Monday, 19 February 2018

Indian bank branch at centre of $1.8bn fraud is closed by Indian federal police

Indian federal police have sealed off the south Mumbai branch of a bank at the centre of the biggest loan fraud in the country's history.

A billionaire jeweller, Nirav Modi, and others are accused of colluding with employees at Punjab National Bank.

It is alleged they obtained fraudulent advances for payments to overseas suppliers worth about $1.8bn (£1.3bn) from the Indian government-run lender.

Mr Modi has not commented on the case and no charges have been filed.

Three people have been arrested on suspicion of helping Mr Modi, who is understood to have left India last month. His whereabouts are unclear and the government has suspended his passport.
Reuters reported that a lone Punjab National Bank manager, later aided by a younger subordinate, engineered fraudulent transactions totalling about $1.8 billion between 2011 to 2017.

The bank said it was still investigating how they were able to do so for so long.

Shares in the bank fell more than 10% in Mumbai on Monday.

BBC        News.

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