NDB Board and EY Issued Court Notices Over Rs. 13.2 Bn Fraud Case ⚖️

The Commercial High Court of the Western Province has issued notices to National Development Bank PLC (NDB), its Board of Directors, and external auditors Ernst & Young (EY) following a derivative action filed by a shareholder. • Case Overview: The legal action (No. 21/2026/CO) stems from an alleged internal fraud resulting in a massive loss of approximately Rs. 13.2 Billion. The matter is returnable on May 26, 2026. • Primary Allegations: The petition claims the NDB Board, through its Audit and Risk Management Committees, failed to detect or address an "abnormal escalation" in the CEFTS Inward Suspense Account balance. • Banking & Governance: This case highlights significant concerns regarding oversight within the banking and financial services sector, specifically touching on risk management protocols and the accountability of external auditors. • Legal Representation: A high-profile legal battle is underway, with President’s Counsel appearing for the petitioner, the bank, the directors, and the auditors respectively. Status: Based on court disclosures and provisional legal filings. 📉