Lender Banks Required To Provide Audit Reports To Borrowers & Allow Representation Before Classifying Accounts As Fraud: Gujarat High Court
1 year ago

Lender Banks Required To Provide Audit Reports To Borrowers & Allow Representation Before Classifying Accounts As Fraud: Gujarat High Court

Live Law  

The Gujarat High Court while partly allowing a special civil application has emphasized the importance of lender banks affording borrowers the opportunity to review audit reports and present their case before categorizing an account as fraudulent. During meetings held on 18.08.2020 and 29.09.2020, discussions were held regarding forensic audit reports dated 11.08.2020 and 18.09.2020, along with various related issues, including the South Indian Bank's declaration of fraud concerning the company's account. It was also held and observed that therefore, principles of natural justice demand that the borrowers must be served a notice, given an opportunity to explain the findings in the forensic audit report, and to represent before the account is classified as fraud under the Master Directions on Frauds. The Apex Court has also directed that consistent with the principles of natural justice, the lender banks should provide an opportunity to a borrower by furnishing a copy of the audit reports and allow the borrower a reasonable opportunity to submit a representation before classifying the account as fraud coupled with passing of a reasoned order on the objections addressed by the borrower.” “Undisputedly, in the present case, no such steps have been taken by the respondent lender banks and therefore, on this limited ground of violation of principles of natural justice, the decision of the respondent banks declaring the account of the company as fraud is hereby quashed and set aside,” the Court further observed.

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History of this topic

Bombay High Court slams banks casual take on declaring accounts fraud, asks Anil Ambani to approach RBI
1 month ago

Bombay High Court slams banks casual take on declaring accounts fraud, asks Anil Ambani to approach RBI

The Hindu  

Raising concerns over banks casual take in declaring bank accounts as defaulter or fraud, the Bombay High Court on Friday, issued notice to Union Bank of India and the Reserve Bank of India in response to a petition filed by industrialist Anil Ambani. The petition challenges the October 10, 2024, order passed by the UBI by which it classified Mr. …

Bombay HC Directs Anil Ambani to Approach RBI in Loan Fraud Classification Case
Trending News
1 month ago

Bombay HC Directs Anil Ambani to Approach RBI in Loan Fraud Classification Case

Deccan Chronicle  

Mumbai: The Bombay High Court on Friday issued a notice to the Union Bank of India and the Reserve Bank of India in response to a petition filed by industrialist Anil Ambani challenging the classification of his loan account as fraud. The Court expressed concerns over the "cut, copy, paste manner" in which banks pass orders declaring accounts as `defaulter' …

Bombay High Court Flags 'Cut Copy Paste' Orders Being Passed By Banks To Declare Fraud Accounts; Asks Anil Ambani To Approach RBI
1 month ago

Bombay High Court Flags 'Cut Copy Paste' Orders Being Passed By Banks To Declare Fraud Accounts; Asks Anil Ambani To Approach RBI

Live Law  

The Bombay High Court on Friday asked industrialist Anil Ambani to approach the Reserve Bank of India to challenge the October 10, 2024 order passed by the Union Bank of India by which it classified his loan account, related to Reliance Communications, as "fraudulent account." A division bench of Justices Revati Mohite-Dere and Dr Neela Gokhale noted that the banks …

Relief to Anil Ambani in Canara Bank account case; High Court issues notice to RBI
1 month, 2 weeks ago

Relief to Anil Ambani in Canara Bank account case; High Court issues notice to RBI

India Today  

The Bombay High Court last Friday directed the Reserve Bank of India to state whether it proposes to take any action against banks that repeatedly declare a person’s account as fraudulent without giving the account holder a hearing. The bench of Justices Revati Mohite-Dere and Neela Gokhale issued this direction while hearing a petition filed by industrialist Anil Ambani, whose …

Relief For Anil Ambani As Bombay High Court Stays Canara Bank's Order Classifying Reliance Comm Loan Account As 'Fraud'
1 month, 3 weeks ago

