PNB chief Sunil Mehta admits the collusion of employees in LoUs scam

A report published in Business Standard (Probe finds staff collusion, systemic failure at PNB) had wrongly mentioned that Punjab National Bank Managing Director and CEO Sunil Mehta came to know about the letters of undertaking fraud on January 3. The correct date is January 23, 2018. The error is regretted.

Punjab National Bank’s (PNB’s) managing director and chief executive, Sunil Mehta, admitted the collusion of employees in the letters of undertaking (LoUs) scam while being questioned by the Enforcement Directorate (ED) on Thursday, according to sources.

Mehta’s statement was recorded by the probe agency under the Prevention of Money Laundering Act, in connection with the case registered against Nirav Modi and Mehul Choksi in the Rs 127-billion fraud at the government-owned lender.

Mehta was in the ED office at Ballard Pier here for nearly six hours. He was summoned soon after being questioned in the same matter by the Central Bureau of Investigation (CBI).