The new alleged fraud of around 91 million rupees involves officials of a little known company called Chandri Paper and Allied Products Pvt Ltd, the Central Bureau of Investigation said in the complaint posted on its website.
India’s Punjab National Bank (PNB) has detected another small fraud at a Mumbai branch which is at the centre of $2 billion fraud, according to a complaint with the federal police.
The new alleged fraud of around 91 million rupees involves officials of a little known company called Chandri Paper and Allied Products Pvt Ltd, the Central Bureau of Investigation said in the complaint posted on its website, reported Reuters.
Meanwhile, the Enforcement Directorate (ED) on Wednesday has sent Letters Rogatory (LR) to seven more countries where Nirav Modi and Mehul Choksi have businesses and properties in connection with their frauds.
The Punjab National Bank in February had detected a 1.77 billion-dollar fraud, wherein noted jewellery designer Nirav Modi had acquired multiple letters of undertaking to avail credit from a number of banks.
The billionaire businessman, who owns Firestarter Diamond International Private Limited, and Choksi have been accused of defrauding PNB of Rs 12,600 crore, including Rs 1,300 crore being added to the fraud kitty on February 26.
Expressing deep anguish over a spate of banking frauds, RBI Governor Urjit Patel also reacted on PNB scam saying that like the 'Neelakantha', the central bank will consume poison and face brickbats, but will persist with endeavour to become better with each trial.
Breaking silence over the Rs 12,967 crore scam at PNB, he said: "I have chosen to speak today to convey that we at the Reserve Bank of India also feel the anger, hurt and pain at the banking sector frauds and irregularities."
Delivering a lecture at the Gujarat National Law University here, he said: "In plain simple English, these practices amount to a looting of our country's future by some in the business community, in cahoots with some lenders."
Patel said RBI has in place asset quality review of banks and "we are doing all we can to break this unholy nexus".
Invoking mythology, he said RBI has undertaken the cleaning up of the country's credit culture as the Mandara mount or the churning rod in the Amrit Manthan or the Samudra Manthan of the modern day Indian economy..
Until the churn is complete and the nectar of stability safely secured for the country's future, someone must consume the poison that emanates along the way, he said.
(With inputs from Reuters)
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 "PNB detects new fraud at Mumbai branch at heart of $2 billion fraud")
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