PNB scam updates: Gitanjali Gems to shut down completely; employees protest after being asked to leave

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.

Finance ministry to seek BBB’s input to see if PNB top management reshuffle is possible

According to Moneycontrol , a finance ministry official told CNBC-TV18 that the ministry was planning to seek Banks Board Bureau’s (BBB) inputs on whether a PNB top management reshuffle is possible.

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 seized 9 cars belonging to #NiravMod and his companies. These cars include one Rolls Royce Ghost, two Mercedes Benz GL 350 CDIs, one Porsche Panamera, 3 Honda cars, one Toyota Fortuner and one Toyota Innova. pic.twitter.com/Kfx0rkPrIW

— ANI (@ANI) February 22, 2018

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

ED also froze mutual funds and shares worth Rs 7.80 Crore of #NiravModi and worth Rs 86.72 crore of those belonging to #MehulChoksi Group.

— ANI (@ANI) February 22, 2018

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

#PNBScam: ED seized 9 cars belonging to #NiravModi and his companies. These cars include one Rolls Royce Ghost, two Mercedes Benz GL 350 CDIs, one Porsche Panamera, 3 Honda cars, one Toyota Fortuner and one Toyota Innova.

— IndiaTodayFLASH (@IndiaTodayFLASH) February 22, 2018

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

According to  News18 , the actresses have accused Mehul Choksi-owned Gitanjali Gems of non payment of dues and breach of contract. A spokesperson for Ranaut said, “There are outstandings due on Kangana’s Nakshatra endorsement, beyond the stipulated contract.” She was the company’s brand ambassador since 2016 and claims she has not been paid her dues fully for endorsing the jewellery brand.

On the other hand, Bipasha Basu, who endorsed Gili, accused the Gitanjali Gems group of using her photographs even after her contract expired.

Visuals of CBI raiding Nirav Modi’s Alibaug farmhouse earlier

#Maharshtra: Visuals of CBI team raiding #NiravModi's farmhouse in Alibag
. (20.2.2018) pic.twitter.com/3BJp9i0bBV

— ANI (@ANI) February 22, 2018

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

#EXCLUSIVE -- High net worth individuals and clients of Nirav Modi get I-T notices. Names of high net worth individuals recovered from Nirav's computers | @Ashish_Mehrishi with more details #BigBankScam #EndBankLoot pic.twitter.com/GpswYMzO0U

— News18 (@CNNnews18) February 22, 2018

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

RECAP: Karnataka CM Siddaramaiah takes a dig at BJP and Narendra Modi

FM Jaitley blames Bankers/Auditors for the #NiravModi scam. @BSYBJP blames me for the scam 😊. PM is silent. Maybe he is thinking of blaming Indira Gandhi for nationalizing the Banks or Lala Lajpat Rai for setting up the PNB

Blame anyone but themselves appears to be the mantra. pic.twitter.com/2JXfcWTbjQ

— Siddaramaiah (@siddaramaiah) February 21, 2018

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

​

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. 

RECAP: Nirav Modi is in Belgium, say reports

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

First Cut by Manjul

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

National Organisation of Bank Workers claims close to 18,000 employees have been transferred following the #PNBScam. This comes after the CVC had asked for the transfer of all the officials who have served for 3 years and clerks who have served more than 5 years. #BigBankScam pic.twitter.com/paA28dakbm

— News18 (@CNNnews18) February 21, 2018

‘Checks in place, but no one cares’

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 who 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.

For instance, the SWIFT messaging platform that was used by the perpetrators in the PNB case is subjected to a daily check by the branch manager, which is compulsory in any bank. Even if one imagines that this part failed, the branch manager has to do a daily tally of income and expenditure in the branch while one of the officers (not involved in the transactions) combs through the books to look for suspicious transactions, 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,” said the banker. That apart, given the tremendous pressure on bankers to generate business, top-level officers often turn a blind eye to illegal business activities.

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

Visuals from Youth Congress protest against PNB scam

Mumbai Youth Congress (North West District) protested against #PNBScam outside Andheri Railway Station led by Mumbai Incharge Shri Rutvij Joshi and Office Bearers.

D.N. Nagar police arrested the Youth Congress workers during the protest. pic.twitter.com/QXvnMB9RS6

— Indian Youth Congress (@IYC) February 21, 2018

CBI calls around ten PNB officials for questioning in Mumbai

#JustIn -- Around 10 PNB officials called for questioning at the CBI office in Mumbai. #BigBankScam #EndBankLoot pic.twitter.com/QA5Ek99VXT

— News18 (@CNNnews18) February 21, 2018

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

Modi Ji, last month you ignored my suggestions for your Mann Ki Baat monologue.

Why ask for ideas when in your heart you know what every Indian wants to hear you speak about?

1. Nirav Modi's 22,000 Cr. Loot & Scoot

2. The 58,000 Cr. RAFALE scam.

I look forward to your sermon. pic.twitter.com/jp0AnLePtU

— Rahul Gandhi (@RahulGandhi) February 21, 2018

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

Congress brings back ‘Chhota Modi’ jibe to slam Modi govt over Nirav Modi fraud case

The Modi Govt's silence on the #ChhotaModi fraud is systematically eroding investor confidence in the country. It also raises serious questions over the credibility of our banking system but PM Modi seems to be in no mood to address the nation.https://t.co/a8SovVYzE4

— Congress (@INCIndia) February 21, 2018

Centre opposes plea for SIT probe

The Centre on Wednesday opposed in the Supreme Court a PIL seeking an independent probe and deportation of billionaire jeweller Nirav Modi in the over Rs 11,000 crore PNB fraud case, saying an FIR has been lodged and a probe was on.

A bench comprising Chief Justice Dipak Misra and Justices AM Khanwilkar and DY Chandrachud said it would not say anything on the matter now and listed the PIL filed by lawyer Vineet Dhanda for further hearing on 16 March.

Attorney General KK Venugopal, appearing for the Centre, said he was opposing the PIL on various grounds, including that an inquiry has started after the FIR was registered.

The PIL has made Punjab National Bank, Reserve Bank of India and the ministries of finance and law and justice as parties. It has sought a direction for initiation of deportation proceedings against Nirav Modi and others allegedly involved in the banking fraud, preferably within two months.

The plea has asked for a special investigation team (SIT) to probe the banking fraud, allegedly involving billionaire jewellers Nirav Modi and Mehul Choksi. It has also sought a probe into the role of the top management of the Punjab National Bank (PNB).

PTI

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

Please explain to me who is a fugitive? Against him there are summons to appear in person. You have branded him as a fugitive on what basis, please tell me? I am a very optimistic person. The fate of the case is 'khoda pahaad nikli chuhiya': Vijay Aggarwal, Nirav Modi's lawyer pic.twitter.com/QivTxs5R1Z

— ANI (@ANI) February 21, 2018

Rebel Congress MP Shehzad Poonawalla questions Rahul Gandhi over PNB scam

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.

