Saturday, March 29, 2025
PNB Bank Fraud: CBI Arrests Two Officials Over ₹183 Crore Fake Bank Guarantee Scam
In a major banking fraud, the Central Bureau of Investigation (CBI) has arrested two officials of Punjab National Bank (PNB) for their alleged involvement in a ₹183 crore scam involving fake bank guarantees. The case revolves around Indore-based firm Tirath Constructions Ltd., which secured three irrigation projects worth ₹974 crore from Madhya Pradesh Jal Nigam Limited (MPJNL) in 2023.
To win these contracts, the company submitted eight fraudulent bank guarantees worth ₹183.21 crore, allegedly issued by PNB. Initial verifications revealed that these guarantees were fake. During the inquiry, it was discovered that individuals posing as PNB officials had sent false email confirmations to MPJNL, validating the fake guarantees. Based on these forged confirmations, the government agency proceeded to award the ₹974 crore contracts to the company.
The CBI registered three separate FIRs on May 9, 2025, following directions from the Madhya Pradesh High Court. Investigations led to the unearthing of a large-scale conspiracy involving fake bank documents and misuse of official authority.
On June 19 and 20, 2025, the CBI launched a coordinated raid across 23 locations in Delhi, West Bengal, Gujarat, Jharkhand, and Madhya Pradesh. During the operation, two individuals were arrested, including senior PNB manager Govind Chandra Hansda and Muhammad Feroze Khan, for their roles in validating and facilitating the issuance of the fake bank guarantees.
Investigations revealed that a Kolkata-based syndicate was behind the planning and distribution of forged bank guarantees. These were strategically used in high-value, secured government infrastructure projects, deceiving authorities and causing massive financial losses.
The company involved, Tirath Constructions Ltd., is now under intense scrutiny for its involvement in the fraudulent transactions. CBI officials have raided its premises in multiple states and seized documents and electronic devices as part of the ongoing investigation.
In a related development, the CBI has also registered a separate case involving Tata Consulting Engineering, Boskalis Smit India LLP, Jan De Nul Dredging Pvt Ltd, and officials from the Jawaharlal Nehru Port Trust (JNPT), Mumbai. The case, initially registered in 2022, accused former JNPT officials of conspiring with private firms to inflate project estimates, restrict competition, and provide undue benefits to select international bidders.
According to the CBI, the alleged collusion led to an illegal loss of ₹365.90 crore to the exchequer, with the total financial irregularities in the case estimated at nearly ₹800 crore.
