CBI arrests two in Rs 183 crore fake bank guarantee scam

The CBI has arrested two persons, including a senior branch manager of Punjab National Bank (PNB), in connection with a Rs 183.21 crore counterfeit bank guarantee scam linked to irrigation projects in Madhya Pradesh, blowing the lid of an inter-state gang that was providing fabricated bank guarantees to secure government projects, officials said on Friday.

The CBI took into custody Govind Chandra Hansda, senior manager at PNB, and Mohammed Firoz Khan from Kolkata following an extensive search operation spanning 23 locations across five states -- Delhi, West Bengal, Gujarat, Jharkhand and Madhya Pradesh.

The operation commenced on Thursday and continued into Friday, the officials said.


The agency registered a formal case in the matter based on allegations that Indore-based Teerth Gopicon Limited, which was awarded three irrigation contracts valued at Rs 974 crore in 2023, submitted fraudulent bank guarantees amounting to Rs 183.21 crore to the Madhya Pradesh Jal Nigam Limited (MPJNL).

The Madhya Pradesh High Court transferred the investigation to the Central Bureau of Investigation (CBI).

"During initial verification, MPJNL received fraudulent email responses impersonating the official domain of Punjab National Bank, falsely confirming the authenticity of the bank guarantees. Relying on these confirmations, MPJNL awarded three contracts valued at over Rs 974 crore to the firm," a CBI spokesperson said.

The CBI's inquiry revealed the involvement of a Kolkata-based syndicate that was "systematically fabricating and circulating fake bank guarantees" to obtain government contracts across several states, the agency said.