PNB scam: CVC summons PNB, Fin Min officials

ANI | Updated: Feb 17, 2018 13:30 IST

New Delhi [India], Feb. 17 (ANI): After a major crackdown by Enforcement Directorate (ED), Central Bureau of Investigation (CBI) and Income Tax (IT) Department, one more law enforcement agency has swung into action in the Punjab National Bank (PNB) fraud case. The Central Vigilance Commission (CVC) summoned the PNB management and Finance Ministry officials to appear before it.

Top officials of PNB and the Finance Ministry have been asked to appear before the CVC on February 19.

CVC is an apex governmental body to address governmental corruption.

Sources have told ANI that MD and CEO, Punjab National Bank, Sunil Mehta is likely to appear before CVC on Monday at 11 a.m.
He will be accompanied by Chief Vigilance Officer (CVO) of PNB.

On behalf of the Ministry of Finance, additional secretary, department of financial services is likely to be present.

Sources have also revealed to ANI that CVO PNB is most likely to give a presentation to CVC about the fraud which has shaken the banking system.

Further, before going to CVC, top management of PNB and senior officials of department of financial services had a meeting through video conferencing yesterday, according to sources.

On Monday, CVC will review the vigilance monitoring system of PNB and decide the necessary course of action to be taken.

CVC is the fourth government agency after ED, CBI and IT department which has swung into action.

According to sources, the Indian Banking Association will also hold a meeting with the chiefs of all Public Sector Undertaking (PSU) banks through video conferencing from its headquarters in Mumbai later today.

For the unversed, Punjab National Bank detected a 1.77 billion dollars scam in which jeweler Nirav Modi acquired fraudulent letters of undertaking from one of its branches for overseas credit from other Indian lenders.

The scam was started in 2011 and was detected in the third week of January this year, after which the PNB officials reported it to the concerned agencies.

Meanwhile, the PNB filed a second complaint with the CBI on February 13.

The CBI had received the complaint from PNB on January 28 and a case was registered in the case on January 31. (ANI)