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Punjab National Bank detects $1.8 bn fraud at a Mumbai branch, Links to Nirav Modi

Punjab National Bank, the second largest public sector bank in India

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Punjab National Bank is India's second largest bank. Wikimedia Commons
Punjab National Bank is India's second largest bank. Wikimedia Commons
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  • Punjab National bank has detected a $1.8 billion fraud
  • The fraud happened in their Mumbai branch
  • The matter has been referred to law enforcement

Punjab National Bank, the second largest public sector bank in India, has detected a $1.8 billion fraud in one of its branches here, the bank said in a regulatory filing to the stock exchanges on Wednesday.

Punjab National Bank experiences a fraud of $1.8 bn.
Punjab National Bank experiences a fraud of $1.8 bn.

“The bank has detected some fraudulent and unauthorised transactions (messages) in one of its branch in Mumbai for the benefit of a few select account holders with their apparent connivance,” the filing by the bank said.

It had quoted the quantum of such transactions was to the tune of around $1,771.69 million (around Rs 11,515 crore).

The amount of fraudulent transactions is equivalent to eight times the bank’s net income of about Rs 1,320 crore ($206 million).

Also Read: Raghuram Rajan: The Man Who Revolutionized The Indian Banking System

This case has happened at a time when the Indian banking system is already grappling to tackle its swelling non-performing assets.

“Based on these transactions other banks appear to have advanced money to these customers abroad. In the bank these transactions are contingent in nature and liability arising out of these on the bank shall be decided based on the law and genuineness of underlying transactions,” the filing said.

Punjab National Bank's Mumbai branch is now under high scrutiny. Wikimedia Commons
Punjab National Bank’s Mumbai branch is now under high scrutiny. Wikimedia Commons

The bank informed: “The matter is already referred to law enforcement agencies to examine and book the culprits as per law of the land.”

On February 5, the Central Bureau of Investigation had booked billionaire diamond service provider Nirav Modi, his brother, wife and an enterprise companion for allegedly cheating Punjab National Bank of over Rs 280.70 crore last year.

Also Read: Con man in Delhi Duped Amazon for over Rs. 50 Lakh; Arrested by Delhi Police for Fraud

Following the complaint, the CBI registered a FIR under the Indian Penal Code sections related to criminal conspiracy, cheating and provisions of the Prevention of Corruption Act against the four.

The stock of Punjab National Bank was trading at Rs 149.20 per share, down 7.70 percent at the BSE at 1.59 p.m. IANS

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Mumbai and Delhi Will Host A Workshop By American Choreographer

As a choreographer, he has a list of credits spanning live/stage, TV and music videos for artistes like Missy Elliot, The Pussycat Dolls and Eminem.

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American choreographer to hold workshops in Mumbai, Delhi
American choreographer to hold workshops in Mumbai, Delhi. Flickr

American singer-songwriter-dancer-choreographer Bobby Newberry will organise a ‘Jazz Funk Master Class’ in India in September.

“I have never been to India and it’s a country with such passion, love for dance and arts. I really felt that I should visit India and throw myself into their love and culture,” Newberry said in a statement.

“I want the dancers to grow as artistes and be stronger than they are now. So, for this I have initiated the method of dance workshop. I want the dancers to come in with open heart and mind rather than with any judgement, only then they will learn the real sense of dance.

Choreographer, Dance, Music, Delhi, Mumbai
Zumba Dance, wikimedia commons

“I know India has got so much talent and I feel they are so hungry to learn. I am just so excited to give it a start with the workshop in Mumbai.”

The workshops will be held here on September 1 and in Delhi on September 2.

As a choreographer, he has a list of credits spanning live/stage, TV and music videos for artistes like Missy Elliot, The Pussycat Dolls and Eminem. (IANS)