Bank held liable for fraud by its manager

The National Commission noted that other bank officials had blamed its own manager for embezzlement, so for the bank to accuse PHFI's employees was an afterthought

The Public Health Foundation of India (PHFI), a non-governmental organisation (NGO) registered under the Societies Registration Act, was established in 2006 with the aim of enhancing and establishing new institutes of public health.

Recognised as a scientific and industrial research organisation, it was granted exemption under the Income-Tax Act. It was also registered under the Foreign Contribution (Regulation) Act.
 

PHFI maintained a current account with Citibank for receiving foreign donations and a savings account with HDFC Bank for receiving domestic donations. In 2013-14, the NGO decided to place 80 per cent of its funds in deposits with a public-sector bank.