Read the full report here

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.

To read more, click here

SC to let govt continue investigation into PNB scam

#PNBScam case: PIL petitioner Vineet Dhanda told SC that the whole country is watching and that the SC must at least issue notice to the Centre as the government has done nothing in the past in a similar case relating to Vijay Mallya.

— ANI (@ANI) February 21, 2018

Siddaramaiah takes further potshots at BJP

FM Jaitley blames Bankers/Auditors for the #NiravModi scam. @BSYBJP blames me for the scam 😊. PM is silent. Maybe he is thinking of blaming Indira Gandhi for nationalizing the Banks or Lala Lajpat Rai for setting up the PNB

Blame anyone but themselves appears to be the mantra. pic.twitter.com/2JXfcWTbjQ

— Siddaramaiah (@siddaramaiah) February 21, 2018

Nirav Modi is abroad on ‘business purposes’, says lawyer

Nirav Modi, the alleged kingpin of the Rs 11,400 crore Punjab National Bank scam, is not absconding but is out on business, the diamond merchant’s lawyer has told the media. “He has a global business and he went out of India for business purpose. Now his passport has been revoked. His family members, some of them are foreign nationals, also stay abroad most of the time,” the lawyer, Vijay Aggarwal, was quoted as saying by DNA .

PNB case: Issuing of LoUs going on since 2008, CBI tells court

A special CBI court on Tuesday remanded three officials of Punjab National Bank in police custody till 3 March. These three were arrested on Monday in connection with alleged fraud of Rs 11,384 crore, while observing that there is a possibility of their involvement in diverting the bank money. During the arguments over the custody of the trio, the CBI told the court that key accused Gokulnath Shetty, then deputy manager (now retired) of PNB, had told them that issuing of the Letter of Undertakings (LoUs) had been going on since 2008.

PTI

PNB fraud might impact ease of doing business: PHD Chamber

PHD Chamber of Commerce and Industry on Tuesday expressed concern over what it termed as the “crisis” triggered in the banking industry following the fraud detected in state-run Punjab National Bank.

In a statement, PHD Chamber said it is surprised how the bank’s internal audit system failed to detect anomalies in transactions leading to the alleged fraudulent loans given out to the borrowers.

PTI

‘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).

A Firstpost investigation into the Punjab National Bank-Nirav Modi fraud case shows that corruption has gone into the very bone and marrow of state-owned banks and this is not just a ‘one-off’ for several banks, including PNB and others like UCO and Canara, which have encountered exposure in the Modi-Mehul Choksi scam.

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.

It is alleged that the issuance of Letters of Undertaking (LOUs) to Nirav Modi group firms without sanctioned limits started during his tenure. Jindal is presently posted as general manager, credit, at PNB’s head office in New Delhi. It is alleged that Rs 11,400 crore of LoUs were fraudulently issued to the firms of Nirav Modi and Choksi.

— PTI

Supreme Court to hear plea seeking Nirav Modi’s deportation

The Supreme Court will hear a plea seeking the deportation of diamond merchant Nirav Modi, the main accused in the alleged Rs 11,300 crore scam, Times Now reported.

PNB’s general manager-rank officer arrested

In the early hours of Wednesday morning, the CBI arrested a general manager rank officer of the Punjab National Bank in Rs 11,400 crore scam, said officials.

— PTI

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

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

— ANI (@ANI) February 20, 2018

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

I would like to request Modiji on behalf of all of us to bring back the other Modiji (Nirav Modi) when he goes on another of his many foreign trips: @OfficeOfRG #BigBankScam pic.twitter.com/nwQdyK9aXK

— News18 (@CNNnews18) February 20, 2018

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

Photographs(Nirav Modi Davos photo) prove nothing,even you people are sitting with me & if one of you commits a crime will you make me liable too? As far as #NiravModi case is concerned Centre has taken it seriously and already seized more than 5 thousand crore assets: Amit Shah pic.twitter.com/a6QUz0DAE1

— ANI (@ANI) February 20, 2018

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

#PNBFraudCase: Mumbai's Special CBI court sends Bechu Tiwari, Yashwant Joshi and Praful Sawant to Police custody till 3 March.

— ANI (@ANI) February 20, 2018

CBI finds news farmhouse of Nirav Modi near Alibaug

CBI has found a new farmhouse of #NiravModi in Alibagh near Mumbai where searches are underway: CBI

— ANI (@ANI) February 20, 2018

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.

CBI questions 10 bank officials including PNB Executive Director

CBI questions 10 bank officials including PNB Executive Director a day after three bank officials were arrested.

Nirav Modi’s palatial Alibaug bungalow being searched

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

PNB scam was a sin committed during UPA tenure, it has been unearthed now. We will take all necessary action: UP CM @myogiadityanath https://t.co/JQJlKZeiOk pic.twitter.com/Mrql7gZFlh

— ABP News (@ABPNews) February 20, 2018

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

1/2Repeat wht I said on 17/2-neither my family nor I nor any co of ours has the remotest lender borrower s’holder or director interest in any modi/Chokshi co. 1 co-adwait-had five yr old tenancy to modi co (vacated in 2017) & my wife purchased some jewellery all paid in chq

— Abhishek Singhvi (@DrAMSinghvi) February 20, 2018

2/2 IT has sent questionnaire which wl be answered in accordance with law. All supporting docs wl be produced. But (a) has notice been sent to all others on that list or only one who happens to he in Cong party (b) whose computer seized on which date and how many names on list?

— Abhishek Singhvi (@DrAMSinghvi) February 20, 2018

3/3happen 2be India’s highest taxpayer in my category for many years &often even across diff categories. Purchases in chq of large amts all reflected in accounts. Harassment, innuendo, insinuation must have its limits. 1st leak to friendly media, then issue notice 2only one.

— Abhishek Singhvi (@DrAMSinghvi) February 20, 2018

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

2/4 IT queries by letter wl be replied to in accordance with law. All docs asked for wl be submitted. Don’t intend to give pleasure of trial by media to some sections of so called media which define objectivity as doing Govt bidding. Why no notice to anyone else in that list.

— Abhishek Singhvi (@DrAMSinghvi) February 20, 2018

3/4 r other names on list going 2get notice or only me? Receipts, chqs and bills wl be produced BT wl govts favourite channel name a few others on the alleged list or are all energies of IT and few channels concentrated only on my family?

