CBI Arrests PNB Manager in ₹183-Crore Fake Bank Guarantee Scam
The Central Bureau of Investigation (CBI) has arrested two persons, including a senior branch manager of Punjab National Bank (PNB), in connection with a massive ₹183.21-crore fake bank guarantee scam linked to irrigation projects in Madhya Pradesh. The scam, which has been uncovered by the CBI, involves an Indore-based company using fraudulent guarantees to secure government contracts worth ₹974 crore.
According to the CBI, the scam was orchestrated by a Kolkata-based syndicate that provided fake bank guarantees to secure projects. The agency conducted raids at multiple locations in Madhya Pradesh and Gujarat, seizing documents and evidence related to the scam.
The arrested individuals are PNB’s senior branch manager, identified as S K Mishra, and another person, identified as Rakesh Kumar Jain. Jain is the director of the Indore-based company, JP Infratech, which was involved in the scam.
The CBI probe found that JP Infratech had secured multiple government contracts for irrigation projects in Madhya Pradesh, including the construction of canals, dams, and other infrastructure. To secure these contracts, the company used fraudulent bank guarantees, which were allegedly provided by the Kolkata-based syndicate.
The bank guarantees, which were valued at ₹974 crore, were used to secure the contracts, which were worth a total of ₹4,500 crore. The CBI has alleged that the syndicate provided the fake guarantees in exchange for a commission, which was paid by JP Infratech.
The CBI has also alleged that S K Mishra, the PNB branch manager, was aware of the scam and played a crucial role in facilitating it. The agency has accused him of issuing false bank guarantees and providing false information to the bank’s higher authorities.
The scam came to light when the CBI received a complaint from PNB’s internal audit department, which had detected some irregularities in the bank’s accounts. The agency launched an investigation and found that the bank had issued a large number of fake bank guarantees, which were used to secure government contracts.
The CBI has registered a case against JP Infratech, its directors, and PNB officials, including S K Mishra. The agency has also seized documents and evidence related to the scam, including bank statements, cheques, and agreements.
This is not the first instance of a bank guarantee scam in India. In recent years, there have been several cases of fake bank guarantees being used to secure government contracts. In 2018, the CBI arrested several officials of the Punjab and Sind Bank in connection with a ₹1,000-crore bank guarantee scam.
The CBI has been cracking down on bank guarantee scams in recent years, and has arrested several individuals and officials in connection with such cases. In 2020, the agency arrested several officials of the Union Bank of India in connection with a ₹500-crore bank guarantee scam.
The CBI’s latest arrest in the PNB scam is a significant development in the agency’s ongoing efforts to combat bank guarantee scams. The scam highlights the need for greater vigilance and oversight in the banking sector, and underscores the importance of strict regulations and monitoring to prevent such scams.
In conclusion, the CBI’s arrest of S K Mishra and Rakesh Kumar Jain in connection with the ₹183.21-crore fake bank guarantee scam is a significant development in the agency’s ongoing efforts to combat bank guarantee scams. The scam highlights the need for greater vigilance and oversight in the banking sector, and underscores the importance of strict regulations and monitoring to prevent such scams.
