PNB fraud case: Those cheating the banking system will be chased down, says Finance Minister Arun Jaitley

Finance minister Arun Jaitley said that the state will chase down those who cheat the banking system on Thursday. He added that auditors have to look inwards as to why they were unable to detect irregularities in the PNB fraud case.

Jaitley said: “Agencies supervising the Rs 11000 crore PNB case need to assess as to what new system has to be put in place to detect the irregularities.”

The finance minister added that the agencies will have ensure that stray cases are nipped in the bud to prevent further frauds.

The Jaitley further stated that when an authority is given to managements then they are expected to utilize it effectively and in the right manner.

The second largest state bank, PNB, recently detected the fraudulent transactions in which jeweller Nirav Modi acquired letters of undertaking (LoUs) from one of its branches in Mumbai for overseas credit from other Indian lenders.

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However, Modi has denied allegations levelled against him by PNB.

According to complaint lodged with the police, two officials of PNB fraudulently steered credit to firms linked to Modi and entities tied to Jewellery retailer Gitanjali Gems, led by Modi’s uncle Mehul Choksi.