PNB fraud: CBI files second chargesheet

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It was noted that the scrip were trading at 10.99 per cent lower at Rs 76.50 on NSE in the morning trade today. The PNB had on Monday divested its two executive directors of all powers.

Diamond merchant Mehul Choksi and his companies under the Gitanjali Group, have been named in the supplementary charge sheet filed by the Central Bureau of Investigation in the over 2 billion dollar Punjab National Bank (PNB) fraud case. Ananthasubramanian was earlier with the PNB.

The state-owned bank had reported standalone profit of Rs 261.90 crore in the fourth quarter of the preceding fiscal 2016-17.


On Tuesday, the CBI had named three companies and 22 individuals in its first chargesheet and framed charges under section 120B, read with Sections 409 and 420 of the Indian Penal Code (IPC) and relevant provisions of Prevention of Corruption (PC) Act.

Of this, the bank made payments of Rs6,500 crore to seven banks honouring these LoUs in the March quarter, that is expected to reflect in the quarterly results.

Incidentally, BDO India LLP, the firm engaged by PNB to conduct a forensic investigation into the fraud committed by Modi and his companies, has also shared its findings with the USA bankruptcy court.


The quarterly loss of Rs 13,416 crore was attributed mainly to higher provisioning particularly to account for bad assets rising more than three-fold from Rs 4,910.39 crore to Rs 16,202.82 crore.

Besides, the housing finance firm's Net Interest Income (NII) registered a growth of 36 per cent to Rs 451.8 crore from Rs 332.7 crore. "The total fraud is worth Rs 13,500 crore, out of which Choksi through his companies has cheated the bank of Rs 7080.86 crore. After including outstanding amounts under other credit facilities to the above entities, the amount involved now works out to Rs 14,356.84 crore", the bank said in its notes to accounts. According to the reports, PNB detected the multi-crore scam. "Mr. Shetty obtained quotes by Debajyoti Dutta, proprietor of Rishika Financials for Mr. Choksi's companies for the issuance of LoU by PNB out of which Mr. Shetty compelled Mr. Dutta to part with an aggregate sum of ₹1,02,53,664 as illegal gratification by way of cheques for himself and his family by threatening Mr. Dutta of stopping his business".


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