— Abhishek Singhvi (@DrAMSinghvi) February 20, 2018

Abhishek Manu Singhvi slams news channel for repeating allegations

1/4Timesnow conveniently carries selectively leaked doc allegedly recovered frm someone’s PC on 17/2; spends 10 hrs repeating same thing; IT issues notice with queries on 20/2; released to press immly. Defn of privacy & hounding by Govt re India’s highest taxpayer in My category

— Abhishek Singhvi (@DrAMSinghvi) February 20, 2018

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 sold dreams to many people including the government which happily slept while he ran away with the public’s hard-earned money.": Congress President Rahul Gandhi. #OneMeghalaya

— Congress (@INCIndia) February 20, 2018

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

#PNBFraudCase Update: I-T Department sends notice to Abhishek Manu Singhvi's wife in Nirav Modi case@INCIndia @niravmodijewels @IndiaPNB @DrAMSinghvi @IncomeTaxIndia pic.twitter.com/sW9pbT5zEs

— ET NOW (@ETNOWlive) February 20, 2018

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

This transaction (unaccounted money paid to Nirav Modi) is not done by Congress party. Singhvis must have purchased some jewellery. It is inappropriate to assume that Congress is involved in this matter: NCP leader Majeed Memon #CongNiravDiary

— TIMES NOW (@TimesNow) February 20, 2018

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

Details of the PILs filed in the Supreme Court

Two separate petitions were filed before the apex court on Monday seeking its direction to the Centre to initiate the process of deportation of Nirav Modi, who is abroad, and others allegedly involved in the case as soon as possible, preferably within two months.

One of the petition was mentioned today before a bench of Chief Justice Dipak Misra and Justices AM Khanwilkar and DY Chandrachud. The bench posted the matter for hearing on 23 February.

The PIL, filed by petitioner Vineet Dhanda, through advocate JP Dhanda, has sought setting up of a special investigation team (SIT) to probe the banking fraud, allegedly involving billionaire jewellers Nirav Modi and Mehul Choksi.

It also sought a probe into the role of the top management of the Punjab National Bank (PNB).

The other plea, filed by advocate ML Sharma, had said that the SIT should consist of retired judges of the apex court while claiming that the banking fraud has caused serious injury to the general public and the state’s treasury.

It should be investigated not by an agency “being controlled by the political leaders/authorities”, Sharma’s petition had said.

The plea has alleged that loans were issued in the case without following Reserve Bank of India’s (RBI) financial rules and regular systems.

The plea by Dhanda has sought the court’s direction to the Finance Ministry to set guidelines for grant of higher amount of loans of Rs 10 crore and above to ensure safety and its recovery. — PTI

‘Want strict action against those responsible’

Filed PIL over #PNBScam, want strict action against bank employees instrumental in siphoning of money, 3yr imprisonment for those responsible for scam be converted to life imprisonment & file of the one who takes loan to go to Finance ministry: JP Dhanda, Vineet Dhanda's lawyer pic.twitter.com/45MvXXBlp1

— ANI (@ANI) February 20, 2018

International rating agency Moody’s places PNB under review for downgrade: PTI

IndusInd Bank says it has no direct or indirect exposure to PNB scam

Private sector lender IndusInd Bank said it has no direct or indirect exposures to firms floated by scam-tainted Nirav Modi.

The bank, one of the most active lenders in the gems and jewellery sector, however has a “small” exposure to Gitanjali Gems, promoted by Modi’s uncle Mehul Choksi which is also an accused in the Rs 11,400-crore fraud.

“IndusInd Bank has no direct credit exposures to Nirav Modi nor any indirect credit exposures on the basis of the letters of undertaking (LOUs) issued by Punjab National Bank (PNB),” the lender said in a statement. — PTI

Details of Nirav Modi’s cash bonuses, stock discrepancy emerge

The skeletons continue to tumble out of the closet of Nirav Modi and his associates in the Rs 11,360-crore Punjab National Bank case. One of the latest among these is last year’s Income Tax Department report on Firestar Diamond International (owned by Modi), an exclusive copy of which is in Firstpost’s possession.

According to the report, “Nirav Modi Group is accepting ‘On Money/Cash’ customers against sale of jewellery/diamonds which is over and above the sale consideration recorded in the books of account.”

30 employees of Gitanjali and PNB reach CBI headquarters in Mumbai: ANI

Corporate frauds, rise in NPAs make up multi-pronged conspiracy against India’s banking system

A middle class law abiding citizen with clear repaying capacity finds it difficult to get a bank loan even after mortgaging his assets which are worth much more than the loan amount. A farmer has to commit suicide when he is named and shamed by banks for not being able to repay his few thousands loan as the nature and market cripple his livelihood. But, Nirav Modi and the likes can easily get away for years together by taking LOUs to the tune of thousands of crores, bypassing the core banking solutions and regulatory supervision.

CBI and ED ask Nirav Modi’s associates: ‘Where is the money?’

The major portion of cash, sources said, may have already ended up in secret accounts in the Bahamas and Jersey, a tax haven situated between England and France. The income tax authorities have shared some details of Nirav’s offshore activities, revealing that he was operating several accounts in Mauritius, Singapore, the Bahamas and Jersey, which could have been used to park the money siphoned off from PNB. Huge sums by way of Letters of Undertaking (LoUs) were also raised in Antwerp, Frankfurt, Bahrain and Hong Kong which could have been laundered by moving back and forth through shell companies before reaching the final destination.

Supreme Court to hear PIL on PNB loan fraud on Friday

According to CNN-News18, Chief Justice of India Dipak Misra has agreed to list the case on an urgent basis.

The PIL filed seeks deportation of Nirav Modi in two months.

Fitch Ratings places PNB’s viability rating of ‘bb’ on Rating Watch Negative

Fitch Ratings places Punjab National Bank's Viability Rating of 'bb' on Rating Watch Negative (RWN), following large fraud reported by PNB. Fitch will resolve Rating Watch once more clarity emerges on extent of control failures & the impact on PNB's financial position #PNBFraud

— ANI (@ANI) February 20, 2018

PNB’s statement to its customers

The Bank has the capacity and capability to handle the situation and protect the interest of the Institution. Some news like restrictions on withdrawal etc. is floating in some channels. It has been created by some miscreants and is totally baseless. pic.twitter.com/Of0UDBgj6v

— Punjab National Bank (@pnbindia) February 19, 2018

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

Like 2G Scam & Bofors matter this case will also collapse. Agencies are making noises in the media but they will not be able to prove the charges in a court of law. I am sure #NiravModi will not be found guilty: Vijay Aggarwal, Nirav Modi's lawyer to ANI (file pic) #PNBFraudCase pic.twitter.com/IHGzhMMIXJ

— ANI (@ANI) February 20, 2018

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

#BREAKING -- #NiravModi Case: Enforcement Directorate (ED) raids Gitanjali Jewellers in Jabalpur, Madhya Pradesh #BigBankScam #EndBankLoot pic.twitter.com/WXKSgWxFya

— News18 (@CNNnews18) February 20, 2018

Preliminary income tax assessment reveals high value of six sea-facing houses owned by Nirav Modi and his wife

A preliminary assessment by the income tax department in the Nirav Modi case suggests that of the 29 properties attached a few days ago, six flats  alone were worth over Rs 900 crore, while the total value of the properties attached runs into thousands of crores, reported The Times of India .

