Rs 114-bn fraud: Other lenders flouted RBI rules, PNB tells 30 bank heads

'There is a clear criminal connivance of group companies of Nirav Modi and Gitanjali Gems,' said PNB

In a letter to chiefs of 30 banks, Punjab National Bank (PNB) has alleged that other banks did not follow due diligence and that there could be involvement of employees of these banks as well in the scam. The letter, which said the modus operandi was being shared “strictly for exercising necessary caution in the matter”, was also deeply critical of other banks.

It said a junior level branch official unauthorisedly and fraudulently issued letters of undertakings (LoUs) on behalf of some firms belonging to the Nirav Modi group viz., Solar Exports, Stellar Diamonds, and Diamonds R Us for availing