PNB fraud case updates: CBI calls around ten Punjab National Bank officials for questioning in Mumbai

Have followed lawful avenues available to recover dues from Nirav Modi, says PNB

Vipul Ambani was director of 8 shell firms

Vipul Ambani, Firestar International's president (Finance), was director of eight shell companies, India Today TV reported quoting unnamed sources. It also added that Ambani is singing while in CBI custody. 

A special CBI court in Mumbai on Wednesday sent to police custody, till 5 March, five senior executives of the Nirav Modi and Mehul Choksi Group of Companies, including Vipul Ambani, who were arrested on Tuesday in conection with the Rs 11,400 crore Punjab National Bank fraud.

How Nirav Modi's employees colluded with bank officials to create fake LoUs

 For hours on Wednesday, sleuths from the Central Bureau of Investigation (CBI) were frustrated as they were trying to find out how fake Letter of Undertakings (LoUs) and Foreign Letter of Credits (FLCs) running into thousands of crores was drafted and subsequently sanctioned by the Punjab National Bank (PNB) officials. The two executives of Nirav Modi admitted to preparing and signing the applications made to PNB but they refused to disclose details how and where such applications were finalised.

In its note, the agency has made a startling revelation that even top officials of the PNB beginning with the zonal to head office was aware of the business dealing with Nirav Modi's companies and the assertion that top officials were ignorant has been neutralised by the probe agency.

ED seizes Nirav Modi's assets worth 94 crore

The ED on Thursday said it has frozen mutual funds and shares worth Rs 94.52 crore of the Nirav Modi and Mehul Choksi groups in connection with a money laundering probe against them in the Rs 11,400-crore alleged fraud at the Punjab National Bank (PNB).

Nirav Modi scams shows its time Parliament reexamined banking laws

Various process failures of public sector banks in India are not new. What is new in the PNB fraud is that, for the first time, questions are being raised about the supervisory capacity and systems in Reserve Bank of India (RBI). The government has written to the RBI asking for why the scam was not detected in its systems. Concerned citizens have asked for similar information in the past and disclosures by RBI have not been adequate.

Laws which govern the functioning of RBI need to be changed to bring about transparency and accountability. This has to then be supported by scrutiny into the functioning of the institution. A tragedy is a terrible thing to waste. The legislature should take a relook at the legislative framework of transparency, accountability and governance of RBI. The Draft Indian Financial Code addresses many of these concerns and there is need to incorporate its principles in primary legislation.

Visuals of Nirav Modi's cars seized by ED

ED freezes Nirav Modi's mutual funds and shares worth Rs 7.8 crore

ED seizes nine luxury cars of Nirav Modi including Rolls Royce, Mercedes

Meanwhile, Bipasha Basu, Kangana Ranaut accuse Gitanjali Gems of non-payment of dues, breach of contract

Visuals of CBI raiding Nirav Modi's Alibaug farmhouse earlier

Nirav Modi holds two passports: Indian and Belgian

According to CNN-News18, investigative agencies could not trace absconding billionnaire Nirav Modi as he used his Belgian passport to fly out of Davos.

Nirav Modi holed up in Antwerp, Belgium

According to CNN-News18, jeweller Nirav Modi is holed up at friend Rashmi Mehta's house 27, Berkenlaan, in Antwerp, Belgium, reported CNN-News18.  

Mehul Choksi's Gitanjali Gems plunges over 56% in six days

Within a week of surfacing of Rs 11,400 Punjab National Bank (PNB) fraud, Gitanjali Gems' stock has nosedived over 56 percent.

It fell for sixth consecutive session on Wednesday. The stocks of the jewellery company plunged by 9.85 percent to close at the lower circuit of Rs 27.45 per share on Wednesday. Market capitalisation of the company stood at Rs 325.60 crore, down from Rs 695.08 crore.

- IANS

RECAP: ED raids shell firms; I-T attaches Rs 145 cr assets of Nirav Modi group

The Enforcement Directorate (ED) on Wednesday continued raids for the seventh day as it visited 17 locations across the country, including four shell companies in Mumbai, even as the I-T department attached assets worth Rs 145 crore in the alleged Rs 11,400-crore Punjab National Bank (PNB) fraud.

While the ED seized assets worth Rs 10 crore on Wenesday, the tax department said it has attached a total of 141 bank accounts and fixed deposits worth Rs 145.74 crore of the Nirav Modi group. The department said it has attached these assets to realise outstanding tax demands.

With Wednesday's seizure, the total value of gems and gold jewellery seized by the ED stands at Rs 5,736 crore. The agency has said it is carrying out an "independent valuation" of these seized assets.

-PTI

PNB, Nirav Modi, aren’t the first; India’s PSBs have long been beaten by frauds

The instances of fraudulent transactions and loan scams involving bank officials continued. This included both and big and small frauds — Citibank fraud, Bank of Baroda forex scam, Syndicate Bank fraud and several other lesser-known scams. In most instances, the victims were public sector banks and culprits their own officials. Most cash-for-loan scams happened through middlemen.

Looking at PNB-like frauds, if someone thinks that there are no checks in place in the system, they are wrong. "There are checks but no one really cares," said another banker who too requested anonymity. He takes the example of the LoU (Letters of Undertakings) fraud in PNB. If a branch-level official does a transaction of this manner for a period of seven years, it can get caught at different levels if any of the checks in place triggered this illegal activity.

High net-worth clients of Nirav Modi's get I-T notices

I-T notice served to Congress leader Singhvi for making payments to Nirav Modi

The I-T department issued notices to several clients, including Congress leader Singhvi, of Nirav Modi for making large payments to him in cash, reports CNN-News18. 

PNB adopts strict SWIFT controls after Rs 11,400 crore fraud case

 India’s state-run Punjab National Bank has stepped up its controls on the use of global payments network SWIFT following an alleged $1.77 billion fraud, according to memos issued this month and seen by Reuters.

