Mishandling Rs 114-bn fraud: Letter to BS on PNB's letter to Nirav Modi

Indian jeweller Nirav Modi poses during the launch of his store in Mumbai | Photo: Reuters
This refers to PNB’s letter to Nirav Modi asking him to submit concrete plan to pay dues. This late reaction surprises me after a crackdown by the Enforcement Directorate (ED) and the income tax departments on the firm. The letter raises questions about the actual intention of the Punjab National Bank (PNB) management to recover the dues after a massive scam has already taken place. The response of the government is equally disappointing considering the mistrust among the people regarding public sector banks. Moreover, the role of the Reserve Bank of India (RBI) as a regulator is disappointing too. We are yet to know about the corrective action taken by the government or the RBI to prevent further damage to banks. What is worrying is the silence of the ruling party on the whole matter. It won’t be surprising if the results of the 2019 General Elections are affected because of the government’s inability to handle such matters. 

Partha Sarathi Mukhopadhyay


Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel