The country's second biggest commercial bank the Punjab National Bank has also incurred biggest ever corporate fraud involving the massive sum of Rs.11,500 crores.Uptill now 9000 crores of rupees of bank fraud has been on the name of Mr.Vijay Mallya of United Breweries and King Fisher Airlines. He is absconding and at London.
The India has moved extradition proceeding against him there. In India many banks advanced him loans and at that time he had credit and reputation on wide scale in the corporate world here.
His reputation was very high and none of the banks had any iota of doubt in his capacities to repay the loans well in time. But somehow he sustained huge losses in King Fisher Airlines venture. In big and massive enterprises losses are also of that magnitude.
Likewise Mr.Subrato Roy of "Sahara" is also deep neck in financial trouble in not being able to repay to shareholders. The Supreme Court also sent to him to jail till he finds ways and means of make repayments. Most of his properties and assets are seized.
Now surpassing these two great financial scandals another much bigger bank fraud was committed in the Punjab National Bank that jolted the banking sector. The Central Government has asked all the banks to look into its affairs to detect such fraud and bad loans and report to the Government.
The one thing that in the credit of PNB that the Bank itself detected the massive fraud and filed cases against the Diamond King Nirav Modi who committed the fraud in collaboration with Bank officials and his wife, brother and maternal uncle Mr.Mehul Choksi. Ten bank officials are placed under suspension. It is said that this bank fraud started in 2011 in the Beach Candy Branch of the PNB in Mumbai.
The bank issued 8 LOU on other banks i.e. Allahabad Bank, the Union Bank of India and Axis Bank. It is suspected in taking into account the financial transactions in these and other banks, the total fraud may mount utpo Rs.30,000 crores of rupees.
In a bombshell the Congress President Rahul Gandhi has said on Twitter that the Kingpin Nirav Modi accompanies the Prime Minister Mr.Narendra Modi on his state visit to Dhabhol in Switzerland recently and they were seen hugging each other there.
The Union Joint Financial Secretary Mr.Lok Ranjan has said that the situation was not out of control and actions were being taken. Many residential and business installations of Nirav Modi at Delhi, Surat, Mumbai and raided and documents seized.It is reported that Nirav Modi left India and hiding somewhere else in Europe or Hong Kong.
The Managing Director of the PNB Mr.Sunil Mehta is a hurriedly called press conference said that the Bank has capability and responsibility to overcome this crisis successfully. The interest of the Bank and its business and customers were totally safe and secure.
In such cases the businessman are always villian and entire amount in default are mentioned against him. The vital question is that such money are given to them by the high bank officials and quite obviously they must had huge "cut and commission" on it and this amount are not mentioned on them.
The entire money is shared between the clients and bank officials. Both are equally involved in swindling and sharing the money. Such things cannot be one-sided fraud.