Relief For Anil Ambani As Bombay High Court Stays Canara Bank's Order Classifying Reliance Comm Loan Account As 'Fraud'

Live Law  

In a relief to industrialist Anil Ambani, the Bombay High Court on Friday stayed an order passed by the Canara Bank by which it classified his loan account, related to Reliance Communications, as "fraudulent account. In a relief to industrialist Anil Ambani, the Bombay High Court on Friday stayed an order passed by the Canara Bank by which it classified …

FIR Not Invalidated By Quashing Fraud Classification Of Bank Account If It Prima Facie Discloses Cognizable Offences: Delhi HC
2 months ago

FIR Not Invalidated By Quashing Fraud Classification Of Bank Account If It Prima Facie Discloses Cognizable Offences: Delhi HC

Live Law  

In a plea for quashing an FIR against a company accused of allegedly committing fraudulent transactions, the Delhi High Court observed that quashing of a fraud classification of a bank account does not in itself vitiate the First Information Report lodged on the basis of such classification if the FIR prima facie discloses the commission of cognizable offence. Justice Sanjeev …

Legal audits hold the key to address loan write-offs by Indian banks
2 months, 2 weeks ago

Legal audits hold the key to address loan write-offs by Indian banks

Live Mint  

Banks have written off loans worth ₹9.90 trillion in the last five financial years, with ₹1.70 trillion written off in 2023-24 alone. Legal audits act as a comprehensive check on the assets backing loans, ensuring they are genuinely owned by the borrower, free from competing claims, and aligned with the loan terms. The increasing levels of fraud and loan irregularities …

Bank fraud allegations must never be levelled lightly
8 months, 2 weeks ago

Bank fraud allegations must never be levelled lightly

Live Mint  

The Reserve Bank of India’s latest revision of its Master Circular on Fraud Risk Management in banks and other regulated entities has not come a day too soon. This revision of instructions follows a recent Supreme Court ruling which said the principles of natural justice demand that the borrower be given a chance and time to respond to a charge …

RBI asks lenders to hear out loan defaulters before tagging accounts as ‘fraud’; check revised norms
8 months, 2 weeks ago

RBI asks lenders to hear out loan defaulters before tagging accounts as ‘fraud’; check revised norms

Live Mint  

The Reserve Bank of India on Monday, July 15, asked banks and other financial institutions to give defaulting borrowers adequate time before they are classified as “fraud accounts". The banks now have to issue show-cause notices to fraudulent account holders which will have the full details of the fraud, said the RBI in a release. The change in the current …

Banks must hear out loan defaulters before declaring accounts 'fraud': RBI
8 months, 2 weeks ago

Banks must hear out loan defaulters before declaring accounts 'fraud': RBI

Hindustan Times  

India's central bank on Monday asked lenders to give defaulting borrowers enough time to respond before they are classified as "fraud accounts," following a judgment by the country's top court. Banks will now have to issue a show-cause notice to fraudulent entities with complete details of the fraud, the Reserve Bank of India said. Banks will now have to issue …

RBI alarmed at lakhs of bank accounts being used for fraud: Report
8 months, 3 weeks ago

RBI alarmed at lakhs of bank accounts being used for fraud: Report

Live Mint  

The Reserve Bank of India expressed its surprise at some banks having lakhs of accounts that are used for fraudulent transactions and evergreening loans, reported Business Standard. We found certain banks having lakhs of such accounts with apparently no valid reason,” RBI Deputy Governor Swaminathan J said on Tuesday in his address to banks, with chief financial officers and auditors …

[IBC] Party Must Be Provided With All Requisite Documents That Form Basis Of Show Cause Notice: Delhi High Court
10 months ago

[IBC] Party Must Be Provided With All Requisite Documents That Form Basis Of Show Cause Notice: Delhi High Court

Live Law  

The Delhi High Court bench of Justice Mini Pushkarna held that the concerned party must be provided with all requisite documents that form the basis of Show Cause Notices by the banks. The Petitioner approached the Delhi High Court seeking the quashing and setting aside of Show Cause Notices issued by several respondent banks, which declared the account of M/s …

