NEW DELHI: The Finance Ministry will quickly name a meeting of best officials of scam-hit Punjab National Bank and different lenders to amicably unravel the problems concerning cost liabilities of Rs 11,400 crore coming up from the alleged fraud, resources said.
India's 2d largest financial institution PNB has said it will honour all its bonafide commitments after the scam surfaced involving allegedly fraudulent use of Letter of Undertakings (LOUs) by means of jeweller Nirav Modi and his pals.
The government is of the view that the issue is between PNB and different public sector banks and it will have to be resolved amicably as soon as possible, resources said.
Keeping this in thoughts, the Department of Financial Services would quickly name a meeting of best officials of all of the banks involved within the subject, resources added.
The PNB fraud relates to issuance of fake Letters of Understanding (LoUs) to corporations associated with billionaire jeweller Nirav Modi by means of errant PNB workers, which enabled these corporations to get patrons credit from international branches of other Indian lenders.
Banks said to be at once or not directly suffering from the scam come with SBI, Allahabad Bank and Union Bank of India.
Last month, PNB had lodged an FIR with CBI stating that fraudulent LoUs value Rs 280.7 crore have been first issued on January 16. At that point, PNB had said it used to be digging into information to inspect the magnitude of the fraud.
In the complaint, PNB had named three diamond corporations -- Diamonds R Us, Solar Exports and Stellar Diamonds - announcing they'd approached it on January 16 with a request for patrons credit for making cost to in a foreign country providers.
The case is already being probed by means of more than one agencies and the CBI has arrested a common manager-rank officer of the Punjab National Bank in reference to the alleged fraud.
Rajesh Jindal, who used to be the pinnacle of the Brady House, Mumbai, branch of the financial institution throughout 2009-11, used to be also taken into custody on Tuesday night.
It is alleged that the issuance of Letters of Undertaking (LOU) to Nirav Modi crew corporations without sanctioned limits started throughout his tenure.
Modi runs a global jewellery empire that reaches from India to New York, with a string of high-end brands. He and his family fled India weeks earlier than the financial institution registered a prison case with the CBI on January 31.
India's 2d largest financial institution PNB has said it will honour all its bonafide commitments after the scam surfaced involving allegedly fraudulent use of Letter of Undertakings (LOUs) by means of jeweller Nirav Modi and his pals.
The government is of the view that the issue is between PNB and different public sector banks and it will have to be resolved amicably as soon as possible, resources said.
PNB fraud: How Nirav Modi's corporations embezzled crores
02:26
Keeping this in thoughts, the Department of Financial Services would quickly name a meeting of best officials of all of the banks involved within the subject, resources added.
The PNB fraud relates to issuance of fake Letters of Understanding (LoUs) to corporations associated with billionaire jeweller Nirav Modi by means of errant PNB workers, which enabled these corporations to get patrons credit from international branches of other Indian lenders.
Banks said to be at once or not directly suffering from the scam come with SBI, Allahabad Bank and Union Bank of India.
Last month, PNB had lodged an FIR with CBI stating that fraudulent LoUs value Rs 280.7 crore have been first issued on January 16. At that point, PNB had said it used to be digging into information to inspect the magnitude of the fraud.
In the complaint, PNB had named three diamond corporations -- Diamonds R Us, Solar Exports and Stellar Diamonds - announcing they'd approached it on January 16 with a request for patrons credit for making cost to in a foreign country providers.
The case is already being probed by means of more than one agencies and the CBI has arrested a common manager-rank officer of the Punjab National Bank in reference to the alleged fraud.
Rajesh Jindal, who used to be the pinnacle of the Brady House, Mumbai, branch of the financial institution throughout 2009-11, used to be also taken into custody on Tuesday night.
It is alleged that the issuance of Letters of Undertaking (LOU) to Nirav Modi crew corporations without sanctioned limits started throughout his tenure.
Modi runs a global jewellery empire that reaches from India to New York, with a string of high-end brands. He and his family fled India weeks earlier than the financial institution registered a prison case with the CBI on January 31.
PNB fraud: Finance Ministry to meet bankers to resolve payment issue
![PNB fraud: Finance Ministry to meet bankers to resolve payment issue]()
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February 21, 2018
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