New Delhi, February 21: In the fallout of multi-crore Punjab National Bank fraud case, 18,000 bank employees were transferred, claimed National Organisation of Bank Workers on Wednesday. The development took place after the Central Vigilance Commission (CVC) issued directives to public sector banks to transfer senior bank officers who have served at the same post for three years and clerical staff who have been at the same post for five years in the same branch.
“Punjab National Bank alone after CVC’s orders has transferred 18,000 employees in the bank. The bank officials are disturbed,” said the organisation in a statement, News18 reported.
“We are not aware of this. We do not have any information,” said official spokesperson of PNB. (Also read: Top Executives of Nirav Modi, Mehul Choksi’s Companies Sent to Police Custody Till Mar 5)
Earlier in the day, the CBI arrested a General Manager-rank officer of the PNB posted at the bank’s head office in New Delhi in connection with the case, officials said. (Also read: Employees Used Code Words, Referred to Nirav Modi as ‘Friend’)
Rajesh Jindal, who was the head of the Brady House, Mumbai, branch of the bank during 2009-11, was taken into custody on Tuesday night, they said. It is alleged that the issuance of Letters of Undertaking (LOUs) to Modi group firms without sanctioned limits started during his tenure.
Jindal is presently posted as General Manager, Credit, PNB Head Office, New Delhi.
The PNB detected a US $1.77 billion scam in which Modi acquired fraudulent letters of undertaking from one of its branches for overseas credit from other Indian lenders. The scam was started in 2011 and was detected in the third week of January this year, after which the bank officials reported it to the concerned agencies.