Rs.300 crore fraud in Punjab National Bank, BoB and IOB Bank

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A big bank fraud of Rs.300 crore took place in three public sector banks – Punjab National Bank, Bank of Baroda and Indian Overseas Bank. This fraud was conducted by Sukhwinder Singh Chhabra who hid in Thailand after the fraud came to light.

Now, the government has taken action against him. The Enforcement Directorate (ED) is now preparing to bring Chhabra back to India and has reported the case to the special court of Prevention of Money Laundering Act in Chandigarh.

Accusations and Investigation

Chhabra is accused of absconding in a case involving fraud of approximately Rs 300 crore from Indian Overseas Bank, Punjab National Bank, and Bank of Baroda. The Central Bureau of Investigation (CBI) initiated an investigation into the case. After the ED registered the case, an investigation was started under the sections of money laundering. A charge sheet has been filed in the court regarding the case, which is currently under trial in the special court for money laundering.

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Actions Taken by ED

The ED intends to first send summons to bring the accused back from Thailand. Following this, further action will be taken with the assistance of the Home Ministry. It has been discovered that due to the collusion between Indian Overseas Bank officials and some businessmen, the banks suffered losses amounting to crores of rupees.

Misuse of Position by Bank Officials

The accused bank officials misused their positions to benefit a Hong Kong company. The scam came to light when the Delhi CBI exposed it on August 8, 2016. The Enforcement Directorate subsequently registered a case against 50 individuals, including Sukhwinder Singh Chhabra. The allegation was that Ashu Mehra, who was posted in the Forex Department of the Chandigarh branch of Indian Overseas Bank since 2010, along with others, facilitated benefits for the Hong Kong company. As a result, Indian Overseas Bank, Punjab National Bank Dubai, and Bank of Baroda Bahamas Branch incurred a loan loss of US $47.86 million.

Unauthorized Transactions and Non-Repayment of Loans

Investigations revealed that the Hong Kong-based company, M/s Color Web Limited, approached Punjab National Bank for payments. Letters of comfort were issued to the Dubai and Bahamas branches of Bank of Baroda without proper authorization. Based on these letters, both banks released payments worth crores of rupees to the overseas companies. However, the accused company failed to repay the loans taken from these banks.

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Comments

3 COMMENTS

  1. The accused bank officials misused their positions to benefit a Hong Kong company.
    Where our personal interests wake up for giving and taking benefits, immediately the fraudusters has chance with liberty to misappropriate of funds and step down our
    country’s economy.

    first ED must tight the Bank officials and simultaneously try to carry the culprit under repatriation MoU.

  2. We approach IOB rajapalayam branch for business loan. But refused even we have current account past 25 years.
    Raghavendra industries
    Rajapalayam

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