Two private firms, its directors booked for duping bank of ₹16.85 crore
1 year, 8 months ago

Two private firms, its directors booked for duping bank of ₹16.85 crore

Hindustan Times  

Mumbai: Two private firms, along with four other persons, have been booked recently for allegedly cheating Union Bank of India of ₹16.85 crore after diverting the sanctioned credit facilities to the borrower. HT Image According to the Central Bureau of Investigation, the loan account of the private venture – a Nagpur-based poultry firm – was classified as a Non-Performing Asset …

Bombay HC stays RBI circular allowing banks to declare fraud accounts without hearing
1 year, 9 months ago

Bombay HC stays RBI circular allowing banks to declare fraud accounts without hearing

India Today  

The Bombay High Court, on Monday, put an interim stay on the effect of the master circular issued by the Reserve Bank of India in 2016 that allows public sector and commercial banks to declare any account as a fraudulent account without a hearing. During the hearing, the bench stayed the effect of the 2016 RBI master directions on the …

Never Said Borrowers Should Be Personally Heard Before Their Accounts Are Classified As Fraud : Supreme Court
1 year, 10 months ago

Never Said Borrowers Should Be Personally Heard Before Their Accounts Are Classified As Fraud : Supreme Court

Live Law  

The Supreme Court on Friday clarified that its judgment, which mandated that borrowers should be heard by banks before their accounts are classified as fraudulent in terms of the RBI master circulars, did not mean that they should be personally heard.Opportunity of hearing does not mean personal hearing, said the bench comprising Chief Justice of India DY Chandrachud and Justice …

Banks Must Give Opportunity Of Hearing To Borrowers Before Classifying Their Accounts As Fraud : Supreme Court
2 years ago

Banks Must Give Opportunity Of Hearing To Borrowers Before Classifying Their Accounts As Fraud : Supreme Court

Live Law  

In a significant verdict, the Supreme Court on Monday held that borrowers must be heard before their accounts are classified as fraud. The Court held that the principles of "audi alteram partem" must be read into the Circular issued by the Reserve Bank of India on the classification of bank accounts as fraud accounts.The bench noted that classification of accounts …

CBI searches five locations in bank fraud case against Delhi company
2 years, 9 months ago

CBI searches five locations in bank fraud case against Delhi company

India TV News  

CBI searches five locations in bank fraud case against Delhi company The CBI acted on a complaint from Indian Overseas Bank alleging serious manipulation in the finances of the company. Highlights CBI had registered FIR against Delhi-based packaging company Rave Scans Pvt Ltd allegedly defrauded consortium of banks to the tune of Rs 69.33 crore CBI has booked the accused …

Auditors must report to RBI on deviations in regulated entities: Shaktikanta Das
3 years, 5 months ago

Auditors must report to RBI on deviations in regulated entities: Shaktikanta Das

The Hindu  

Auditors have a duty to report directly to the Reserve Bank of India on matters of material significance arising from the audit of banks and other regulated entities, central bank governor Shaktikanta Das said. Mr. Das also flagged the key role auditors must play in checking “smart accounting” practices of some company managements and the need for technology expertise to …

After Union Bank, IOB, Delhi HC Directs SBI, RBI To Maintain Status Quo On Classification Of Anil Ambani's RComm, Reliance Telecom Accounts
4 years, 2 months ago

After Union Bank, IOB, Delhi HC Directs SBI, RBI To Maintain Status Quo On Classification Of Anil Ambani's RComm, Reliance Telecom Accounts

Live Law  

About a week after Union Bank of India and Indian Overseas Bank, State Bank of India and the Reserve Bank of India have been directed by the Delhi High Court to maintain status quo on the classification of Anil Ambani's Reliance Communication Ltd's and Reliance Telecom Ltd's accounts as 'fraudulent' until Jan 13, 2021. Issuing notice on a plea towards …

Half-Hearted Approach By CBI Towards Investigating Bank Officials: Special CBI Court Ghaziabad Orders Further Investigation
4 years, 4 months ago

