India's Punjab National Bank is conducting a probe into a 2.81-billion-rupees suspected fraud in one of its branches in the country.
The bank said Feb. 5 that it has reported the matter to the relevant regulatory and investigating authorities. The bank noted that it came across the suspected fraud after observing certain irregularities at the branch on account of people risk.
Meanwhile, India's Central Bureau of Investigation charged businessman Nirav Modi, his wife and brother and a partner for conspiring with Punjab National Bank's officials to embezzle the money, Press Trust of India reported the same day, citing officials. Modi, his brother Nishal, wife Ami and Mehul Chinubhai Choksi are all partners of Diamon R US, Solar Exports and Stellar Diamonds.
In its complaint, Punjab National Bank has alleged that its officials did not follow proper procedures in issuing eight letters of undertakings worth 2.81 billion rupees for and on behalf of the accused firms, the publication reported. The firms presented a set of import documents to the branch and requested to allow buyers credit for making payment to overseas suppliers.
The news came after the CBI in January filed 22 cases against Punjab National Bank's officials in connection with an alleged 800 million rupees fraud case.
As of Feb. 5, US$1 was equivalent to 64.06 Indian rupees.
