There is another scandal in Punjab National Bank in India. The new case of financial fraud is also linked to the Brady House branch located in Mumbai. Neerav Modi and Mehul Choksi had done the biggest banking scam in India by this branch. The CBI has started scrutinizing a complaint from Punjab National Bank on this issue.

According to the investigating agency CBI, officials of Chandari Paper and Allied Products Pvt Ltd have lent Rs 9.1 crore to the bank. Diamond trader Neerav Modi and his uncle Mahul Choksi had tied up with officials of the same branch of PNB and lent more than $ 2 billion (Rs 13,580 crore) to the bank. Gokulnath Shetty and Manoj Kharat, who have retired from Brady House branch, have been arrested but Neerav and Mehul Choksi are absconding from India. The investigating agencies have also issued notices against both for appearing for questioning. But, the two accused of the Thousand Crores scam have refused to return to India.

Neerav Modi and Mehul Choksi had lent more than Rs 13 thousand crore to PNB through Letters of Undertaking (LOU). Together with Gokulnath and Manoj Kharat, both of them were issuing the LOUs without any security. After retiring Gokulnath, another officer was appointed at his place, who refused to issue LOU without any security. After this the secret of the scam was open.

According to the CBI, Neerav and Mehul also did not give minimum commission to PNB's Brady House branch. The investigation agency says that PNB released LOUs to Neerav and Mehul in free of cost. 150 LOUs worth Rs 6,498 crore were released from the Brady House branch. In this case, the bank also suffered a loss of crores of rupees as a commission. After the scam of thousands of crores, the RBI has restricted the LOU itself.

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