Finance Ministry Urged To Stay Away from Rumors Regarding the Impact of PNB Scam

The Finance Ministry came forward and urged to stay away from rumors. The finance ministry clarified that news circulating that tax department has estimated Indian banks could take a hit of more than $3 billion pertaining to $1.8 billion Punjab National Bank (PNB) fraud, is false.

"News appearing in a certain section of media that Tax Department has estimated that Indian banks could take a hit of more than $3 billion due to alleged fraud at PNB, is false & factually incorrect," the finance ministry clarified through a tweet.

The fraud inolved issue of illegal letters of undertaking and foreign letters of credit favour Nirav Modi and Gitanjali group of companies which were not authorised by the bank. The Central Bureau of Investigation and the Enforcement Directorate the Rs 11,300 crore bank fraud.