Nirav Modi's PNB fraud case: Assets worth Rs. 5100 crore seized

PNB detects Rs. 11,366cr fraud at single branch

Mumbai- Shares of the Punjab National Bank (PNB) on Thursday continued to drop for a second consecutive day - closing nearly 12 per cent lower - after a $1.8 billion fraud was detected in one of its branches in Mumbai.

Despite tight fiscal conditions, the government recently extended a $14 billion bailout to ailing state banks as part of a broader $32 billion rescue plan.

"We are known for clean banking".

After detecting the largest ever loan fraud in Indian history, the Punjab National Bank on Thursday said that it has the capacity to recover.

Modi was named in a complaint to India's Central Bureau of Investigation by Punjab National Bank, Prasad said. He said the transactions were detected in only one branch and no other branches were involved. Investigators have said the latest disclosure was related to the earlier case filed.

PNB realised the scam after Nirav Modi and Gitanjali firms sought for fresh LoUs.

These suspect bank officials issued the LoUs and informed these branches via the global cash transfer service called SWIFT (Society for Worldwide Interbank Financial Telecommunication) which connects all global banks worldwide.

The top PNB official, however, refrained from providing details as the investigations were going on.

He asked how could Modi dupe the banking system under the nose of the government, which has launched a fight against black money and benami transactions. This is especially so, because while the BJP says that the Congress should answer because it all started in 2011, the Congress says how come the BJP had no inkling of such a huge scam?

ED writes to external affairs ministry to revoke passports of billionaire jewellery designer Nirav Modi and his partner Mehul Choksi, wanted in PNB fraud case: officials.

Taking a dig at the PM, Rahul Gandhi tweeted: "Guide to Looting India by Nirav MODI. 1".

The bank alleged that Mr Modi worked with junior PNB officials to get the letters, the sources said.

The fraud, which includes money-laundering among other crimes, concerns the Firestar Diamonds group from which the CBI last week booked Modi, his wife Ami, brother Nishal Modi and their maternal uncle Mehul Choksi.

None could be reached for comment Thursday. Reuters was not immediately able to contact the two staff members.

While Shetty retired in May, 2017, PNB has, meanwhile, suspended 10 officials after its preliminary investigation.

PNB has said the transactions are "contingent" in nature, and it will decide on the liability based on the law and the genuineness of underlying transactions. On the basis of these transactions, other banks have lent money overseas to customers.

The agency issued a look out circular against all the four after registering the first FIR against them, they said.

"This stipulation was overlooked by overseas branches of Indian banks, who are also required to follow RBI guidelines", it said.



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