Shocked PNB suspends 10 employees in Rs 11365 crore fraud case

Following the unearthing of a massive 2011 vintage financial scam of the order of Rs 11,365 crore in a single branch, the Punjab National Bank has suspended 10 officials. The suspended employees were said to be in cahoots with jewellery designer Nirav Modi in embezzling the funds.

On Wednesday, the PNB officials detected the massive fraud in one of its branches in Mumbai and immediately lodged two complaints. The fraud has shaken the PNB, which is considered the second largest public sector bank in the country.

"The bank has detected some fraudulent and unauthorised transactions (messages) in one of its branch in Mumbai for the benefit of a few select account holders with their apparent connivance," the filing by the bank said.

Quite shockingly, the amount of fraudulent transactions is eight times the bank's net income of Rs 1,320 crore.

The issue has already been referred to the investigative authorities. Nirav Modi is already in the dock for defrauding PNB to a tune of Rs Rs 280.70 crore in 2017. Based on the complaint, the CBI registered a FIR under the Indian Penal Code sections related to criminal conspiracy, cheating and provisions of the Prevention of Corruption Act against the four persons, including Modi, his wife and son.