Demand for SIT probe

A plea seeking an SIT probe into the Punjab National Bank (PNB) fraud case of over Rs 11,000 crore is likely to be mentioned before the CJI for an urgent hearing on Tuesday, according to Financial Express .

RECAP: CBI team seized 10 computers, files and documents in the raid at Punjab National Banks’s MCB Brady House branch in Mumbai.

CBI team seized 10 computers, files and documents in the raid at Punjab National Banks's MCB Brady House branch in Mumbai. #PNBFraudCase

— ANI (@ANI) February 19, 2018

PNB says enough arrangements for customers

PNB assured all its customers that “enough arrangements” for their banking transactions without any inconvenience, and it has sufficient assets to meet any liability. Replying to clarifications sought by stock exchanges, the PNB said: “Bank has enough assets to meet any liability which is decided as per law.”
However, it added realisation of any specific asset would be decided at the time of need with the approval of board.

PTI

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

A tiny, decrepit room in Kalbadevi, a chawl in Kalyan, a run-down accommodation in Dahisar, and an old Amboli flat with barely any amenities are the registered residential addresses of directors appointed by the companies of wanted billionaire jeweller Mehul Choksi, reported Bombay Mirror . These people are actually ordinary employees and small-time retail investors who were persuaded by the companies to serve as top company members on paper.

Nirav Modi was not of PM’s delegation at Davos, says BJP leader

#NiravModi was invited by an org to Davos. He wasn't part of delegation of PM. CM's writing letter to FM about it when her own minister Amit Mitra knows #MehulChoksi. He was invited in Bengal Business Summit 2017-18. What right do they have to blame BJP?: Dilip Ghosh, BJP (19.02) pic.twitter.com/AAlXb7yDct

— ANI (@ANI) February 20, 2018

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.

RECAP: ‘Compulsive liar’ Mehul Choksi should have been caught 4 years ago, says ex-Gitanjali Gems MD Santosh Srivastava

​

Santosh Srivastava, who was managing director for four years and vice-president for two years of Gitanjali Gems, calls himself a whistleblower. It was after working there for six years that he decided to resign, citing the ‘unethical’ manner of working by his boss and founder of the company, Mehul Choksi. He would fudge accounts, the inventory would show less than what was being declared, among other things.

RECAP: A timeline of how the Rs 11,400-crore scam involving Nirav Modi unfolded

Click here to look at the events that unfolded since 16 January when PNB first found out about the fraudulent transactions in what has now become the largest banking scam in Indian history.

Here are some unanswered questions in the Rs 11,400 crore Punjab National Bank scam  

The arrests of Gokulnath Shetty and Manoj Kharat, the former deputy manager and single window manager respectively at Punjab National Bank (PNB), make it sounds like the Rs 11,400 crore bank fraud that was executed using the issuance of fake Letter of Understandings (LoU) to billionaire jewellery maker Nirav Modi was an act of fraud and only that. But one will miss the larger problem if the case is looked at this way.

Central agencies intensify crackdown on Nirav Modi, Mehul Choksi; assets worth Rs 5,671 crore seized

The crackdown on billionaire diamantaire Nirav Modi and his uncle Mehul Choksi intensified on Monday with the ED seizing jewellery worth Rs 22 crore, the I-T department attaching seven properties, and the CBI grilling four senior executives of his company.

Central Vigilance Commissioner KV Chowdary met senior PNB and finance ministry officials in connection with the Rs 11,400-crore fraud case.

Enforcement Directorate (ED) Chief Karnal Singh also flew down to Mumbai to review the PNB fraud-related anti-money laundering investigations which are being conducted by a special team of the agency.

The total value of gems and jewellery seized so far stands at Rs 5,671 crore.

CBI seizes 10 computers, files and documents in a raid at Punjab National Banks’s Brady House branch in Mumbai, ANI reports

Narendra Modi post Nirav Modi: PM’s image as an ‘outsider’ who can cleanse the system has taken a beating

Let there be no doubt that Modi’s image is considerably undermined after A Raja’s acquittal in the 2G scam and further so with the unfolding of the Nirav Modi scam. The quality of governance under his promised watch has come under critical scrutiny. The question arises: Why has the situation come to such a pass? An accomplished administrator that he was as the Gujarat chief minister, are we seeing unmistakable signs of drift in Modi’s governance in New Delhi? Is he paying more attention to politics than governance?

Full analysis here

I-T department attaches seven more properties of  Gitanjali Group in Mumbai

IT department attaches 7 more properties of #GitanjaliGroup, out of which 4 properties are registered in the name of #GitanjaliGems, 2 properties belongs to #MehulChoksi, 1 property registered in #Gili India's name. All the attached properties are in Mumbai: IT Sources

— ANI (@ANI) February 19, 2018

Banking fraud subdues risk-taking appetite, equities close lower 

The recent turbulent developments in the country’s banking sector kept investors’ risk-taking appetite low, leading the key Indian equity indices to close in the negative territory for the fourth consecutive trade session on Monday.

According to market observers, heavy selling pressure in capital goods, auto, metals and banking stocks, along with continued outflow of foreign funds and a surge in crude oil prices, dampened market sentiment despite positive global cues.

Although both indices — BSE Sensex and NSE Nifty50 — recouped some losses during the late afternoon trade session on short covering, they failed to exit the negative territory and closed on a lower note. 

The wider Nifty50 of the National Stock Exchange (NSE) shed 73.90 points or 0.71 percent to close at 10,378.40 points. On a closing basis, the Sensex declined by 236.10 points, or 0.69 percent, to 33,774.66 points. The BSE market breadth was bearish as 2,061 stocks declined against 689 advances.

“Markets corrected further on Monday. A sharp bounce back from the lows in the afternoon session curbed the losses,” Deepak Jasani, Head – Retail Research, HDFC Securities, told IANS. “Sentiments continued to be affected by the recent detection of a massive fraud at a Mumbai branch of the state-run Punjab National Bank (PNB). Metal stocks (especially Steel) came under selling pressure as investors got concerned over the funding arrangement for bids for sick companies by sector leaders,” he said. — IANS

30 Congress MLAs suspended from Chhattisgarh Assembly for claiming govt invited corporation associated with Nirav Modi to invest in the state 

30 Congress MLAs have been suspended from Chhattisgarh Assembly after they raised protest over Chhattisgarh Chief Minister Raman Singh’s invitation to Metals & Mining Corporation’s Rio Tinto for investment in the state, ANI reports. 

Congress claims that the corporation has connections with Nirav Modi and is blacklisted in Madhya Pradesh. According to PTI, the Congress members also demanded Raman Singh’s resignation over the issue.

Regarding the allegations, Singh said Congress has been levelling “baseless and hypothetical charges” as they don’t have any other issue left to raise in the House.

