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WARRANTS ISSUED FOR TWO SUSPECTS IN $2 BILLION INDIAN BANK FRAUD

13 April 2018

A special court in India has issued warrants against two Indian jewellers who are central figures in an alleged $2 billion fraud at the state-run Punjab National Bank (PNB).

Questions are now being asked of overseas branches of Indian banks that issued loans to companies owned by the two jewellers against bank guarantees – guarantees that were issued fraudulently by some employees at PNB.

The case, which is believed to be India’s largest ever bank fraud, has led to 20 arrests so far; including the bank’s auditor.

The court in Mumbai approved the non-bailable warrants against jewellers Nirav Modi and Mehul Choksi, who have both denied the allegations. Indian authorities say both men left the country before the fraud - which is believed to have started seven years ago - was uncovered in February.

While Indian investigators have some way to go to conclude their investigations, one thing is perfectly clear: PNB’s procedures for preventing workplace fraud were woefully inadequate.

The scale and length of time of the fraud and the suspected involvement of a number of PNB staff are clear indicators that the bank had not taken all the necessary steps to prevent and identify workplace crime under its roof.

Read our article: HOW TO PREVENT WORKPLACE FRAUD


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