Just over a month after nearly Rs 13,000 crore was detected at the Brady House branch of Punjab National Bank (PNB), Economic Offences Wing (EOW) of Delhi Police has uncovered alleged loan fraud to the tune of Rs 3.5 crore in the national capital. Seven cases of alleged fraud were detected by the Delhi Police, The Indian Express reported. While seven FIRs have been registered, one complaint is pending, The Indian Express reported citing Delhi Police. The complaints were received by the cops from Gopal D Devnami, a senior branch manager at PNB, the report said. EOW is also probing roles of various other senior officials at the Jangpura branch of PNB have also come under EOW scanner.
The loans were allegedly issued to the customers between 2013 and 2015, the report said. It was in 2016 that complaint was first filed at Hazrat Nizamuddin police station when the fraud was detected by the bank during the yearly audit. The case was recently transferred to the EOW and probe is ongoing, the report added.
Rs 13,000 crore fraud at PNB Mumbai branch
On 14 February this year, PNB first informed the stock exchanges that fake Letters of Undertaking (LoUs) have been generated at its Brady House branch. The bank said that the letters were issued by a few of its former employees who colluded with the firms owned by billionaire diamond merchant Nirav Modi. The LoUs were informed to be issued to the tune of Rs 11,700 crore. However, the fraud amount inflated as the probe took on and now stands at Rs 13,000 crore. It is said to be the largest fraud reported in the history of public sector banks. Now both Enforcement Directorate (ED) and Central Bureau of Investigation (CBI) are investigating the entire fraud. So far both have raided various places and companies associated with both Nirav Modi and his uncle Mehul Choksi, the other prime accused in the case. So far 11 accused have been sent to judicial custody.