Govt asks fraud-hit Punjab National Bank to conduct forensic audits

Financial Services Secretary Rajiv Kumar told media persons PNB had 'sufficient funds' to provision for the losses arising out of the fraud

The government has asked fraud-hit Punjab National Bank (PNB) to conduct a forensic audit and give a detailed report on why the loans given to jeweller Nirav Modi and his associates, based on fraudulent letters of undertaking (LoUs), were not unearthed from 2011 till now.

This comes after PNB Chief Executive Officer Sunil Mehta said in a press conference on Thursday the Rs 114 billion ($1.8 billion) fraud started in 2011. 

Those implicated are Modi, his brother Nishal Modi, wife Ami, and partner Mehul Choksi. 

Senior government sources told Business Standard the RBI would independently do its enquiry to ascertain