PNB suspends 10 in a fraud involving top Mumbai jewellery designer

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New Delhi: The Punjab National Bank (PNB) on Wednesday suspended its ten officials, including a branch Deputy Manager, in a fraudulent transaction case that also involved noted jewellery designer Nirav Modi.

The suspension comes following the bank uncovering fraudulent and unauthorised transactions worth USD 1771.69 million from its branch in Mumbai.

Earlier in the day, the state-owned lender said that they had cracked a case of swindling, which was contingent in nature.

"The bank has detected some fraudulent and unauthorised transactions in one of its branches in Mumbai for the benefit for a few select account holders with their apparent connivance. Based on these transactions, other banks appear to have advanced money to these customers abroad," an official statement read.

Few days ago, the Central Bureau of Investigation (CBI) had booked the noted jewellery designer Nirav Modi, his brother Nishal Modi and some PNB officials for allegedly cheating the bank to the tune of more than Rs. 280 crore.

Meanwhile, Secretary of the Department of Financial Services (DFS), Rajiv Kumar, assured that all necessary action would be taken in the case.

"This is part of NPA resolution reforms agenda. Cleaning of banks is the top priority of the government, and it directed all the banks on NPA clean up to help honest borrowers avail loans. After having recapitalised, we will ensure all banks are cleaned up. This is a one-time cleaning exercise. Whatever it takes, we will do it," he told ANI.

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