The government has removed two executives of the Punjab National Bank (PNB) for allegedly failing to prevent a $2 billion fraud, two sources said on Sunday, nearly a year after the country’s biggest bank scam came to light and also dragged the government into the controversy.
In a stock exchange filing late on Friday, the country’s second-biggest state bank said the government had removed K. Veera Brahmaji Rao and Sanjiv Sharan “from the office of executive director” with immediate effect. The filing did not give a reason.
The government then fired them because “they failed to use global payments network SWIFT to detect the fraud”, a bank source said. The sources who had direct knowledge of the matter and declined to be identified because the reasons for the sacking have not been made public.
About the Original PNB case:
The Punjab National Bank Fraud Case relates to fraudulent letter of undertaking worth ₹14,356.84 crore (US$ 2.1 billion) issued by the Punjab National Bank at its Brady House branch in Fort, Mumbai; making Punjab National Bank liable for the amount. The fraud was allegedly organized by jeweller and designer Nirav Modi. Nirav, his wife Ami Modi, brother Nishal Modi and uncle Mehul Choksi
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