Rs 114 bn PNB scam: ICAI begins probe to know whether any CA was involved

The Institute of Chartered Accountants of India (ICAI), a state-controlled regulator for the sector, has said it is probing whether auditors played a role in perpetrating the alleged $1.77 billion fraud that Punjab National Bank unearthed last week.

The ICAI said on Thursday it has asked the Securities and Exchange Board of India, Punjab National Bank (PNB) and federal investigating agencies to share their findings of the alleged fraud, including anything related to the involvement of any chartered accountants.

The ICAI, which functions under the administrative control of India's Ministry of Corporate Affairs, said it has set up a committee to study the systemic lapses that contributed to the fraud and to suggest remedial measures and improvement.

Separately, the Economic Times newspaper reported that PNB has tapped PwC to conduct a probe into the alleged fraud that would help the bank build a case against jewellers Nirav Modi and Mehul Choksi.

PNB officials were not immediately available for comment, while PwC declined to comment on the matter.