The new measures mean only PNB officers will be able to initiate messages on SWIFT, taking away the authority of clerks to do so. Several new limits have been placed on the amount that officers can generate depending on their seniority in the bank hierarchy.

The note sent by the bank’s head office in New Delhi to all regional offices on 17 February also stated any SWIFT message will have to be created, verified and authorised by three different officers, starting Thursday. Previously only two individuals were needed for the process.

- Reuters

ED identifies 50 Bihar jewellers with Gitanjali stocks

The Enforcement Directorate on Wednesday said it has identified 50 jewellers across Bihar with suspected stocks of the Geetanjali Group, which is under the scanner in the aftermath of the Punjab National Bank scam.

The jewellers, spread across towns like Patna, Bhagalpur, Muzaffarpur and Gaya, have been asked to surrender their stocks at the agency's zonal office in Patna, failing which they may have to face legal action, an ED official said.

The ED, in the past few days, has raided showrooms of the Gitanjali Group at a number of locations in Patna, Muzaffarpur and Kishanganj and seized valuables worth crores of rupees.

-PTI

Nirav Modi staying at friend's house in Antwerp, Belgium, reports CNN-News18

Nirav Modi's aide Vipul Ambani was aware of fraudulent LoUs: CBI

Vipul Ambani, an arrested aide of fugitive billionaire Nirav Modi, knew about the fraudulent and illegal Letters of Undertaking (LoUs) issued by the Punjab National Bank in the Rs 11,400 crore fraud, CBI officials said on Wednesday.

Ambani was arrested on Tuesday and is being continuously grilled by the Central Bureau of Investigation (CBI) officials in Mumbai.

"Ambani was fully aware of the fraudulent and illegal LoUs issued by Shetty who was a deputy manager at PNB's Brady House branch in Mumbai. (This was being done) in conspiracy and (under the) guidance of Nirav Modi and other employees of his firm," a senior CBI official told IANS in New Delhi.

The CBI official said the agency during its probe found that Ambani not only visited and met PNB's officials at the Brady House branch but also met other bank officials in Mumbai and New Delhi.

The official also said that they have seized documents during searches at the office of Firestar at Peninsula Business Park in Mumbai's Lower Parel that "prove" that Ambani knew what was being done.

IANS

CBI seals Nirav Modi's farmhouse in Mumbai's Alibaug

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The CBI on Wednesday sealed a luxury property of billionaire Nirav Modi in Alibaug area near Mumbai, officials said.

The 1.5 acre farm house in the uber rich neighbourhood at a stone's throw distance from Arabian sea was purchased by Modi in 2004 for Rs 32 crore for hosting special parties for his clientele to show case his precious jewellery collection, they said. 

Court remands Vipul Ambani. and five others arrested. to CBI custody till 5 March

A special court in Mumbai on Wednesday remanded Vipul Ambani, the president (finance) of Nirav Modi's Fire Star Diamond, and five others in CBI custody till 5 March in connection with the Rs 11,400 crore alleged fraud in Punjab National Bank (PNB).

The six were arrested on Tuesday in connection with two FIRs registered by the CBI involving Modi and his uncle Mehul Choksi, the owner of Gitanjali Gems.

Updates for 22 February, 2018 begin here

Bank workers' body claims close to 18,000 PNB employees transferred following alleged scam

Have strong sovereign backing, adequate capital, PNB assures customers

Scam-hit PNB has assured investors and customers that it has a strong sovereign backing and adequate capital to deal with the situation in the aftermath of the Rs 11,400 crore fraud. "We assure you that in your bank, it is business as usual," state-owned Punjab National Bank said in a tweet.

The country's second largest lender has also dismissed media reports that it has imposed restrictions on withdrawals.

"Be rest assured we have a strong sovereign backing. The core strengths of the bank is the brand image with rich 123 years of existence, strong CASA base, stable asset quality and increased pace of digitisation," PNB said.

Earlier in February, the bank said that it has been hit by a fraud amounting to about $1.77 billion. The alleged fraud was affected by fraudulent Letter of Undertakings (LOUs) issued to firms of diamantaire Nirav Modi and Mehul Choksi.

"We have adequate capital coupled with strong non core asset base," said the PNB tweet as multi-agency probe widened into the fraud. PNB also said that it has the capacity and capability to "handle the situation" and protect the interest of the institution.

PTI

CBI calls around ten PNB officials for questioning in Mumbai

Rahul targets Narendra Modi for silence on PNB scam

Congress president Rahul Gandhi attacked Prime Minister Narendra Modi over his silence on the PNB bank fraud and the Rafale deal, saying sarcastically that he looked forward to his "sermon" on the issues in his "Mann ki Baat" programme.

Rahul also labelled the prime minister's programme aired on All India Radio a monologue and said the country wants to hear him speak on billionaire diamond jeweller Nirav Modi and the Rafale "scam".

In response to the prime minister's suggestion for ideas for his 28 January 'Mann ki Baat' programme, Rahul had urged him to tell the country about India's plans on stopping rapes, getting the Chinese out of Doklam and jobs for the youth.

PTI

Nirav Modi's return depends on ED charge sheet, CNN-News18 quotes diamantaire's lawyer as saying. 

On what basis is Nirav Modi branded a fugitive, lawyer asks media

RBI sets up committee to preempt and prevent scams in future

The Reserve Bank of India (RBI), on quick action mode, has rolled out some strict measures in the aftermath of the Rs 11,400 crore Punjab National Bank scam. An expert committee will be formed, while the central bank has also issued guidelines and safeguards that banks are meant to implement.

Investigation underway, attorney general tells SC

Attorney General KK Venugopal has told the Supreme Court that the investigation is ongoing and an FIR has been registered. The court has fixed the next date of hearing for 16 March.

— PTI

'Publicity Interest Litigation'

Refusing to entertain a PIL filed by a lawyer seeking a probe by the apex court into the Punjab National Bank fraud case, the Supreme Court said it was "becoming fashionable" to run to the courts and it was only right to let the government complete its investigation. It also called such PILs "publicity interest litigations".