Half-Hearted Approach By CBI Towards Investigating Bank Officials: Special CBI Court Ghaziabad Orders Further Investigation

Live Law  

A Delhi Court on Monday pulled up the Central Bureau of Investigation for conducting a 'half-hearted' investigation against the officers of the Punjab National Bank, Ghaziabad, allegedly involved in cheating the Bank by sanctioning housing loans without proper verification of the allottees. It is difficult to believe that the accused would have been able to commit the alleged fraud without …

ED attaches assets of frauds accused in Rs 2,066 crore money laundering scam
4 years, 6 months ago

ED attaches assets of frauds accused in Rs 2,066 crore money laundering scam

India Today  

The Enforcement Directorate has provisionally attached proceeds of crime worth Rs. 11.85 crores in the form of movable properties belonging to main promoters in the case of Surya Vinayak Industries Ltd. and its group companies under the Prevention of Money Laundering Act, 2002 in a bank fraud case. The case has been filed against Surya Vinayak Industries Ltd., Sanjay Jain, …

PNB classifies its loan exposure to Reliance Home Finance as fraud
4 years, 7 months ago

PNB classifies its loan exposure to Reliance Home Finance as fraud

Live Mint  

Punjab National Bank has classified its exposure to Reliance Home Finance Ltd as a fraud account and communicated it to the Reserve Bank of India, three bankers aware of the development said. PNB made the decision following a forensic audit report that highlighted some Reliance Home Finance transactions with other companies in the same group, the bankers cited above said …

RBI affidavit details how it was ’cheated’ by scam-hit PMC Bank
5 years, 4 months ago

RBI affidavit details how it was ’cheated’ by scam-hit PMC Bank

Live Mint  

In a detailed affidavit filed before the Bombay High Court on Tuesday, the Reserve Bank of India has virtually admitted that it was 'cheated' by the management of the scam-hit Punjab & Maharashtra Cooperative Bank. The affidavit, filed by Rajlaxmi Sethi, Assistant General Manager, Department of Co-operative Bank Supervision, RBI, states that PMC Bank had submitted fraudulently manipulated data to …

Delhi court summons 11 top PNB officials for violation of banking regulations, criminal conspiracy
6 years ago

Delhi court summons 11 top PNB officials for violation of banking regulations, criminal conspiracy

India TV News  

A Delhi court has summoned as accused 11 top officials of the Punjab National Bank, including former and current executive officials and the current managing director, for alleged violation of banking regulations and criminal conspiracy. In its complaint, the RBI has alleged non-compliance of its 2016 order directing commercial banks, including the PNB, to integrate their core banking system with …

ICICI Bank to hire forensic auditor to probe allegations of irregularities into 31 loan accounts
6 years, 3 months ago

ICICI Bank to hire forensic auditor to probe allegations of irregularities into 31 loan accounts

Firstpost  

ICICI Bank has approached firms including BDO India, FTI India and Grant Thornton for conducting forensic investigations into the allegations ICICI Bank will reportedly be hiring a forensic auditor to probe allegations of irregularities in 31 loan accounts, flagged by a whistleblower, a media report said. According to The Economic Times, the bank has approached firms including BDO India, FTI …

How do bank frauds happen? Central Vigilance Commission has the answers
6 years, 5 months ago

How do bank frauds happen? Central Vigilance Commission has the answers

Live Mint  

Mumbai: From creating fictional debtors and inflating invoices to hiring chartered accountants to access the core banking systems during audits, delinquent borrowers have deployed a slew of tactics to commit bank frauds. The Central Vigilance Commission analysed top 100 bank frauds as on 31 March 2017. “However, if banks implement a system that can check the money trail, as and …

Opinion | The anatomy of banking frauds
6 years, 5 months ago

Opinion | The anatomy of banking frauds

Live Mint  

Fraud is a real operational risk for banks. As the latest Financial Stability Report of the Reserve Bank of India shows, the Indian banking system reported about 6,500 instances of fraud involving over ₹ 30,000 crore in the last fiscal. Banking frauds attracted national attention when the Punjab National Bank reported earlier this year that it had been defrauded by …

