New Fraud of 3800 Crore After Budget 2019

Union budget was on Jul 5th and what happens on Jul 6th, just a day later The bank declares another fraud of 3800 crore as if we and the bank have already recovered from the Nirav Modi fraud.

Public sector bank and lender, Punjab National Bank said on July 6th it has identified a fraud of more than Rs. 3,800 crore by Bhushan Power and Steel Ltd (BPSL) and has announced it to the Reserve Bank of India (RBI). PNB said Bhushan Power and Steel Ltd misused bank reserves and controlled its books of records to raise assets from consortium moneylender banks.

The state-run bank has reported a new fraud at a time when it is recovering from a major financial embezzlement of around USD 2 billion (around Rs13,000 crore) by diamond merchant Nirav Modi that was reported in February 2018.

“On the basis of forensic audit investigation findings and CBI filing FIR, on suo moto basis, against the company and its directors, alleging diversion of funds from banking system, a fraud of Rs 3,805.15 crore is being reported by bank to RBI,” Punjab National Bank (PNB) said in a regulatory filing.

“It has been observed that the company has misappropriated bank funds, manipulated books of accounts to raise funds from consortium lender banks. At present, the case is at NCLT which is in advance stage and the Bank expects good recovery in the account,” PNB added.

PNB said the bank has already made provisions amounting to Rs. 1, 932.47 crore, as per prescribed prudential norms, for the BPSL account.

If government try to resolve properly political system and economical system together, both will collapse.

And, Here is solution by PM Modi expand economy so big that this problem looks smaller. I believe in a long run it will fail and you cannot expand and grow big when your heart has cancer.

This Article is written by Yatesh chadda. He can be reached at [email protected]