India: Fraud-hit Punjab National Bank alleges it has been cheated again

25

 

After alleged cheat of about $2 billion made by Punjab National Bank (PNB) in 2018, and a Rs 38 billion fraud against Bhusan Power & Steel Ltd. In July 2019, the bank filed its third complaint in October with the allegation that the founder of Carnation Auto India Pvt., Jagdish Khattar cheated the bank a total of $15.4 million. The bank claimed that Khattar colluded with a former managing director of the country’s biggest carmaker, Maruti Suzuki India Ltd to cheat the banks. However, Khattar has denied the allegations saying that detailed auditing was recently completed by a leading independent auditor no wrong was found.

Khattar has said in a text message that Carnation is a bonafide business failure. The bank has since June 30, 2012, termed carnation as a bad loan, and the gross bad loan ratio increased from 16.8% in September from 16.5% in June. He also mentioned that the CBI has started an investigation and nothing has been found until now.