Central Vigilance Commission reviews top 100 bank frauds till 2017; Check details
6 years, 5 months ago

Central Vigilance Commission reviews top 100 bank frauds till 2017; Check details

ABP News  

New Delhi: The Central Vigilance Commission has reviewed "100 top bank frauds" committed till 2017 and has submitted a report to the Reserve Bank of India, complete with information on how the frauds were executed and counter-measures the banks can employ to avoid them. In a statement issued by government on Tuesday, the CVC Vigilance Commissioner TM Bhasin was quoted …

PNB fraud: Hong Kong banking regulator cracks down on Indian lenders operating in the SAR over suspected irregularities
6 years, 9 months ago

PNB fraud: Hong Kong banking regulator cracks down on Indian lenders operating in the SAR over suspected irregularities

Firstpost  

Barring the SBI and a private bank, almost all Indian banks in Hong Kong have been subjected to a review and supervisory measures by the Hong Kong Monetary Authority New Delhi: After Firstpost exposed irregularities in the operations of Indian public sector banks in Hong Kong, the banking regulator in the Special Administrative Region of China has initiated a clean-up …

Bank frauds and wilful default: Gunning for ‘innocent’ managers is inevitable, but witch-hunting must be avoided
6 years, 10 months ago

Bank frauds and wilful default: Gunning for ‘innocent’ managers is inevitable, but witch-hunting must be avoided

Firstpost  

It is the constant refrain among the commentariat that if the Central Bureau of Investigation constantly breathes down the neck of bank managers who grant loans, the result would be a slowing down of the economy as the latter would play it safe and not lend even if there is a slight element of risk. They also aver that banks …

Fraud-hit Punjab National Bank to hire detectives to hunt down untraceable borrowers; invites applications from agencies
6 years, 11 months ago

Fraud-hit Punjab National Bank to hire detectives to hunt down untraceable borrowers; invites applications from agencies

Firstpost  

Fraud-hit Punjab National Bank has invited applications for empanelment of detective agencies to locate its untraceable borrowers New Delhi: Fraud-hit Punjab National Bank has invited applications for the empanelment of detective agencies. The lender now wants to hire detectives to locate its untraceable borrowers, as it looks to “significantly” supplement efforts to recover bad loans that surged to Rs 57,519 …

PNB fraud case: RBI says examining enforcement action
7 years ago

PNB fraud case: RBI says examining enforcement action

Live Mint  

New Delhi: With multiple agencies probing the alleged Rs13,000 crore fraud at state-run Punjab National Bank, the Reserve Bank of India says it has conducted its scrutiny and the matter is currently under examination for “enforcement action”. Asked to provide details of action taken by the RBI after receiving input of suspected fraud at PNB and steps being taken to …

Loan fraud case: CBI books, raids Totem Infrastructure Limited
7 years ago

Loan fraud case: CBI books, raids Totem Infrastructure Limited

Deccan Chronicle  

HYDERABAD: The Central Bureau of Investigation carried out searches at several places in the city after registering a case against Hyderabad- based company M/s Totem Infrastructure Limited for duping a consortium of eight banks including Union Bank of India to the tune of Rs 1,394 crore. The Union Bank of India had filed a complaint with the Central Bureau of …

PNB fraud fallout: RBI starts special audit of public sector banks
7 years ago

PNB fraud fallout: RBI starts special audit of public sector banks

India TV News  

Rattled by spate of banking frauds, RBI has initiated special audit of state-owned lenders with focus on trade financing activities, especially relating to issuance of letters of undertakings by them, sources said. In view of the recent Rs 12,646-crore PNB scam, done through fraudulent issuance of LoUs by connivance of the bank’s staff, it was pertinent for the regulator RBI …

PNB fraud: RBI starts special audit of public sector banks, asks details of LoUs
7 years ago

