Nirav Modi scam: ICAI panel yet to receive information from PNB

Mumbai: The Institute of Chartered Accountants of India (ICAI) on Thursday said it is yet to receive information from Punjab National Bank on the nearly Rs 13,000 crore scam involving Nirav Modi.

A high-level group constituted by the institute is studying specifically the systemic issues involved in the PNB fraud and would also suggest remedial measures for strengthening the banking system.

Having failed to get any information from the bank, the group, set up in February, had sought government's intervention to obtain details related to the fraud.

"The Ministry of Corporate Affairs and the Ministry of Finance wrote a letter to PNB and asked it to give information to the ICAI. But, so far we have not received any information from the bank," ICAI Member S B Zaware told reporters here today.

When the group asked for information, PNB officials raised questions about whether the ICAI is statutorily required to find out this information when there is CBI and ED are doing investigations, Zaware, who is also the committee's convenor, said.

He said the group had requested PNB some documents, details of the processes and other information related to the scam.

"We could not get information from PNB. They are not at all co-operating," Zaware said.

According to him, the ICAI has also asked all the statutory auditors of PNB's Brady House branch, where the scam took place, to appear before its Board of Discipline to give their explanation.

In February, the second largest public sector bank PNB detected fraudulent transactions at the Brady House branch in Mumbai.

The biggest ever banking fraud of more than Rs 13,000 crore was allegedly committed by billionaire diamantaire Nirav Modi and his uncle Mehul Choksi in connivance with some officials of PNB. Multiple agencies, including the CBI, the ED and the SFIO, are probing the case.