PNB fraud 'scar' on economy: Jaitley slams regulators, hints at new norms

At ET Global Business Summit, Arun Jaitley said that unlike politicians, regulators in the Indian system are unaccountable

Finance Minister Arun Jaitley on Saturday slammed regulators for failing to detect the Rs 114 billion (Rs 11,400 crore) fraud at Punjab National Bank for seven long years, saying unlike politicians, regulators in the Indian system are unaccountable.

Speaking on the scam for the second time this week, Jaitley said employees conniving with fraudsters is worrisome. Also worrisome is that no red flag was raised.

Jaitley said repeated occurrence of fraud causes major setbacks to efforts for improving ease of doing business, and this subsequently creates room for criticism on the economy.

The finance minister went on to say cases of willful default