PNB fraud: RBI starts special audit of public sector banks, asks details of LoUs

Firstpost  

Most of the big banking frauds which were unearthed in the recent past, including the one perpetuated by diamantaire Nirav Modi and his associates, pertain to trade finance. New Delhi: Rattled by spate of banking frauds, RBI has initiated special audit of state-owned lenders with focus on trade financing activities, especially relating to issuance of letters of undertakings by them, …

PNB fraud: RBI initiates special audit of PSBs with focus on trade finance
7 years ago

PNB fraud: RBI initiates special audit of PSBs with focus on trade finance

ABP News  

New Delhi: Rattled by spate of banking frauds, RBI has initiated special audit of state-owned lenders with focus on trade financing activities, especially relating to issuance of letters of undertakings by them, banking sources said. In view of the recent Rs 12,646-crore PNB scam, done through fraudulent issuance of LoUs by connivance of the bank's staff, it was pertinent for …

PNB scam fallout: Probe NPAs above Rs 50 cr, report fraud to CBI, finance ministry directs PSBs
7 years, 1 month ago

PNB scam fallout: Probe NPAs above Rs 50 cr, report fraud to CBI, finance ministry directs PSBs

Firstpost  

Finance Ministry on Tuesday directed public sector banks to probe all NPA accounts of over Rs 50 crore for possible fraud and accordingly report the cases to CBI. New Delhi: Finance Ministry on Tuesday directed public sector banks to probe all NPA accounts of over Rs 50 crore for possible fraud and accordingly report the cases to CBI. The direction …

Bank frauds: Gujarat model's underbelly
7 years, 1 month ago

Bank frauds: Gujarat model's underbelly

Deccan Chronicle  

Nirav Modi joins the list of smart young Gujarati men, including Harshad Mehta, Hiten Dalal, Jatin Mehta and Ketan Parekh, each of whom has taken thousands of crores from taxpayers in the last few years. Of the Harshad Mehta matter, Mr Basu and Ms Dalal write that “the scam was so gigantic that it was easy to lose perspective — …

Bank scams: Three fresh cases of financial fraud reported
7 years, 1 month ago

Bank scams: Three fresh cases of financial fraud reported

India TV News  

Three fresh cases of financial fraud have come to light after the CBI filed cases against a jeweller, a businessman and a public servant on complaints by three different banks earlier this week, an official said on Saturday. On Thursday, the Central Bureau of Investigation registered a case against diamond jewellery exporter Dwarka Das Seth International for an alleged bank …

PNB Rs 11,400 cr fraud case: Finance Minister Arun Jaitley slams regulators' failure to detect scam
7 years, 1 month ago

PNB Rs 11,400 cr fraud case: Finance Minister Arun Jaitley slams regulators' failure to detect scam

Firstpost  

New Delhi: Finance Minister Arun Jaitley today blamed inadequate oversight by regulators and auditors as well as sloppy bank management for the Rs 11,400-crore fraud at India’s second-biggest state-owned lender, and said if needed law would be tightened to punish fraudsters. Without naming either the alleged kingpin of the fraud, billionaire jeweller Nirav Modi, or PNB, he said it is …

Auditor group ICAI, PwC to probe into Rs11,400 crore PNB fraud
7 years, 1 month ago

Auditor group ICAI, PwC to probe into Rs11,400 crore PNB fraud

Live Mint  

New Delhi/Mumbai: The Institute of Chartered Accountants of India, a state-controlled regulator for the sector, has said it is probing whether auditors played a role in perpetrating the alleged Rs11,400 crore fraud that Punjab National Bank unearthed last week. The ICAI said on Thursday it has asked the Securities and Exchange Board of India, Punjab National Bank and federal investigating …

How banking frauds can be nipped in the bud
7 years, 1 month ago

How banking frauds can be nipped in the bud

Live Mint  

The Nirav Modi case has once again cast the spotlight on the dark corners of the Indian banking universe. Second, as Charan Singh and others at the Indian Institute of Management, Bangalore have suggested in a 2016 paper, Frauds In The Indian Banking Industry, banks can also set up a special fraud monitoring agency, with officials specially trained to detect …