Nirav Modi not the first the first; India’s banks have long been beaten by frauds

Looking at PNB-like frauds, if someone thinks that there are no checks in place in the system, they are wrong. "There are checks but no one really cares," said a banker. "Besides daily checks, the bank also does concurrent audits, which happen concurrently throughout the year. Such fraud should have reflected there," the official said.

This apart, there are RBI and government representatives on the boards of large banks who are supposed to keep an eye on all transactions and ensure that nothing goes amiss. "But it appears that all of them were sleeping when a fraud was developing," the banker added.

SC to let govt continue investigation into PNB scam

Siddaramaiah takes further potshots at BJP

Nirav Modi is abroad on 'business purposes', says lawyer

'Payoffs, late night parties'; corruption has seeped into very core of India's public sector banks

Late night parties at plush farmhouses and hefty kickbacks to top bank officials are two 'compulsory' requirements for scamsters to access the loans from public sector banks that they fully know would turn into Non-Performing Assets (NPAs).

CBI arrests PNB's general manager-rank officer from New Delhi branch

The CBI has arrested a general manager-rank officer of the Punjab National Bank posted at the bank's head office in New Delhi connection with the alleged Rs 11,400 crore fraud involving billionaire jewellers Nirav Modi and his uncle Mehul Choksi, officials said. The arrested accused, identified as Rajesh Jindal, was the head of the bank's Brady House branch in Mumbai during 2009-11.

— PTI

Supreme Court to hear plea seeking Nirav Modi's deportation

CBI makes first arrest in the Rs 11,300 crore Punjab National Bank scam

On Tuesday night, the CBI made its first high-profile arrest in the Rs 11,400 crore alleged Punjab National Bank (PNB) scam on Tuesday, taking into custody Vipul Ambani, the head of finance of Nirav Modi's Firestar Diamond.

— PTI

It is incumbent upon the state to chase those who cheat the banking system: Arun Jaitley

I would like to request Modiji to bring back the other Modiji (Nirav Modi): Rahul Gandhi

Centre has taken case seriously and already seized more than 5,000 crore assets: Amit Shah

Gitanjali to shut down completely as owner Mehul Choksi goes absconding

As the owner of Gitanjali, Mehul Choksi continues to abscond, the employees have been given relieving letters.

Meanwhile, Mumbai court sends Bechu Tiwari, Yashwant Joshi and Praful Sawant to police custody

CBI finds news farmhouse of Nirav Modi near Alibaug

Punjab National Bank loses Rs 11,000 crore in mcap in 5 days

Punjab National Bank's market valuation has slumped by Rs 10,939 crore in five days, which is nearly equal to the massive Rs 11,384-crore fraud at the company, even as the stock made a marginal recovery today The stock had dropped in the previous four trading sessions. In the past one week, the stock has lost nearly 28 percent PNB's  market valuation fell by Rs 10,938.78 crore to Rs  28,270.22 crore on Tuesday from Rs 39,209 crore on 12 February. The company's scrip meanwhile staged a marginal recovery today ending 0.13 per cent higher at Rs 116.55 on BSE.  - PTI

Gitanjali jewellers shut shop after receiving relieving letters

Gitanjali employees were handed over relieving letters and were refused gratuity. The employees soon took to the roads and decided to protest demanding February salary. 

Nirav Modi's palatial Alibaug bungalow being searched

PNB scam was a sin committed during UPA tenure: Yogi Adityanath

Abhishek Manu Singhvi slams media, says harassment, innuendo, insinuation must have its limits

Congress defends Manu Singhvi, says question is whether Indian govt wants to remain 'helpless' in case or not

Congress leader Manish Tewari defends Manu Singhvi, says the question is whether the Centre wants to remain 'helpless' in the PNB scam or not. - CNN-News 18

Scam raises questions on credibility of entire banking sector: Manish Tewari 

Meanwhile, Congress leader spokesperson Manish Tewari said question does not stop at Nirav Modi and Vikram Kothari but extends to the credibility of entire banking sector. 

Singhvi asks why no one else received a notice in this regard first

Abhishek Manu Singhvi slams news channel for repeating allegations

Congress and CPM demand discussion on PNB scam

The Opposition Congress and CPM on Tuesday demanded a discussion on the Punjab National Bank fraud case in the ongoing session of the state Assembly. The ruling Trinamool Congress is yet to take a call on the issue and mocked Congress and CPM for staging walkout from the house during most of the discussions.

"We want a discussion on the PNB fraud case in the ongoing session of the state assembly. We hope the ruling party won't have any objection. We will submit it very soon," Leader of Opposition and Congress MLA Abdul Mannan said.- PTI

Nirav Modi sold dreams to many people including the government: Rahul Gandhi

Nirav Modi accuses PNB of destroying his brand

In a letter written to Punjab National Bank, Nirav Modi has accused the bank of destroying his brand and says the move has jeopardised his ability to repay banks, media reports said.

Moody's, Fitch warn PNB of downgrades

International rating agencies Moody's Investor Service and Fitch Ratings today warned the scam-hit Punjab National Bank (PNB) of rating downgrades, citing likely net worth erosion and widening losses at the second largest state-run lender. The Rs 11,400-crore fraud—the biggest in the country's banking history—has raised questions on both internal and external risk controls at PNB as well as the quality of management supervision at the regulatory level considering that the fraud went undetected for several years, the agencies said.- PTI

I-T sends notice to Abhishek Manu Singhvi's wife Anita for jewellery purchase from Nirav Modi

Corruption case dug up in 76 banks

"No cash transaction with Nirav Modi," says Manu Singhvi

Congress leader Abhishek Manu Singhvi denies charges, says,"We must have purchased jewellery from various stores. But, there is no cash transaction with Nirav Modi."

