The Institute of Chartered Accountants of India (ICAI) has issued Show Cause Notices to the auditors of Punjab National Bank (PNB) and Gitanjali Gems in connection with the Rs. 11300 crore Nirav Modi scam.
The statutory body has also summoned the deputy general manager of PNB and sought related documents in the said fraud.
“The Deputy General Manager, PNB has been summoned in terms of powers as vested in Section 21C of the Chartered Accountants Act 1949 to appear and produce a copy of FIR, all related documents in the said fraud, give details of the modus operandi used in the fraud,” the ICAI said in a statement.
The ICAI has also written letters to Security and Exchange Board of India (SEBI), Central Bureau of Investigation (CBI), Enforcement Directorate (ED) and Punjab National Bank (PNB), urging them to share details of Rs. 11300 crore PNB scam.
In the letter dated February 15, the statutory body also asked the agencies and PNB to share reports or findings in respect of the said alleged fraud including the copies of the specific findings in respect of the involvement of any Chartered Accountant or firm of Chartered Accountants.
Further, the ICAI has also written to Reserve Bank of India (RBI) requesting them to provide the list of the corporate borrowers of public sector banks having an outstanding loan amount of Rs. 2000 crores and above.
The Disciplinary Directorate of ICAI has also started its investigation into the matter as per the Chartered Accountants Act, 1949 and rules framed thereunder.
ICAI has also written to the Ministry of Corporate Affairs requesting to prevail upon SEBI, CBI, ED and PNB to share their findings with ICAI to enable it to accelerate the action against any Chartered Accountants who have played any role in this fraud.
The ICAI has also set up a high power group to study the systemic issues in the PNB matter and suggest remedial measures and improvement in the banking system, and any other matter incidental thereto.