CBI arrests MD of Private company in Rs.183 Crore Fake Bank Guarantee Scam in PNB Bank
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Recently, a big scam of Bank Guarantee occurred in Punjab National Bank (PNB). This Bank Guarantee (BG) scam of Rs.183 crore is being investigated by Central Bureau of Investigation (CBI).
Now, the Central Bureau of Investigation (CBI) has arrested the Managing Director of an Indore-based private company and a private person in a ₹183 Crore Fake Bank Guarantee Scam.
Forged bank guarantees were submitted by an Indore-based company to the Madhya Pradesh Jal Nigam Limited (MPJNL). CBI registered three separate cases following directions from the Hon’ble High Court of Madhya Pradesh on May 9, 2025.
It was alleged that in 2023, the company secured three irrigation projects in the districts of Chhatarpur, Sagar, and Dindori, Madhya Pradesh, with a total value of ₹974 crore. To support these contracts, the company submitted eight fake bank guarantees worth ₹183.21 crore. On the promise of these forged guarantees, it also received approximately ₹85 crore as mobilization advances from MPJNL.
MPJNL verified the Bank Guarantees via email and received fraudulent email responses impersonating the official domain of Punjab National Bank (PNB). These emails appeared to be genuine and relying on these false confirmations, MPJNL awarded three contracts worth ₹974 crore to an Indore-based private company.
The arrested accused will be produced before the Special Magistrate, Indore Court.
CBI had launched a massive search operation on June 19 and 20, 2025, across 23 locations in five states – New Delhi, West Bengal, Gujarat, Jharkhand, and Madhya Pradesh. During these searches, two people were arrested, including a Senior Manager from Punjab National Bank based in Kolkata.
So far, the investigation has revealed that a syndicate based in Kolkata was involved in creating and distributing fake bank guarantees to win government contracts in different states.
Also Read: Fake Bank Guarantee Fraud of Rs.294.49 crore reported in Punjab National Bank
Instead of relying on SFMS, still many Govt Dept relying on age old system for confirmation. This may be wilful , dele erate or ignorance. However, such mischief is not an isolated instance rather this is very much rampant and used specially for bid / mobilisation advance BG. In such cases not only contractor / applicant is involved but also officer from beneficiary side or bank official may also be involved. However, domain official mail may be used by any official in his Pvt mobile/ laptop making confirmation process very much vulnerable.