Bankers probed for fraud between 2015 and 2017

It is inappropriate to assume that Congress is involved in this matter: NCP leader Majeed Memon

I-T sources crack down on Congress leader Abhishek Manu Singhvi

I-T department serves notice to Congress leader Abhishek Manu Singhvi for unaccounted payment to the tune of Rs 4.5 crore out of which only Rs 1.5 crores was paid in cheque.The notice was sent after transactions showed Singhvi had bought diamonds worth Rs 6 crores.- CNN-News 18

Nirav Modi's lawyer claims agencies will not be able prove charges

Enforcement Directorate (ED) raids Gitanjali Jewels in Jabalpur, Madhya Pradesh

Chawl residents and people living in one-room tenements listed as directors of Nakshatra Brand Limited and Gili India Limited

Nirav Modi episode shows how corporate frauds are eroding credibility of India's banking system

Corporate frauds like the Nirav Modi scam, phenomenal rise in non-performing assets (NPAs), new provisions like bail-in under Financial Resolution and Deposit Insurance (FRDI) regime are a multi-pronged conspiracy aimed at weakening India's predominantly public-owned banking system. This would result in corporate appropriation of public savings besides diverting household savings into speculative investment to fuel market bubbles. Thus, the Nirav Modi scam is not an aberration.

Cartoon by Manjul 

CVC demands report on PNB scam from Punjab National Bank and finance ministry in 10 days 

The Central Vigilance Commission (CVC) has asked Punjab National Bank and finance ministry officials to submit a report on how the scam took place despite monetary regulations to avoid the same being in place. ANI reports that the commission has given the bank 10 days to formulate the report.

ED Director to take over probe into PNB scam

ED begins attachment of various properties of Nirav Modi and Mehul Choksi in Mumbai, reports News18. The total assets seized as of now stands at Rs 5716 crores.

ED probes 250 shell companies linked to Nirav Modi, Mehul Choksi that may have laundered money

Nirav Modi's fraud case not a first for Punjab National Bank, it has been a sitting duck for decades

Much, much before our Mehul (Choksi) Bhai and his nephew Nirav Modi unburdened the bank of nearly Rs 11,000 crore and counting, the PNB had found itself in a similar soup because of another high-flying businessman, the suave Rajendra Sethia.

The bank's Sethia to Modi-Choksi story spans almost 30 years. But, nothing about the PNB seems to have changed. It is still a ripe, rotten mango waiting to be plucked by those with smart brains and right connections.

PNB's in-house probe gives clean chit to auditors, blames foreign branches of Indian banks

Even before the investigating agencies begin their probe, an in-house inquiry by state-owned Punjab National Bank (PNB), which was allegedly defrauded of Rs 11,360 crore by diamond merchant Nirav Modi and his maternal uncle Mehul Choksi, has given a clean chit to its auditors and blamed foreign branches of Indian banks.

The PNB has also contradicted itself by admitting that there are several loopholes in Letters of Undertaking (LoUs), which could have been easily detected.

In its latest complaint to the Central Bureau of Investigation (CBI), an exclusive copy of which is with Firstpost, the PNB gave vague responses to the investigators' questions and directed them to the in-house probe.

PNB scam is just tip of iceberg

According to CNN-News18, the Rs.11,000 crore scam is just the tip of the iceberg. One-hundred fifty LoUs (Letters of Understanding) and 233 foreign letters of credit were issued to Nirav Modi, the report said. 

More skeletons likely to tumble out...

According to a News18 investigation, the FIR filed by the CBI stated that eight LoUs were issued. However, the investigation claims that 150 LoUs were issued to Nirav Modi, the alleged mastermind of the 11,000 crore scam. 

CBI quizzes chief financial officer of Nirav Modi's company

The CBI is questioning Vipul Ambani, the Chief Financial Officer of diamantaire Nirav Modi's Fire Star diamond company, officials said on Monday. They said Vipul Ambani was holding the position for last three to four years. He is understood to be a relative of late Dhirubhai Ambani, reported PTI.

Government writes to RBI over PNB lapses

According to News18, the government has written to RBI asking if lapses have been noticed on five counts. The report added that RBI's response is expected after due diligence with banks. 

Nirav Modi in Dubai?

Investigation agencies believe billionaire businessman may be in Dubai. According to India Today, the CBI may have got a tip-off from undisclosed sources and is currently seeking Interpol's help to nab Modi. 

Shiv Sena calls Nirav Modi a BJP 'partner', claims diamond czar helped collect funds for party

Advocate Vijay Aggarwal to defend Nirav Modi , previously represented 2G scam accused

FICCI recommends privatisation of public sector banks

FICCI, the representative body of Indian private companies has pushed for privatisation of public sector banks. Claiming that the recapitalisation of banks have had little impact on the health of public sector banking, FICCI believed that financial irregularities have been affecting India's image as a business friendly nation. 

CBI continues to probe PNB employees of Brady Road branch 

According to News18, at least six to seven employees are being questioned inside the branch by the Central Bureau of Investigation. According to the report, the CBI is investigating whether there are more people involved in the scam. 

CVC directs vigilance officer of PNB to again enquire over lapses

News18 reported that CVC was not satisfied with the information given by top brass of the Punjab National Bank. According to the report, it wants vigilance officer of PNB to step in and report back on lapses. The CVC will also issue fresh guidelines to all banks. 

WATCH: Srivastava says he has been writing to authorities since 2015 but with no success

WATCH: Srivastava says he was threatened by Choksi

'They have cheated Indian public,' says Santosh Srivastava

Ex-aide of Mehul Choksi slams Gitanjali, calls its stock 'overvalued'

Speaking to CNN-News18,  former executive of Gitanjali Gems, Santosh Srivastava slammed Mehul Choksi, who is now at the eye of the storm for siphoning off Rs 11,400 crore from Punjab National Bank. "Choksi created an unprofessional institution. It was an one man show at Gitanjali. He threatened me when I decided to tell the truth," Srivastava said. 

Updates for 19 February begins

Enforcement Directorate conducted further searches at 21 locations across India in Nirav Modi case and seized diamonds, gold, precious stones, metals and jewellery worth Rs 25 crore, reports ANI. Total seizure now stands at Rs 5,674 crore, ED added. 