Mamata Banerjee alleges PNB is not the only bank involved in money laundering cases, says other banks being ‘protected’ by BJP govt

Continuing her attack on the Centre over the multi-crore PNB fraud, West Bengal Chief Minister Mamata Banerjee on Monday alleged that there are “other banks” involved in such money laundering cases with their chiefs being protected by the BJP government.

“We know everything. Not only the Punjab National Bank, there are other banks also and in those banks, there are heads who are being sheltered. It is imperative to find out who are these shelter providers? Who is giving them protection?” Banerjee said while addressing a gathering in Baharampur.

Reiterating her tweet on Sunday, Banerjee stressed that the fraud was fuelled one year before demonetisation. “I think from the time of note bandhi… One year before the start of note bandhi this planning was done. Take Baroda Bank, Canara Bank, and other banks I know of…where people have been recruited dubiously…The documents are there for everyone. Evidence does not lie. So I don’t trust loudmouths and those who only give speeches,” she added. — IANS

This is just the tip of the iceberg. This big banking fraud was fuelled at the time of #DeMonetisation. Big money laundering happened during DeMo. Key bank officials were changed. Who are these people put in? There are more banks involved. The full truth must come out

— Mamata Banerjee (@MamataOfficial) February 18, 2018

Former Gitanjali MD says Mehul Choksi sold overpriced diamonds

A Moneycontrol report reveals that the former Gitanjali Gems MD has accused Mehul Choksi of selling overpriced and fake diamonds. Santosh Srivastava told _Moneycontrol _ that a large amount diamonds sold by Choksi were lab produced, adding that the valuations were nowhere near the price that they were sold.

“The diamonds were sold at a premium in the name of the brand value, cuts and certifications that were given out. The certifications too were forged. A diamond that claimed to be of Grade A in a purchase made was actually Grade C,” Srivastava told Moneycontrol. According to the report, Srivastava was head of the retail business at Gitanjali until 2013.

Rahul Gandhi slams Narendra Modi again, questions prime minister’s ‘silence’ on PNB scam

Congress President Rahul Gandhi today fired yet another salvo at Prime Minister Narendra Modi over his “silence” on the multi-crore PNB bank fraud, asking where the “country’s watchman” was when jeweller Nirav Modi fled the country like liquor baron Vijay Mallya. 

Gandhi took the swipe at the prime minister for his refrain during poll rallies that he would act as a watchman for the country and cited his “na khaoonga_,_ na khaane doonga” (will neither do nor allow anyone to do corruption) statement.

Taking to Twitter, the Congress chief said the entire country was keen to know the “secret behind his silence” and alleged that it screams out loud where his loyalties were. — PTI

पहले ललित फिर माल्या
अब नीरव भी हुआ फरार
कहाँ है 'न खाऊँगा, न खाने दूँगा' कहने वाला देश का चौकीदार?

साहेब की खामोशी का राज़ जानने को जनता बेकरार
उनकी चुप्पी चीख चीख कर बताए
वो किसके हैं वफादार#ModiRobsIndia

— Rahul Gandhi (@RahulGandhi) February 19, 2018

Govt may review norms for statutory auditor appointment in PSBs, says official 

Hit hard by the country’s biggest bank fraud at PNB, the government is looking at tightening the norms for appointment of statutory auditors at public sector banks (PSBs) to help detect any irregularities early and take corrective actions, according to a government official.

At present, PSBs appoint their own auditors and questions have been raised in some quarters on why a Rs 11,400 crore fraud could have gone undetected by the auditors of Punjab National Bank (PNB) for seven long years.

A senior government official told PTI that perhaps there is a need to bring in a membrane in banks getting to choose their own auditor and to bring in a dispassionate arm’s length decision-making in such appointments. PSBs are allowed to appoint statutory central auditors on an annual basis, subject to their fulfilling the eligibility norms prescribed by the RBI.

The official suggested that there should be churning every year on the appointment of auditors in a PSB. “There are auditors who have been auditing the same bank every year and that is when the sense of comfort crops in while dealing with management,” he added.

He said the government is committed to clean up the balance sheet of the PSU banks. —PTI

Visuals of ED raids at a Gili showroom in Thane, Mumbai 

Maharashtra: Enforcement Directorate conducted raids at a #Gili showroom in Thane #GitanjaliGems pic.twitter.com/pW3Z7a37Ei

— ANI (@ANI) February 19, 2018

17 officials are being questioned in connection with scam

17 officials are being questioned in connection with the Nirav Modi scam, reports News18. The report adds that 13 suspects are from Punjab National Bank while three are from Nirav Modi’s firm. According to ANI, officer who were in the GM level when the scam occured were also questioned by CBI.

No response to summons sent to Nirav Modi, other officials, ED sources tell ANI 

There has been no response on the summons sent to #NiravModi or the other accused so far. It is also being investigated as to why Gokulnath Shetty wasn't promoted in all these years. First LoU was issued in March 2011 & was rolled over: ED Sources #PNBFraudCase

— ANI (@ANI) February 19, 2018

ED says assets worth Rs 5,716 crores have been seized in raids so far, the agency adds that 39 raids were conducted on Monday, out of which 10 were conducted in Mumbai

Assets worth Rs 5716 Crore have been seized in the raids till now. 39 raids were conducted today, out of which 10 were in Mumbai: ED Sources #PNBFraudCase

— ANI (@ANI) February 19, 2018

Delhi High Court to hear an appeal of Mehul Choksi regarding an FIR registered against him on Tuesday, report ANI 

Delhi HC to hear tomorrow, the appeal of #MehulChoksi regarding the FIR registered against him. A group of seven engineering graduates from Rajasthan Institute of Engineering and Technology (RIET) in Jaipur had filed an FIR against Choksi in 2017.

— ANI (@ANI) February 19, 2018

“We will find out how the money laundering took place. As it is in foreign jurisdiction it will take time to investigate,” ED says to ANI

Cartoon by Manjul 

Will honour bonafide commitments under LoUs and FLCs, says PNB

Punjab National Bank on Monday said it will honour all its “bonafide commitments” under the Letters of Undertaking (LOUs) and Foreign Letters of Credit (FLCs) in connection with the banking fraud involving billionaire jewellers Nirav Modi and Mehul Choksi.

LOUs have been used to defraud PNB, the country’s second-largest bank, to the tune of Rs 11,384 crore.

PNB, in a notice posted on its website, said: “We will honour all our bonafide commitments under LoUs and FLCs as per law of the land and as per specific existing guidelines of regulator i.e. RBI on LOUs and FLCs.” — PTI

ED says Rs 22 crores seized from Nirav Modi’s and Mehul Choksi’s companies on Monday 

ED said that 39 raids were conducted on Monday, with over Rs 22 crores being seized from Nirav Modi’s and Mehul Choksi’s companies. News18 reports that ED is examining records of Punjab National Bank and has begun started interrogating people.

