India's Central Bureau of Investigation (CBI) has apprehended three people for defrauding the State Bank of India (SBI) of the equivalent of around US$2 million.

The suspects allegedly provided the bank with forged documents against letters of credit (L/Cs) that the bank paid out on.

Complaint

The fraud was discovered following a complaint from a Mumbai branch of the SBI.

It reported that the suspects presented forged L/Cs apparently issued by the Punjab National Bank.

Bogus confirmation

The alleged conspirators also arranged for bogus confirmation of these L/Cs, which the SBI was convinced were genuine.

The SBI subsequently discounted forged L/Cs produced by the suspects.

Similar cases

The CBI reportedly suspects that the conspirators have perpetrated similar L/C frauds against other banks.

The three accused have been remanded in custody as investigations continue.

This article represents the views of the author and not necessarily those of the ICC or any of the other partners in DC-PRO.