Rahul Gandhi's scathing attack against Prime Minister Narendra Modi 

"Nirav Modi took away Rs 22,000 crores. The prime minister can teach kids how to take an exam for one and a half hours but he can't tell the country who is responsible for the money Nirav Modi took away. The prime minister must answer what is he going to do about it," Congress president Rahul Gandhi said after the Congress steering committee on Saturday.  Rahul also rejected the BJP's charge that he has personal ties with Nirav Modi, saying they are trying to divert the issue.

Special CBI court sends all three PNB officials in police custody till 3 March, reports ANI.

ANI reports that the three accused are Gokulnath Shetty, then deputy manager of Punjab National Bank (PNB) and Manoj Kharat, SWO (single window operator) of PNB and Hemant Bhat, Authorised Signatory of the Nirav Modi Group of Firms.

"When will the finance minister and the prime minister come clean on the Nirav Modi scam?" Congress asks on Twitter

"NDA's cheap sense of politics has reached ludicrous and ridiculous proportions," Abhishek Singhvi says on Twitter in retaliation to Nirmala Sitharaman's charges against him 

Three Punjab National Bank officials arrested by CBI on Saturday produced before Special CBI court, reports ANI

Neither my wife, sons nor me have anything whatsoever to do with Gitanjali or Nirav Modi companies, says Abhishek Manu Singhvi 

"Nirmala Sitharaman and her colleagues are liable to civil and criminal defamation for making ignorant and patently false allegations," Congress leader Abhishek Manu Singhvi said according to ANI. "Neither my wife, sons nor me have anything whatsoever to do with Gitanjali or Nirav Modi's companies. The company was a tenant of a Kamala Mills properties owned by Adwait Holdings in which my wife and sons are directors," he added. 

"Adwait Holding owns a commercial property at Lower Parel, as it does elsewhere, which was rented by Firestone many years ago. Neither Adwait nor my family has any interest with Nirav Modi or Firestone. Firestone vacated Parel's Kamala Mills premises in December 2017," Singhvi further explained. 

Govt leaving no stone unturned to nab Nirav Modi: Sitharaman 

Nirmala Sitharaman said that the entire might of the government has been invoked to nab Nirav Modi. She said that Centre put all concerned authorities in action immediately after the PNB fraud came to light. 

In 2013, Rahul Gandhi attended promotional event of Nirav Modi's franchise: BJP

​

Congress misleading people over the issue, says BJP

BJP leader and defence minister Nirmala Sitharaman on Saturday, in a press conference, said that Congress' allegations against the Centre are misleading people. She said that repeating lies is a strategy being adopted by Congress. 

"Original sin in Nirav Modi fraud was committed in 2011. The Letters of Understand (LoU) hold good only for 90 days. But the accused PNB officer kept rolling the LoUs till he got retired. He didn't put details in banking system which lead to no one detecting the scam," Sitharaman said. 

Most of Nirav's Modi's LoU's were issued in 2017-18: CBI

ED raids Gitanjali stores in West Bengal and Rajasthan

The Enforcement Directorate (ED) on Saturday conducted raids at Nirav Modi's franchise Gitanjali Gems Store in Durgapur, West Bengal. The ED also seized diamond and jewellery worth Rs 3 crore in raids at Gitanjali and Nakshatra Jewellers in Jaipur. 

BJP brought India's economy to its knees, says Kapil Sibal 

Sibal said that with ill-intentions, the BJP brought India's economy to its knees. "I challenge BJP to come and talk about UPA's governance and their governance," said the congress leader. 

He alleged that in 2015 there was a complaint file regarding the PNB issue but PMO replied that this had been 'dealt with'. "How was it dealt it? This proves that they were aware of all this," asked Sibal 

PM should disclose who travells with him on official tours: Sibal

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Kapil Sibal takes a dig at Narendra Modi over PNB fraud 

Finance ministry knew that the country was being looted, says Kapil Sibal

Sibal said that banks gave loan even though there was no collateral. He asked the government why action was not being taken against loan defaulters. "If India's economic situations worsens, investors will lose trust. Nivar Modi scam can be called ease of doing business. We don't want this kind of ease of doing business," said the congress leader. 

Chaukidar of the country is sleeping: Kapil Sibal 

Congress leader Kapil Sibal, while taking dig at Prime Minister Narendrs Modi, said that the Chaukidar of the coutry is busy these days. "The situation which has arose today is because Chaukidar is sleeping. How can one say that the prime minister, finance minister did not know about the PNB fraud."

CBI arrests Gokulnath Shetty, former deputy manager of PNB

​CBI on Saturday arrested Gokulnath Shetty former deputy manager of Punjab National Bank, Manoj Kharat, single window operator at PNB and Hemant Bhat, Authorised Signatory of the Nirav Modi Group of Firms, said media reports. 

Nirav Modi might be holding dual citizenship

I-T attaches 29 properties, 105 bank accounts of Nirav Modi

The Income Tax Department on Saturday provisionally attached 29 properties and 105 bank accounts of the diamond merchant Nirav Modi, his family and firms as part of its tax evasion probe

CVC summons RBI, finance ministry and PNB bank officials

The Central Vigilance Commission (CVC) has summoned senior officials from the Reserve Bank of India, the finance ministry and the Chief Vigilance Officer of Punjab National Bank (PNB), next week to assess how the fraud reported slipped past all the checks and balances in the system, The Hindu reported. 

Gitanjali Gems stocks plunge 20%, PNB slips 2%

Following the $1.8 billion fraud detected by the Punjab National Bank (PNB), stocks of jewellery company Gitanjali Gems on Friday plunged almost 20 percent — hitting its lower circuit — while PNB's shares closed over 2 percent lower.

Stocks of Gitanjali Gems, the luxury jewellery brand promoted by the main accused Nirav Modi's maternal uncle and business partner Mehul Choksi, plunged 19.94 percent to close at Rs 37.55 per share.

