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Post-scam, PNB transfers nearly 18,000 employees after CVC rap

WION Web Team
Delhi, IndiaUpdated: Feb 22, 2018, 01:00 PM IST
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File photo of a Punjab National Bank branch. Photograph:(Zee News Network)

More than 18 thousand employees of Punjab National Bank have been transferred in under one week as per Central Vigilance Commission's directive.

CVC's order comes in the wake of the ongoing investigations in the Rs 11,400 crore PNB scam involving Nirav Modi, Mehul Choksi among others.

CVC's order is to be complied with by all public sector banks and calls for all banking officials, employed for at least three years, to be transferred. 

The Commission on Monday issued an advisory to all the public sector banks ordering them to transfer the officers who have completed three years as on December 31, 2017. 

All clerical staff who have completed five years as on December 31, 2017 "should be transferred immediately". 

"As per Central Vigilance Commission guidelines, all officers should be rotated every 3 years. Further, as per Bank's Transfer Policy for Officers, no officer should be retained in the same post for a period in excess of 3 years and in the same station (municipal limits) for a period in excess of 5 years," said a BOI office memorandum. 

Meanwhile, the CBI has already arrested five Punjab National Bank officials including Gokulnath Shetty, a former Deputy Manager and Manoj Kharat, Single Window Operator.

Shetty is known to have issued LoUs at a frantic pace for at least 6 years before he retired in May 2017 after his long tenure at PNB'S Mumbai Brady House branch. 
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Three officers at PNB's MCB Brady House branch in Mumbai, who were arrested on Monday, were yesterday sent to police custody until March 3. They are Bechhu Tiwari, Chief Manager in charge of Forex department; Yashwant Joshi, Scale II, Manager Forex department; and Praful Sawant, Scale I Officer Export.

It must be noted that Shetty, the retired deputy manager of Punjab National Bank (PNB) arrested on Saturday, figures at the centre of the scam for defrauding the public sector bank. 

Shetty is alleged to have helped Nirav Modi and Mehul Choksi by issuing scores of letters of undertaking (LoUs). 

PNB previously shared that close 143 LoUs were issued in 63 days, starting March 1, 2017. Around 150 LoUs were issued since 2011. 

Shetty is known to have issued LoUs at a frantic pace for at least 6 years before he retired in May 2017 after his long tenure at PNB'S Mumbai Brady House branch. 

Finance Minister Arun Jaitley yesterday called out to the auditors, senior banking officials, chartered accountants and supervisory agencies "to introspect" and identify the loopholes and shortcomings in the Indian banking sector that led to such a massive fraud. 

The Finance Minister decried a "lack of ethics" among sections of Indian business on Tuesday and criticised inadequate oversight by auditors and regulators after the financial sector was rocked by the $1.8 billion fraud.

"When authority is given to the management then you are expected to utilize authority effectively and in the right manner. Therefore, the question for management here is if they were found lacking, on the face of it seems they were," Jaitley noted. 

"Also what were the auditors doing? If both internal and external auditors have looked other way and failed to detect then I think CA professionals must introspect. Supervisory agencies also must introspect what are the additional mechanisms they have to put in place," he added further.