The FRRB restricts reviews to the published general-purpose financial statements only and that its work would not be verification of the entire audit (re-audit) or review of working papers of the auditors concerned, as per the ICAI website. In one of the biggest scams in the Indian banking industry, the public sector lender has disclosed $1.77 billion (nearly Rs 11,400 crore) fraud perpetrated by way of fraudulently acquiring Letter of Undertakings (LoUs) of the Punjab National Bank and probe agencies are already investigating the case.
A multi-agency probe is underway against diamantarie Nirav Modi and his relative as well as close associate Mehul Choksi have also come under the scanner of SEBI and stock exchanges. Choksi is the Managing Director of Gitanjali Gems. On Thursday, Punjab National Bank Chairman Sunil Mehta had said it has the capability to recover the dues from Modi and promised to take action against all wrongdoers. In the wake of the fraud, the lender has suspended at least ten officers. The bank detected the fraud in which Modi allegedly acquired fraudulent LoUs from one its branches for overseas credit from other Indian lender.