"Price-wise, the way the stock of Gitanjali Gems has slipped and the kind of circuit that we are seeing, probably the sequence may continue for some days. From a support perspective, Rs 29-30 is a support," Sacchitanand Uttekar, Assistant Vice-President at Research for Tradebulls, said.

"But with developments in the company going off-track, how much will it hold is something that time will decide," he added.

IANS

We will get back to normal within six months: PNB chief

Despite the huge blow of $1.8 billion fraud, India's second largest public sector bank is hopeful of coming out of the problem in the next six months, according to its top official.

"We will get back to normalcy within six months. Bank has the size and capacity to come out of the problem," Sunil Mehta, Managing Director and Chief Executive Officer of Punjab National Bank. told a investors' conference call on Friday.

He said the bank was going through some problems but "we will fix it", adding that the bank "will not spare anyone" involved in the crime.

During the investors' conference call, the bank chief reiterated that the incident was a standalone case. "We are looking at gaps in our existing controls, systems and trying to control them," he added.

IANS

MEA says Nirav Modi cannot move out of the country after suspension of passport 

MEA clarifies Nirav Modi was at Davos in his personal capacity

At a press briefing, MEA spokesperson Raveesh Kumar said that Nirav Modi and other Indian CEOs were at Davos on their own. He further added that the Narendra Modi's impromptu meeting was not in any way an endorsement of Nirav Modi or his business.

CBI carries out searches in 26 places across India after naming 3 companies in fresh FIR registered in PNB fraud case, reports PTI

Revenue secretary says Dinesh Dubey resigned in 2013 saying he was 'unhappy over something'

Ex-CBI director says not necessary Nirav Modi will be extradited because of Interpol notice

Prakash Javadekar says Nirav Modi fraud not a govt scam

Asserting that the Centre is "making sure" that the money will be recovered, Union minister Prakash Javadekar said, "What UPA did was destroy the banking system. Coal scam, 2G, CWG are all government scams and they are not comparable with Nirav Modi scam(which allegedly began at a bank)."

Nirav Modi scam has come to light because of our efforts: Centre

"All the wrong loans were sanctioned under the UPA government and it was passed on to us. We have not stopped any of the investigating agencies. This is one of the scams under the UPA. There is a difference between government scams and bank scams. They even have a party scam. It has come to light because of our alertness and our efforts to make banking systems transparent," Union minister Prakash Javadekar said at a press conference.

BJP counters Congress attack

"Rahul Gandhi was at Nirav Modi's 2013 exhibition and immediately Allahabad Bank gets notified about the fraud. Dubey wrote to all the important ministries in the Centre at that time. Finance secretary instead suggested Dubey to resign. This is the story. We want to ask, who pressurised the finance secretary? This is a UPA 'ghotala'," Prakash Javadekar said at a press briefing.

Highlights of Congress briefing on Nirav Modi scam

Bank Loot has peaked to Rs 21,306 cr

Everyone in Modi government was aware of the fraud being committed

Prime minister knows Mehul Choksi

Agencies looked on as Nirav Modi 'fled'

How did the fraud detecting mechanism fail?

Banks ignored red flags

Sidharth Malhotra denies reports on cancelling contract with Nirav Modi, says it ended a year ago

Whistleblower Dinesh Dubey says he had sent dissent note against Gitanjali Gems to Centre, RBI in 2013 

Ex-CBI director says it could take months or even years to track Nirav Modi's overseas money trail

Congress says Narendra Modi knows Mehul Choksi

"From 7 May 2015 to May 2017, everybody knew about the fraud. They were even informed that this fraudster will flee. It is likely that Prime Minister Narendra Modi knows Mehul Choksi," Randeep Surjewala said on Thursday.

The Congress then played a video of one of Narendra Modi's 2015 address as evidence that he is familiar with Choksi. "Why is the Centre denying it?" asked Surjewala.

Congress says total scam worth Rs 21,306 crore

At a press conference, Congress spokesperson Randeep Surjewala said that in the past 24 hours, the biggest fraud in India has been exposed. He added that the scam is worth Rs 21,306 crore

"UDAAN word is Narendra Modi's buzzword, Any scamster can flee and fly," said Surjewala said.

Congress begins press briefing on Nirav Modi scam

Nirav Modi postponed plans to flee country due to demonetisation, CNN-News18 quotes CBI sources as saying

Unpublished data shows India's fraud problems extend far beyond PNB​

Investors may have been shocked when one of India’s biggest banks disclosed a $1.77 billion fraud by a billionaire jeweller, but the central bank has recorded data that shows the problem runs far deeper and wider.

Reserve Bank of India (RBI) data, obtained through an RTI request, shows state-run banks have reported 8,670 “loan fraud” cases totalling Rs 612.6 billion over the last five financial years up to March 31, 2017.

The figures expose the magnitude of the problem in a banking sector already under pressure after years of poor lending practices. Bad loans surged to a record peak of nearly $149 billion in 2017.

Bank loan frauds have steadily increased as well, reaching Rs 176.34 billion in the latest financial year from Rs 63.57 billion in 2012-13, according to the data, which doesn’t include the PNB case.

Reuters

Rahul Gandhi attended Nirav Modi's event in same month Dinesh Dubey was forced to resign, alleges rebel Congress leader Shehzad Poonawalla

Rahul Gandhi takes a dig at Narendra Modi over Nirav Modi's 'escape'

PNB should reveal due diligence on Rs.1,700 cr loan to Nirav Modi: AIBEA

Only the naive would believe that just two officials were involved in the $1.8 billion fraud in Punjab National Bank (PNB) and that the whole bank was in the dark for the past seven years, said a top leader of a major bank union.

He also asked the PNB management to reveal what kind of due diligence was done on diamond trader Nirav Modi and his companies before extending a loan of Rs 1,700 crore.

