New Delhi, March 9 (IANS) The high-powered group set up by the Institute of Chartered Accountants of India (ICAI) following the Rs 12,600 crore fraud on state-run PNB, with a mandate to suggest remedial measures in the banking system, has not yet received the required documents and information from the bank, ICAI said on Friday.
The group had written to various Punjab National Bank officials, including the Chairman of its Audit Committee, to provide relevant information on the case.
“The high-powered group appointed by the ICAI is awaiting the required documents and information from the PNB officials to find out the systemic loopholes… it is worthwhile to mention that the group recommendations are dependent on the availability of documents and information,” an ICAI statement said here.
“Ordinarily, concurrent audit in a bank is carried out by an independent firm of chartered accountants. As per the current system of appointment of auditors in PNB, internal and concurrent audit was carried out by the PNB officials,” the statement said.
Though government agencies are trying to identify the culprits, it prima facie appears that the fraud was committed due to collusion of many persons inside and outside the system, the statement added.
The ICAI has also written to various investigating agencies, including the Central Bureau of Investigation, Enforcement Directorate and markets regulator Securities Exchange Board of India, requesting for details of their investigations in the matter.
Following the PNB fraud by accused diamantaire Nirav Modi and his uncle Mehul Choksi, Finance Minister Arun Jaitley said last month that the Indian industry, in collusion with chartered accountants, had for years been employing various ways like creating shell companies to “round-trip” money into the country.