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Bank officials under scanner for forex scam

In a major fraud, unidentified officials of the Punjab National Bank (PNB), in collusion with persons claiming to be businessmen here, indulged in money laundering through their shell companies, causing loss of foreign exchange of Rs. 424.58 crore to the Government of India.

The Central Bureau of Investigation has registered a case of criminal conspiracy and cheating against 19 shell companies, all based out of Chennai, and invoked provisions of the Prevention of Corruption Act, 1988, against the suspects.

The CBI case is that 19 current accounts were fraudulently opened at PNB, Mint Street branch, which is authorised to deal in foreign exchange.

Criminal conspiracy

Between January and May 2015, unidentified bank officials entered into a criminal conspiracy with the 19 accused account-holders and facilitated the shell companies to deal in foreign exchange without conducting any genuine business transaction.

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