The High Power Group constituted by the Institute of Chartered Accountants of India ( ICAI ) has submitted its final report on the Punjab National Bank ( PNB ) scam to the Ministry of Corporate Affairs (MCA), said ICAI President CA. Naveen N. D. Gupta.
In February this year, medias reported the irregularities happened in Punjab National Bank (PNB) revealing that the Bank has detected a $1.77 billion (about Rs.11,400 crore) wrongdoing where a Jeweller Nirav Modi allegedly acquired fraudulent Letters of Undertaking (LOU) from a branch of PNB in Mumbai to secure overseas credit from other Indian lenders. These reports further reveal that CBI has since registered a case against Nirav Modi and others on the basis of the complaint filed by PNB.
Following this, the ICAI, the apex body of Chartered Accountants has constituted a High Power Group (HPG) to enquire the scam.
The President said that the Group had three meetings till now. The ICAI also made representations to other regulatory agencies, he said.
“Having collected relevant information from the officials of PNB including its Audit Committee Chairman, the Group prepared the report identifying the loopholes in the PNB systems and systemic issues in the bank. The report also suggests remedial measures to strengthen the banking system of India, which include creating awareness among banking personnel about IT and associated risks, increased involvement of independent external auditors, and increased time period for conducting statutory audit,” he said.
While addressing the members of the Institute, the ICAI President acknowledged the timely quality contribution of the Group led by my Central Council colleague CA. Shiwaji B. Zaware and our past President CA. M. M. Chitale who as special invitee has provided his relevant inputs in the report.
“With our absolute commitment to the well-being of our economy, we will continue to extend our support to the country with our professional skepticism,” he added.
