PNB Senior Branch Manager, Another Arrested in ₹183 Crore Fake Bank Guarantee Scam

The CBI has taken two individuals into custody - one being a senior branch manager of Punjab National Bank (PNB) - for their involvement in the ₹183.21 crore fake bank guarantee scam related to irrigation projects in Madhya Pradesh, exposing an inter-state syndicate that was supplying fake bank guarantees to obtain government projects, officials told reporters Friday.

The CBI took into custody Govind Chandra Hansda, senior manager at PNB, and Mohammed Firoz Khan of Kolkata following extensive searches at 23 locations across the five states of Delhi, West Bengal, Gujarat, Jharkhand and Madhya Pradesh.

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The operation began on Thursday and was still being executed when officials spoke to reporters Friday morning.

The agency registered a case based on information that Indore-based Teerth Gopi Con Limited, which was awarded three irrigation contracts worth ₹974 crore in 2023, submitted fake bank guarantees to the Madhya Pradesh Jal Nigam Limited (MPJNL) for ₹183.21 crore.

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The Madhya Pradesh High Court referred the matter to the Central Bureau of Investigation (CBI).

During the CBI's inquiry into the matter, they determined the existence of a Kolkata-based syndicate that was "continuously producing and providing fake bank guarantees in order to obtain government contracts in various states" ,the agency said.

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