Govt asks Punjab National Bank to share scam details with ICAI

The govt has asked PNB and probe agencies to share details of the Rs 13,000 crore scam with ICAI.

New Delhi: The government has asked PNB and probe agencies to share details of the Rs 13,000 crore scam with chartered accountants' apex body ICAI, which is looking into the systemic issues related to the fraud, an official said.

A high-level group constituted by the Institute of Chartered Accountants of India (ICAI) is studying specifically the systemic issues involved in Punjab National Bank fraud and would also suggest remedial measures for strengthening the banking system.

The 10-member panel, which has met at least three times, is awaiting more information, ICAI President Naveen N D Gupta said today.

Speaking to reporters here, he said the government has asked the bank, the CBI and Enforcement Directorate to share information about the scam with the institute.

A multi-agency probe is progressing into the more than Rs 13,000 crore scam at PNB, involving diamond merchants Nirav Modi and Mehul Choksi. The fraud was mainly perpetrated through issuing of fraudulent Letters of Undertaking (LoUs) with the help of PNB officials.

The panel has made some preliminary conclusions based on available information, which indicates possible lapses at the lender, according to S B Zaware, who is the convenor of the committee.

In the wake of the fraud coming to light, Gupta said, the institute has also sent out notices to PNB auditors.

"The objective of such study is two-fold -- one to suggest changes to strengthen the existing banking system and the other to guide the chartered accountants conducting audits to verify the systems in place accordingly," the institute had said last week.

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