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Report: Grant Thornton hired to investigate Indian co-op bank over alleged fraud

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Report: Grant Thornton hired to investigate Indian co-op bank over alleged fraud

The Indian government appointed auditor Grant Thornton to investigate Punjab & Maharashtra Co-operative Bank Ltd. over an alleged fraud of 4.36 billion rupees, The Economic Times reported, citing four people with direct knowledge of the matter.

The Economic Offences Wing of the Mumbai police recently registered a first information report on the alleged fund diversion at the bank, one of the sources told the newspaper. The initial investigations show that the bank did not report its exposure to Housing Development and Infrastructure Limited for six to seven years, the Oct. 4 report added.

The bank's former managing director, Joy Thomas, earlier claimed that the bank violated Reserve Bank of India's rules. The central bank had barred Punjab & Maharashtra Co-operative Bank from granting or renewing any loans, making investments and borrowing funds, among others, for a six-month period starting from Sept. 23.

As of Oct. 3, US$1 was equivalent to 71.06 Indian rupees.