It has been a month and 5 days since the Rs 13,000 crore fraud allegedly by Nirav Modi in collusion with a former bank employee at the Punjab National Bank (PNB) came to light. As the PNB case led to the sharp criticism of the government, the Reserve Bank of India, Indian banking system and the auditors, the investigation into such cases is understood to have gained momentum.
According to government data, in 3 years until 2017, 12,000 cases of bank frauds were detected at public sector banks and private banks. And in the last 33 days, at least five fraud cases have been uncovered at different banks.
Here are five latest cases of bank fraud under probe:
Canara Bank Fraud: Last week, the CBI arrested two directors of a computer maker RP Infosystem for defrauding 27 banks including Canara Bank. Canara Bank filed a complaint on behalf of other lenders on February 27. The CBI has registered the case under the charges of cheating, criminal conspiracy, and forgery.
Axis Bank Fraud: A bank fraud has come to light in which Axis Bank has been duped. According to a report by The Times of India, three directors of a private company have been arrested by Mumbai police for a bank fraud of Rs 4,000 crore. Of the total amount, Axis Bank has been cheated for Rs 250 crore.
Nirav Modi case: A multi-agency probe was launched as soon as the fraud carried out allegedly by Nirav Modi in collusion with former PNB DGM Gokulnath Shetty through the fake Letters of Understanding (LoUs) was detected. While Nirav Modi and his close aid Mehul Choksi have fled the country, the investigative agencies have seized properties of businessmen and arrested some bank employees and related persons.
Another PNB Fraud: Just last week another fraud at PNB using the same system of fake LoUs by same former PNB DGM Gokulnath Shetty was detected. According to the police complaint, the fraud involving Rs 9.9 crore was detected at the Mumbai branch of the bank and Gokulnath Shetty along with promoters of Chandri Papers have been booked.
Oriental Bank of Commerce Fraud: This was similar to the Nirav Modi case. Here also Delhi-based jeweller Dwarka Das Seth was accused of defrauding Oriental Bank of Commerce in a similar fashion, however, by obtaining fake Letters of Credit (LCs) instead of LoUs. A case was registered by the CBI and probe is currently underway.
(The story inadvertently mentioned that ‘three directors of a private bank have been arrested’ while three directors of a private company have been arrested. The story has been updated after making the correction.)