Two senior officials of Gitanjali resign after being named in a CBI FIR 

Following the unravelling of the $1.8 billion Punjab National Bank (PNB) fraud, two senior officials of Gitanjali Gems — Chandrakant Karkare and Pankhuri Warange — resigned from the company, according to a regulatory filing with the stock exchanges on Monday.

The names of the two officials were mentioned in the FIR filed by the Central Bureau of Investigation on the fraud. 

While Karkare cited personal problem as the reason behind resigning from the post of Chief Financial Officer (CFO) of the company, Warange said she, as the company secretary and compliance officer, had sounded off the management to make certain disclosures about the company, which it did not do. Hence she decided to quit. She said in her resignation letter dated 13 February that her “conscience doesn’t permit” her to continue with the current position.

Karkare in his resignation letter dated 15 February, 2018 wrote: “Sir, recently my wife has undergone a major surgery called Hemicolectomy at Lilavati Hospital. The post-operation recovery is not up to the expected level. This has resulted in the restriction on me carrying responsibilities as CFO, and will be very difficult for me in future…sir, taking the above factor in consideration, I would like to request you to relinquish me from the responsibilities of CFO of the company,” he added. — IANS

Read more here

More on ‘Operation clean money’, an I-T report on Nirav Modi’s Rs 90 crores dupe a day after demonetisation

CBI tells CVC that the PNB fraud was a systemic failure “at multiple levels”

#PNBScam: After meeting with PNB and Finance Ministry officials Central Vigilance Commission also had a meeting with CBI officials, CBI told CVC that it was a system failure at multiple levels.

— ANI (@ANI) February 19, 2018

AIBEA urges govt to step in and keep top management ​out of PNB scam, says attempts being made to dilute magnitude of fraud 

The government should step into the ongoing PNB fraud case and keep out top management and officials until the probe is complete and accountability fixed, bank union AIBEA demanded on Monday. The impression is being given that only lower-level officials were involved, it added.

“What is sauce for the goose must be for the gander too. While we do not support the wrong-doers at the lower level, the impression is given that only the lower level officials and staff are responsible. Why such a haste and hurry to suspend them?” the All India Bank Employees’ Association (AIBEA) said in a strongly-worded letter issued on Monday.

Attempts are being made to dilute the magnitude of the fraud as a one-bank-one-branch-two-employees fraud. Such huge frauds cannot be committed in a simple way that a branch official would give an LoU for Rs 11,400 crore in a period of 6 or 7 years without anyone knowing about it, AIBEA General Secretary CH Venkatachalam said.

AIBEA said fraud has raised a number of questions on technology issues, supervision, monitoring, audit and internal control besides the role of RBI in the whole episode. — PTI

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.

‘Compulsive liar’ Mehul Choksi should have been caught 2 years ago, says ex-Gitanjali Gems MD Santosh Srivastava
​

Santosh Srivastava, who was managing director for four years and vice-president for two years of Gitanjali Gems, calls himself a whistleblower. It was after working there for six years that he decided to resign, citing the ‘unethical’ manner of working by his boss and founder of the company, Mehul Choksi. He would fudge accounts, the inventory would show less than what was being declared, among other things.

Srivastava speaks clearly with anger creeping in when he recalls that the ‘money owed to the country is Rs 11,400 crore’ which could have been much lesser if the government agencies Enforcement Directorate, Economic Offences Wing (EOW) and others had taken action when he contacted them with letters pointing out the anomalies in the firm.

How Nirav Modi circumvented demonetisation 

News18 reports that Nirav Modi allegedly helped high profile clients exchange unaccounted cash worth over Rs 90 crores a day after 8 November, 2016, the day when the demonetisation initiative was announced. The report adds that “dubious” sales to around 5,200 people were backdated to duck sales during demonetisation. 

#BREAKING How Nirav Modi mocked DeMo move: Sources say, Jeweller helped high profile clients exchange unaccounted cash worth 90 cr on a single day after Nov 8, 2016. Dubious sales to 5200 persons on a single day after DeMo. They backdated sales vouchers to duck sales during DeMo pic.twitter.com/qvPCJU1qJH

— News18 (@CNNnews18) February 19, 2018

Enforcement Directorate raids being conducted in Lucknow, Noida and Ghaziabad in connection with the Nirav Modi scam case, ANI reports. ED also conducted raids at a Gitanjali and a Nakshatra showroom in Muzaffarpur.

CBI removes the seal from Punjab National Bank’s Brady Road branch in Mumbai, reports PTI. It was sealed this morning to prevent possible tampering.

CVC to issue fresh guidelines to all banks in light of PNB scam

The Central Vigilance Commission (CVC) says it is not satisfied by statements given to it by PNB officials, reports CNN News18. The commission adds it will issue fresh guidelines to all banks in light of the Punjab National Bank fraud case.

ED Director to take over probe into PNB scam

ED Director Karnal Singh has reached Mumbai to take over the probe into the Punjab National Bank fraud case, reports Moneycontrol . The report adds that the Enforcement Directorate might also issue Letters of Rogatory to Hong Kong and other nations where they suspect that funds were diverted

Santosh Srivastava, a former employee of Mehul Choksi tells ANI that Choksi ​told him to “shut up and do his job” when he pointed out huge discrepancies in books of accounts around 2012 

Around 2012-13 I observed there were huge discrepancies in the books of accounts & physical things, I raised these with #MehulChoksi but I was told to shut up & do my job, in fact the language was tu apna kaam kar salary le aur nikal: Santosh Srivastava, former employee of Choksi pic.twitter.com/VHaZtbanhF

— ANI (@ANI) February 19, 2018

News18 reports that I-T reports against Mehul Choksi reveal that apart from the Punjab National Bank, he duped over 18 companies between 2010 and 2017

A timeline of how the Rs 11,400-crore scam involving Nirav Modi unfolded

Firstpost takes a look at the events that unfolded since 16 January when the Punjab National Bank first found out about the fraudulent transactions in what has now become the largest banking scam in Indian history.

PNB scam: story so far
Infogram

Petitioner Vaibhav Khuraniya says the PNB scam started back in 2011-2012 and those investigative agencies had been informed about the fraud 

Petitioner Vaibhav Khuraniya spoke to ANI, saying that the “drama” of the Punjab National Bank case had begun back in 2013. He said that had agencies like CBI, SEBI, ED and others been vigilant back then, diamond merchant Nirav Modi might not have escaped. He also told ANI that he suspected that Nirav “bribed his way out” of the case. “The company duped and stole our stock worth Rs 80 lakh,” Khuraniya said about the damages he faced due to the fraud. 

