The Punjab National Bank (PNB) on Saturday clarified that Rs 9.10 crore fraud unearthed pertaining to Chandri Paper and Allied Products was not a new fraud.
“It is not a new fraud. Fraud had already been declared in respect of fradulent and unauthorised issuance of two LoUs for Rs 9.10 crore on the account of Chandari Paper and Allied Products. The fraud had been reported to RBI on February 13, 2018 and simultaneously, on the same day compliant was lodged with CBI which has now been registered on March 9, 2018,” the bank said in a regulatory filing in the BSE.
Earlier, the Central Bureau of Investigation (CBI) has filed another case against former Deputy Manager of PNB, Gokulnath Shetty — who was arrested in multi-crore fraud involving Nirav Modi and Mehul Choksi — for allegedly issuing Letters of Undertaking worth Rs 9.10 crore to Chandri Papers