PNB fraud might impact Narendra Modi govt's ease of doing business initiative: PHD Chamber
7 years, 1 month ago

PNB fraud might impact Narendra Modi govt's ease of doing business initiative: PHD Chamber

Firstpost  

New Delhi: PHD Chamber of Commerce and Industry on Tuesday expressed concern over what it termed as the “crisis” triggered in the banking industry following the fraud detected in state-run Punjab National Bank. In a statement, PHD Chamber said it is surprised how the bank’s internal audit system failed to detect anomalies in transactions leading to the alleged fraudulent loans …

PNB-Nirav Modi bank scam: Both internal, external auditors failed to detect fraud, CA professionals must introspect, says Arun Jaitley
7 years, 1 month ago

PNB-Nirav Modi bank scam: Both internal, external auditors failed to detect fraud, CA professionals must introspect, says Arun Jaitley

India TV News  

Reacting to the country’s biggest ever bank fraud, Finance Minister Arun Jaitley on Tuesday said that the PNB scam of Rs 11,400 crore involving billionaire jeweler Nirav Modi was a result of failure of management and auditors, adding that the government will chase down those who cheat the banking system. If both internal and external auditors have looked other way …

PNB fraud: Finance Ministry writes to RBI, seeks view on lapses
7 years, 1 month ago

PNB fraud: Finance Ministry writes to RBI, seeks view on lapses

India TV News  

The government today swung into action with the Ministry of Finance writing a letter to the Reserve Bank of India asking how the fraudulent transactions of diamond jeweller Nirav Modi were not report at any levels in the Punjab National Bank. In its letter, the Department of Financial Services sought the Central bank’s view on the lapses in the banking …

Punjab National Bank scam: RBI data revealed through RTI shows India's fraud problems extend far beyond PNB
7 years, 1 month ago

Punjab National Bank scam: RBI data revealed through RTI shows India's fraud problems extend far beyond PNB

Firstpost  

Investors may have been shocked when one of India’s biggest banks disclosed a $1.77 billion fraud by billionaire jeweller Nirav Modi, but the central bank has recorded data that shows the problem runs far deeper and wider New Delhi/Mumbai: Investors may have been shocked when one of India’s biggest banks disclosed a $1.77 billion fraud by billionaire jeweller Nirav Modi, …

Punjab National Bank alerts other lenders about perpetrators’ modus operandi
7 years, 1 month ago

Punjab National Bank alerts other lenders about perpetrators’ modus operandi

The Hindu  

The Punjab National Bank, which is reeling from a ₹11,500-crore fraud, has reached out to other lenders to alert them about the perpetrators’ modus operandi. He had fraudulently issued letters of undertaking on behalf of some companies for availing buyers’ credit from overseas branches of Indian banks. In one instance, LoUs were opened in favour of overseas branches of Indian …

PNB Rs 11,000-crore fraud: Recurring scams can erode investor’s faith in banks; incident calls for stronger checks
7 years, 1 month ago

PNB Rs 11,000-crore fraud: Recurring scams can erode investor’s faith in banks; incident calls for stronger checks

Firstpost  

Banking analysts and banking industry officials do not have any further details about the specifics of this particular fraud involving Punjab National Bank. Earlier in the day, state-run lender Punjab National Bank reported fraudulent transactions worth Rs 11,300 crore to stock exchanges and law enforcement agencies. The bank also filed two complaints with the Central Bureau of Investigation against billionaire …

Government admits to cases of fraudulent withdrawal of money through Adhaar
7 years, 1 month ago

Government admits to cases of fraudulent withdrawal of money through Adhaar

The Quint  

New Delhi, Feb 6 The government on Tuesday admitted that there had been incidents of money being fraudulently withdrawn from bank accounts using the customers' Aadhaar number.As per the information, at least six such cases had been reported by four Public Sector Banks so far involving fraud of around Rs 1.5 crore, Parliament was told. "As per data reported by …

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