"The PNB management is blaming other banks for not sharing details of their due diligence done on Modi's business. The $1.8 billion fraud is done on non-fund based transaction. The PNB management has to clarify what kind of due diligence it had done while lending to Modi's firms a sum of Rs 1,700 crore," CH Venkatachalam, General Secretary at All India Bank Employees' Association (AIBEA) said.

IANS

Validity of passports belonging to Nirav Modi, Mehul Choksi suspended, both given a week's time to respond

CBI has registered an FIR against Gitanjali Group of companies of Mehul Choksi (Nirav Modi's uncle and alleged partner) based on complaint of PNB

Who assumes the liability?

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, reported Reuters.

Banking sources have said several other banks who have extended loans based on the PNB LoUs that were later found to be fraudulent are at risk of losing money. Some of the banks say PNB is liable to pay since it issued the LoUs, although PNB, in a 12 February “caution notice” addressed to chief executives of 30 banks, including two foreign banks, said the other banks also have a share in the blame as they “overlooked” certain Indian central bank rules.

It also said none of the overseas branches of India-based banks had shared with PNB any documents or information at the time of extending buyers’ credit to the companies. PNB said Nirav Modi had written to the bank but had yet to offer any formal proposal for a repayment.

Banks will have to be equipped with better risk management as NPAs pile-up

The Reserve Bank of India (RBI) must feel like Cassandra gifted with the ability to tell the future, but cursed that her prophecies would never be believed (she is a character in the Greek myth The Iliad, and sister of one of the main protagonists, Hector, Prince of Troy). The latest example is the Rs 11,000 crore plus fraud perpetrated in a Mumbai branch of Punjab National Bank.

Sources in the Finance Ministry are saying that the recapitalisation of the Punjab National Bank will not be impacted by the fraud case

Priyanka Chopra denies claims of suing Nirav Modi but aims to terminate contract

A spokesperson for Priyanka Chopra said: "There are speculative reports that Priyanka Chopra has sued Nirav Modi. This is not true. However, she is currently seeking legal opinion with respect to terminating her contract with the brand in light of allegations of financial fraud against Nirav Modi."

Although Firstpost could not independently verify the news, there have been several reports suggesting that Priyanka's management had alleged that she wasn't paid the amount the two parties had agreed on.

UPA govt could've avoided Nirav Modi scam in 2013, says ex-Allahabad Bank director who blew whistle against loan

Dinesh Dubey, a journalist by profession, exclusively spoke to Firstpost exposing the deep-rooted corruption in the banking system and how the UPA government turned a blind eye to illegitimate loan sanctions.

"When I opposed the Gitanjali Gems loan proposal, my fight with Allahabad Bank board got really intense and dirty. They tried to persuade, mollify and even threaten me but I said such loans to the corporates without recovery will only add to more non-performing assets. I also wrote to the Reserve Bank of India and secretary, financial services in the Ministry of Finance in my effort to warn them of a massive scam looming large. My request was to take immediate preventive action and keep a watch on all the companies linked to Choksi's firm, as they were accumulating loans without making payments to the bank," Dubey said.

Eight employees of Punjab National Bank suspended; total number of suspended employees now stands at 18

ED officials sceptical of bank's whistle-blower claim, warn of more skeletons in closet

Enforcement Directorate (ED) officials said they were baffled when the top boss of Punjab Nationa Bank claimed that the bank was both whistle-blower and victim. The ED has sought documents related to SWIFT payments as such transactions are verified to ascertain FEMA provisions. The verification sometimes takes a week before the final clearance is granted

Secondly, ED investigators want to know whether these LoUs were even once — at any point of time over the past seven years — returned to the originating bank branch for verification, and if so, whether or not these transactions were flagged in the annual audit report of the bank’s foreign exchange department.

ED issues summons for appearance against Nirav Modi

The ED on Friday issued summons for appearance to billionaire diamond merchant Nirav Modi and his business partner Mehul Choksi in connection with its money laundering probe, officials said. They said both Modi and Choksi were summoned under the Prevention of Money Laundering Act (PMLA) and asked to depose within a week's time. The notices were handed over to the directors of the firms of the two businessmen as they were not in the country.

What is a diffusion notice?

"This (diffusion) is less formal than a notice but is also used to request the arrest or location of an individual or additional information in relation to a police investigation. A diffusion is circulated directly by an NCB (CBI in this case) to the member countries of their choice, or to the entire INTERPOL membership and is simultaneously recorded in Interpol’s Information System," the website of Interpol says.

Raids on Nirav Modi's boutiques continue

INTERPOL issues diffusion notice against Nirav Modi

Nirav Modi in New York, claims report

CBI seeks revocation of Nirav Modi's passport

The CBI has sought revocation of the passports of billionaire jewellery designer Nirav Modi and his partner Mehul Choksi who are the main accused in alleged fraudulent transactions, officials told PTI. Nirav Modi, who holds an Indian passport, left India on 1 January, while his brother Nishal, a Belgian citizen, departed from the country on same day.

Updates for 16 February start here

Crony capitalism flourishing in Modi govt, says CPM's Prakash Karat

Congress' press conference should actually be directed against UPA govt, BJP national spokesperson Nalin Kohli tells Firstpost

Nirav Modi is an Indian citizen by his brother and wife are not, say officials

Nirav Modi, who is believed to be in Switzerland, was also present in a group photo of Indian CEOs with Prime Minister Narendra Modi, issued by the Press Information Bureau, in World Economic Forum on 23 January, six days before the bank sent its first complaint against him to the CBI, according to the officials.

The diamantaire is an India citizen but his brother Nishal and wife Ami are not Indian nationals, the officials said.

Nirav Modi, a regular feature on the lists of rich and famous Indians since 2013, was booked by the CBI, along with wife, brother and business partner Choksi on 31 January, for allegedly cheating the state-run Punjab National Bank to the tune of Rs 280 crore.

The bank has sent two more complaints to the CBI on Tuesday, saying the scam was worth more than Rs 11,400 crore.

