Question : Involvement of Shell Companies in PNB Fraud

(a) whether the Government has found involvement of more than 100 shell companies involved in Punjab National Bank’s(PNB) fraud;

(b) if so, the details thereof along with the names of companies along with their turn over and connection of these companies with the PNB fraud;

(c) whether loans taken from PNB has been diverted to these shell companies and if so, the quantum of amount diverted to these shell companies; and

(d) whether the Enforcement Director (ED) has initiated investigations against these companies and if so, the details along with the present status thereof?

The Minister of State in the Ministry of Finance


(a) to (d): As per inputs received from the Directorate of Enforcement, analysis of 120 shell companies in India in the case of PNB fraud is being done. It has further stated that the matter is under investigation and it will not be in public interest to share details along with names of the companies as the same may hamper ongoing investigations.
As per the inputs of the Directorate of Enforcement, other details of the investigations initiated by the Directorate include searches conducted by it at various locations relating to accused persons/entities resulting in seizure of valuables, attachment of immovable properties, freezing of mutual funds and bank accounts, and issuance by the court of Letter of Request to 13 countries for seeking details of properties, bank accounts of companies, etc.
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