Punjab National Bank (PNB) has reportedly detected another small fraud at a Mumbai's Brady branch. According to reports, the new alleged fraud of around Rs 9 crore involves officials of a little-known company called Chandri Paper and Allied Products Pvt Ltd.
The new complaint has been posted on the website of Central Bureau of Investigation (CBI), Reuters said. The news agency could not reach a PNB spokesman and Chandri Paper for comment.
CBI has booked ex PNB DGM Gokulnath Shetty and Manoj Hanumat Kharawat, promoters of Chandri Papers in the matter, ANI reported. Shetty who is accused in over Rs 13, 580 crore scam is now blamed for issuing two LoU using same modus operandi to Chandri Papers. LoUs were issued to SBI branch Antwerp on 25 April 2017
The Brady branch of PNB is at the centre of India's biggest banking fraud, wherein two diamantaires Mehul Choksi and his nephew Nirav Modi allegedly borrowed the fraud amount from a consortium of international banks on the basis of fake Letters of Undertaking, issued in the name of the bank.
CBI, Enforcement Directorate and Income Tax Department have registered complaints and are conducting investigations into the matter. Choksi, Nirav Modi and his family fled to abroad in January around a month before the PNB filed the first complaint against them about the fraud and they are still at large.