- PTI

PNB gives CBI a list of 150 Letters of Undertaking which were fraudulently issued to transfer money to firms associated with Nirav Modi, PTI quotes officials as saying.

CBI seized 95 documents during raids in Nirav Modi fraud case

CBI looking into second complaint filed by Punjab National Bank

BJP counters Congress' 'Chota Modi' jibe

"Narendra Modi's shadow will not be harmed because of Randeep Surjewala or Congress. He is loved by the people. And what kind of language is Congress using? 'Chota Modi' jibe is shameful, condemnable and utterly irresponsible," Ravi Shankar Prasad said on Wednesday.

Ravi Shankar Prasad slams Congress for charges against NDA govt

"Jinke ghar aise sheeshe ke ho jo tukde tukde hochuke hai, woh dusre ke ghar pathar na feke(Those who live in house made of broken glass should not throw stones at others' residences," Union minister Ravi Shankar Prasad said at a press conference.​

Ravi Shankar Prasad slams Congress over 'Chota Modi' jibe

Union minister Ravi Shankar Prasad hit out at the Congress for linking Nirav Modi's fraud case to Narendra Modi. He said, "The BJP takes strong offence by calling someone 'chota Modi'. It is derogatory and scandalous. Nirav Modi was not the part of the delegation at Davos. He reached there on his own."

He further said that "very good photographs of the Congress leaders with Mehul Choksi is available with us." "But we don't want to stoop to that level," he added.

No one will be spared, says Ravi Shankar Prasad

"Till now, both the CBI and ED has taken speedy action in the wake of complaint made to the CBI. Till now, CBI has raided nine properties belonging to Nirav Modi: 3 in Surat, 4 in Mumbai and 2 in Delhi. Assets worth 13,000 has been seized and action has been taken to revoke his passport. Look out notice has been issued," Union minister Ravi Shankar Prasad said on Wednesday.

He said, "I want to say one thing clearly. No one will be spared. This will be regardless of the status and the status of the accused,"

CBI seals Nirav Modi's Worli residence

India Today reported that among the 40 properties raided by CBI in connection with the alleged fraud involving Nirav Modi, 9 properties belonged to the jeweller.

Why was Nirav Modi part of Narendra Modi delegation at WEF, asks AAP

Speaking at a press conference, members of the Aam Aadmi Party mentioned Vijay Mallya and Nirav Modi, and claimed that before any such businessman becomes a fugitive, he is "seen hanging around the BJP office".

The AAP then asked why Nirav Modi was "part of a delegation" that accompanied the prime minister and sought response from the saffron party on the row. "We think he(Narendra Modi) is busier with speeches and speaking his 'Mann ki Baat'," one of the AAP leaders said.

This is a serious scam of epic proportions, says Congress' Sanjay Jha

Speaking to India Today, Congress leader Sanjay Jha said that the alleged fraud involving jeweller Nirav Modi "is a serious scam of epic proportions".

He addressed the row on Nirav Modi's photograph with Narendra Modi at the World Economic Forum 2018 in Davos, asking how there was no background check done on those posing with the prime minister.

'No meeting between Nirav Modi and Narendra Modi in Davos'

40 properties of Mehul Choksi, Nirav Modi's relatives sealed to prevent documents leak, reports India Today

What was Nirav Modi doing at WEF 2018 with Narendra Modi, asks Congress

CBI issues lookout notices against Nirav Modi, his wife, brother, and Mehul Choksi, reports India Today

Quoting sources, India Today reported that ED will also issue a lookout notice in the coming days.

Priyanka Chopra accuses Nirav Modi of defrauding her: Times Now

Times Now reported that Bollywood actress Priyanka Chopra said that she never got paid for a diamond advertisement.

PNB stocks tank 9%

Shares of Punjab National Bank today extended its fall for the second straight session, falling as much as 9 percent in morning trade after the lender said it has detected a USD 1.77 billion fraud. The stock opened at Rs 137, then hit a low of Rs 133.45, down 8.47 per cent over its previous closing price. On the NSE, the stock opened at Rs 137.60, then fell 8.57 per cent to Rs 133.35.

This is the second consecutive day of decline for the stock. It had slumped 10 percent yesterday. The state-owned bank said it had detected a USD 1.77 billion (about Rs 11,400 crore) fraud in which billionaire jeweller Nirav Modi allegedly acquired fraudulent letters of undertaking (LoUs) from one of its branches for overseas credit from other Indian lenders. — PTI

Nirav Modi has left India, government sources tell CNN-News18

RBI and Sebi to approach counterpart in HK

The Reserve Bank and the Sebi are likely to approach their counterparts in Hong Kong for cooperation in the matter relating to the whopping over Rs 11,400 crore fraud at public sector lender PNB where several entities have come under the scanner, officials said on Wednesday.

The regulators are set to spread their net overseas as it has been found that credit was availed from various bank branches in Hong Kong on the basis of Letters of Undertaking (LoUs) issued by Punjab National Bank.

Jewellery stocks plunge

At the bourses, Gitanjali Gems plunged nearly 19 percent on reports over its involvement in the PNB fraud case in morning trade after the company came under scanner of various investigating agencies following the Punjab National Bank's declaration of nearly Rs 11,400-crore fraud. The stock today opened on a bearish note at Rs 48, then lost further ground to touch a low of Rs 47.50, down 18.94 per cent over its previous closing price.

CBI books two persons in PNB case

A look back at how the scam was carried out

Last week, PNB had lodged an FIR with CBI stating that fraudulent LoUs worth Rs 280.7 crore were first issued on 16 January. At the time, PNB had said it was digging into records to examine the magnitude of the fraud.

In the complaint, PNB had named three diamond firms -- Diamonds R Us, Solar Exports and Stellar Diamonds -- saying they had approached it on January 16 with a request for buyers' credit for making payment to overseas suppliers...

Read full article here: www.firstpost.com/business/pnb-rs-11400-cr-fraud-heres-how-the-state-run-bank-was-victimised-by-fraudsters-4352299.html