and a case was registered in the case on January 31st.