FM Arun Jaitley slams regulators’ failure to detect PNB fraud

New Delhi, February 24

Finance Minister Arun Jaitley on Saturday slammed regulators for failing to detect the Rs 11,400-crore fraud at Punjab National Bank for seven long years, saying unlike politicians, regulators in the Indian system are unaccountable.

Speaking on the scam for the second time this week, he said employees conniving with fraudsters is worrisome. Also, worrisome is that no red flag was raised, he said.

Regulators should have a “third eye” open to detect and check such frauds.

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Speaking at the ET Global Business Summit, he said the industry needed to get into the habit of doing ‘ethical’ business as such frauds are “scars” and push reforms and ease-of-doing business to the background.

Unethical behaviour in the lender-borrower relation had to end, he said. “If needed, laws will be tightened further to punish delinquent persons,” he added.

He also slammed the bank management for failing to do their job saying inadequate supervision and top management being unaware of what was going on in the bank was worrisome. PTI