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9:54 pm - Saturday March 17, 2018

PNB Fraud: AIBEA demands CBI inquiry to book culprits


All India Bank Employees’ Association (AIBEA) on Monday demanded a CBI inquiry into the Punjab National Bank (PNB) Fraud to book the culprits.

In a statement, AIBEA General Secretary Ch Venkatachalam also demanded a probe to get Banks rid of ‘NIMO’nia ailments in future. The government should keep off PNB Top management from the Bank until fraud probe is completed, he said.

“We demand extradition of Billionaire Jewellery designer Nirav Modi and his associates and to be brought to India to face the trial,” Mr Venkatachalam said.

He said, at a time when Banks are facing the problem of huge irrecoverable bad loans and getting into losses due to provisions to be made from the profits earned, the PNB – NIMO fraud has a huge shock exposing the increasing trend of corporate loot of banks and thus, the people’s money.

He said attempts are being made to dilute the magnitude of the fraud as ‘one bank one branch two employees fraud’. Such huge frauds cannot be committed in a simple way that a branch official would give LoU for Rs 11,400 crore in a period of 6 or 7 years without no one knowing about it. No doubt there has been serious complicity of the branch official. But it is naive to believe that no one else is involved in this racket.

Atleast it cannot happened without the knowledge of Nirav modi in whose favour these LoUs have been given. The fraud has raised number of questions on technology issues, supervision, monitoring, audit, internal control, etc. besides role of RBI in the whole episode.

The Top Union leader said how is it that the RBI which carries out a regular audit of the banks, not even smell the fraud, despite the number of years and the volume of money involved? Was the software SWIFT that was used for the fraud approved by the RBI or not for the banking sector? If not, why did the RBI not examine this thoroughly and evaluate the risk? The famous Harshad Mehta scam was because of the so called “innovative” measure of banking receipts that landed the banking sector in deep crisis.

The Nirav Modi fraud has exploited the new instrument Letters of Undertaking. Is the RBI going to do something about this?, the AIBEA General Secretary questioned.

Posted in: Business, Featured

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