We had invested in #Gitanjali & met #MehulChoksi in the process. We opened a store, within 1-2 months we realised that the company is in bad shape. Our store was shut down within 3-4 months. The company duped us & stole our stock worth Rs 80 Lakh: Vaibhav Khuraniya, Petitioner pic.twitter.com/8I5DXQ47re

— ANI UP/Uttarakhand (@ANINewsUP) February 19, 2018

We complained to police but nothing happened. We went to court following which FIR was registered. Court proceedings are underway. Amidst all this he filed notice in High Court to quash the FIR. So he was provided an interim protection & fled: V Khuraniya, Petitioner #PNBFraud pic.twitter.com/NWMjsSxht9

— ANI UP/Uttarakhand (@ANINewsUP) February 19, 2018

The drama had begun in 2013 & fraud started back in 2011-12. We had informed CBI, SEBI, EOW, ED, had they been alert on time he wouldn't have escaped. However we had this intuition that he is bribing his way out & matter isn't reaching to higher authority: Petitioner #PNBFraud pic.twitter.com/X5rso6E6nc

— ANI UP/Uttarakhand (@ANINewsUP) February 19, 2018

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.

Enforcement Directorate team reaches residence of former Allahabad Bank director Dinesh Dubey, ANI reports

#Vadodara: ED team reaches residence of former Allahabad Bank director Dinesh Dubey who had alleged that loan was given to Gitanjali Gems in 2013 despite his dissent note #PNBFraud pic.twitter.com/vHmR4IGleh

— ANI (@ANI) February 19, 2018

PNB shares tank over 7 percent; market capitalisation drops by Rs 10,781 crores in four days 

Shares of Punjab National Bank (PNB) tumbled over 7 percent on Monday, extending the fall for a fourth straight session following the Rs 11,400-crore fraud at one its Mumbai branches.

The stock opened lower and slumped further 7.16 percent to its 52-week low of Rs 116.65 on BSE At NSE, shares of the company dived 6.77 percent to hit a one-year low of Rs 117.05.

In four trading sessions, the stock has lost nearly 28 percent and suffered an erosion of Rs 10,781.12 crore from its market capitalisation. — PTI

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

Enforcement Directorate (ED) sleuths are examining details of over 250 shell firms linked to Nirav Modi, his brother and Mehul Choksi, which they suspect were used to move ill-gotten financial assets after they defrauded state-owned Punjab National Bank of Rs 11,360 crore. These ghost entities, sources said, allegedly acted like a sleeper cell to launder money in India and abroad.

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.

Read full article here

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.

Read full report here

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. 

#EXCLUSIVE -- CNN-News18 has accessed details of LoUs issues in #BigBankScam; FIR states 8 LoUs were issued. But 150 LoUs were issued to Nirav Modi | @SubhajitSG with more details. #EndBankLoot | original input: @manojkumargupta pic.twitter.com/JyeLwtcHSU

— News18 (@CNNnews18) February 19, 2018

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

The Shiv Sena on Sunday attacked Prime Minister Narendra Modi over the multi-crore-rupee Punjab National Bank (PNB) scam and alleged that diamond czar Nirav Modi, who is at the centre of the scandal, had been a “partner” of the BJP and helped it collect funds for elections.

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

Celebrity jeweller and prime accused in the alleged Rs 11,400-crore Punjab National Bank fraud Nirav Modi will be represented by advocate Vijay Aggarwal in the courts, said media reports on Monday. Aggarwal has previously represented a number of accused in the 2G spectrum allocation scam case.

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

#EXCLUSIVE -- Started writing to agencies from 2015. If agencies had taken cognizance, we could've save a lot of money: Santosh Srivastava, former aide of Mehul Choksi. #EndBankLoot #BigBankScam pic.twitter.com/JYRIvuJYcT

— News18 (@CNNnews18) February 19, 2018

WATCH: Srivastava says he was threatened by Choksi

#EXCLUSIVE -- They filed a fake complaint against me. They tried to close out businesses : Santosh Srivastava, former aide of Mehul Choksi. #EndBankLoot #BigBankScam pic.twitter.com/cB8EF7JzeM

— News18 (@CNNnews18) February 19, 2018

‘They have cheated Indian public,’ says Santosh Srivastava

#EXCLUSIVE -- These people have cheated the Indian public. They have a lot of things to hide, which is why they are running away: Santosh Srivastava, former aide of Mehul Choksi. #EndBankLoot #BigBankScam pic.twitter.com/IweJ3pnZ0K

— News18 (@CNNnews18) February 19, 2018

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

“Congress attack on govt over PNB scam will boomerang,” says Prakash Javadekar

Union minister Prakash Javadekar said the Congress’s attack on the government over the Punjab National Bank scam would boomerang and alleged that the party had destroyed banking systems when it was in power.

The BJP leader claimed the Congress was frustrated as it had got no chance to level allegations of corruption during the NDA government’s current tenure. 

“It doesn’t suit the party to cry foul over the fraud because it started in 2011 under the UPA’s nose. The fraud is a testimony that the UPA destroyed banking systems,” Javadekar told reporters in Mumbai. — PTI

Indian banks may take more than $3 billion hit from Punjab National Bank fraud, reports tax department 

Indian banks could take a hit of at least $2.7 billion from loans and corporate guarantees provided to Punjab National Bank in a $1.77 billion fraud case, the tax department said on Saturday.

As of March 2017, banks had extended loans and guarantees worth Rs 176.32 billion rupees to companies tied to billionaire jeweller Nirav Modi and his uncle Mehul Choksi, the tax department said in a note seen by Reuters.

But the total hit to Indian banks “may well exceed” that amount the department said in its note. —Reuters

Congress to seek a joint parliamentary committee probe into the Punjab National Bank fraud case after talks with Opposition parties**, reports News18**

“Instead of daily media briefing by flotsam and jetsam what we require is Finance Secretary to address a media conference on the PNB scam,” BJP leader Subramanian Swamy says about the PNB fraud case 

Instead of daily media briefing by flotsam and jetsam what we require is Finance Secretary to address a media conference on the PNB scam

— Subramanian Swamy (@Swamy39) February 17, 2018

Visuals of NCP protests against Nirav Modi in Mumbai 

या घोटाळ्याला पीएनबी व्यवस्थापनाबरोबरच सरकारही जबाबदार आहे. भ्रष्टाचारमुक्त भारताची भाषा करायची आणि घोटाळेखोर नीरव मोदीला बाजूला बसवायचे, असा प्रकार पंतप्रधान मोदी करीत आहेत. त्यांनी या दुटप्पीपणाचा जवाब दिलाच पाहिजे. @NCPspeaks @supriya_sule #NiravModiScam #BhagGayaModi pic.twitter.com/usxafU3lBD

— Anand Paranjpe (@paranjpe_anand) February 17, 2018

NCP protests outside Punjab National Bank’s Brady House branch in Mumbai 

The Mumbai unit of the Nationalist Congress Party staged a protest outside the Brady House branch of the Punjab National Bank in south Mumbai’s Horniman Circle area in connection with the Rs 11,400 crore scam that has rocked the bank.

