Last month, the Punjab National Bank (PNB) detected a massive fraud by a celebrity diamantaire, who allegedly colluded with a former bank employee to obtain fake LoUs. And amid the banking crisis, the Rs 13,000 crore fraud went undetected for seven years. If this was not enough, the news of Nirav Modi and his close aide Mehul Choksi having left India fuelled the fire even as their assets were seized and passports were revoked. The scale of Nirav Modi-PNB scam is understood to have shifted the focus of banks and investigating agencies towards bank frauds and scrutinise the patterns that emerged from what is being called as biggest banking fraud in the history of India. And, voila! more skeletons starting tumbling out of the closet.
Here’s a list of bank frauds detected in last 37 days:
Another Nirav Modi?
Another jeweller has been accused of defrauding a consortium of banks and may have fled the country with his wife. The only difference is that unlike Nirav Modi, he did not use LoUs to loot the bank; instead, he resorted to false records and financial statements to get loans from banks. Chennai-based jeweller Kanishk Gold Pvt Ltd (KGPL) Bhoopesh Kumar Jain has been accused of defrauding a consortium of 14 banks to the tune of Rs 824 crore. His loans have now been declared as NPA.
Totem Infrastructure Ltd
This Hyderabad-based Infrastructure company has been booked by the Central Bureau of Investigation (CBI) for defrauding a consortium of eight banks led by Union Bank of India (UBI) to the tune of Rs 1,394 crore. The loans were declared as NPA way back in 2012. The company has been alleged of diverting funds and inflating expenditure.
Another PNB fraud
A fraud similar to that of Nirav Modi was unearthed last week in which fake LoUs were issued by the same bank employee. According to the FIR filed with police, fraud involving Rs 9.9 crore was detected at the Mumbai branch of the bank and PNB DGM Gokulnath Shetty along with promoters of Chandri Papers have been booked.
Recently, the CBI arrested two directors of RP Infosystem on compliant of Canara Bank, which alleged that the company defrauded 27 banks. A charge of charges of cheating, criminal conspiracy, and forgery have been registered against the accused.
Rs 4,000 crore fraud
A fraud of Rs 4,000 crore has been detected, in which Axis Bank has been duped Rs 250 crore. After a complaint was filed by Axis Bank, Mumbai police arrested three directors of a private company for defrauding a consortium of banks for Rs 4,000.