The protest, led by Mumbai NCP vice-president Ashok Dhatrak, wanted an assurance from bank officials that the money of ordinary depositors was safe in the wake of the fraud. 

The party’s state spokesperson Clyde Castro said that its functionaries were not allowed to meet bank officials, adding that the party shouted slogans against the bank as well as diamond businessman Nirav Modi who is at the centre of the scam. He said that Dhatrak, who led the protests, and five others who participated, had accounts with the Brady House branch of the PNB. — PTI

“Bank scams exposed recently has shown the culture of crony capitalism…The list of LoUs sums up to 367 that were issued under BJP govt. Why didn’t the prime minister or RBI take action based on these alarming transactions?” Congress spokesperson Randeep Surjewala said at Congress Steering Committee’s first meet 

The Bank Scams exposed recently has shown the culture of crony capitalism. PM has shown zero action in bringing back black money and curtailing corruption. The govt has shown zero concern of swindled public funds: @rssurjewala

— Congress Live (@INCIndiaLive) February 17, 2018

Congress Steering Committee calls upon PM on these issues of national interest-
1. PM should tell the nation how a fraud of such magnitude escaped govt's audit
2. Reasons for failure of banking sector and @FinMinIndia

: @rssurjewala

— Congress Live (@INCIndiaLive) February 17, 2018

We are releasing the list of LoUs issued to Nirav Modi.

All these LoUs are dated to 2017-18: @rssurjewala #ChhotaModi pic.twitter.com/TevZCdGU2Y

— Congress Live (@INCIndiaLive) February 17, 2018

The list of LoUs sums up to 367 that were issued under BJP govt. Why didn't the PM or RBI take action based on these alarming transactions?: @rssurjewala #ChhotaModi

— Congress Live (@INCIndiaLive) February 17, 2018

“The prime minister through his actions has destroyed the financial system of this country. He has taken money from people’s pockets and put it into the banking sector. And now his friends and cronies are stealing it from the banking sector,” Rahul Gandhi said about Narendra Modi in relation to the Punjab National Bank fraud 

The Prime Minister through his actions has destroyed the financial system of this country. He has taken money from people’s pockets and put it into the banking sector. And now his friends and cronies are stealing it from the banking sector: Congress President Rahul Gandhi pic.twitter.com/FbVwDtz89E

— Congress (@INCIndia) February 17, 2018

Manoj Kharat was just a clerk and typed letters under pressure from Gokulnath Shetty, says lawyer

“The court has sent them (the officials) under 14 days police custody. Manoj Kharat was just a clerk and typed letters under pressure from Gokulnath Shetty. He has no role in the case, we’ll file bail application,” Kudrat Sheikh, lawyer of Manoj Kharat says to ANI

The Court sent them under 14 days police custody. Manoj Kharat was just a clerk & typed letter under pressure from Gokulnath Shetty. He has no role in the case, we'll file bail application: Kudrat Sheikh, lawyer of Manoj Kharat #PNBFraudCase pic.twitter.com/N9FVfBq0ju

— ANI (@ANI) February 17, 2018

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.

Banks make commoners pay for small amounts but turn blind eye to big scams

It would be safe to submit that for the layman the huge numbers of the money swiped from the Punjab National Bank and the skulduggery involved are mystifying. For most of us, banks are hostile and intimidating self-righteous institutions designed to destroy our comfort zones.

To us, figures like Rs 114 billion and Rs 11,000 crore being swindled mean absolutely nothing. These are the same banks that call us at 0600 hours to say that our credit card payment in overdue by one day and if we do not pay they will destroy us and our families. At this very moment, there are roughly 30 million credit card owners in the country with one in four having defaulted and waking up every morning in the red. Nearly three times that number are debit cards.

These plastic cuffs have been liberally handed over to customers through slick and sinister bank advertising packaged as the sun in their lives but in actuality are the chains of financial enslavement.

The prime minister will have to come forward and provide answer, Rahul Gandhi says about the Nirav Modi scam 

This Rs 22,000 Crore scam cannot have been done without a high level protection. It must have been known by the people in government beforehand otherwise it is not possible. PM will have to come forward and answer questions: Rahul Gandhi #PNBFraudCase pic.twitter.com/tPDTpxBa7D

— ANI (@ANI) February 17, 2018

Congress leader Abhishek Manu Singhvi releases statement against Nirmala Sitharaman

My Statement on @nsitharaman 's ill considered, ignorant and patently false allegations #NiravModi pic.twitter.com/dFZZvGtmEj

— Abhishek Singhvi (@DrAMSinghvi) February 17, 2018

“Intend to take action against the sections of media who are spreading the news as well,” Abhishek Singhvi says 

“I intend to file a civil and defamation case against Defence Minister Nirmala Sitharaman and her colleagues who are spreading the defamatory allegations,” Congress leader Abhishek Manu Singhvi said in a press briefing in Kolkata. He said that he was in the middle of a wedding when he heard of this news and intends to take legal action against BJP leaders for the allegations charged against Singhvi and his family. “I also intend to take action against the sections of media who are spreading the same,” Singhvi added at the presser.

CBI to seek the custody of three Punjab National Bank officials for 14 days 

The Central Bureau of Investigation (CBI) to seek the custody of three Punjab National Bank officials for 14 days for further investigation on the grounds that some important documents are yet to be recovered, reports ANI. The report adds that the CBI wants to find the modus operandi of the crime and ascertain the exact magnitude of crime. 

In its application, the CBI claims that the fraud is estimated at Rs 6,000 crores, much more than Rs 280 crores reported by the bank. The agency also mentions that Nirav Modi’s firm’s authorised signatory and PNB employee Hemant Bhatt is not co-operating in the investigation, ANI reports.

BJP is spreading “false, defamatory, distasteful news” in relation to Punjab National Bank case, says Congress leader Abhishek Manu Singhvi 

BJP is spreading a false, defamatory, distasteful news through its Defence Minister & other ministers. What the Defence Minister said is false. Neither I, nor my wife or my children have any relation with #MehulChoksi or #NiravModi: Abhishek Singhvi, Congress pic.twitter.com/qsByERA28i

— ANI (@ANI) February 17, 2018

CBI pleads for maximum custody of the three arrested in the Punjab National Bank fraud case, reports News18

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

One minister speaks for another's ministry. The minister, who is supposed to speak, doesn't. The PM hasn't spoken yet. When will the FM and the PM come clean on the Nirav Modi Scam? #ChhotaModi pic.twitter.com/rJ1LMsBQop

— Congress (@INCIndia) February 17, 2018

Shiv Sena fires salvo against BJP 

The Shiv Sena said in stinging editorials in the party mouthpieces ‘Saamana’ and ‘Dopahar Ka Saamana’ on Saturday that the Punjab National Bank fraud case “lays hollow” Prime Minister Modi’s famed slogan -— Na Khaunga_, Na Khane Dunga_.

“We want to know how he managed to turn up with the group of industrialists who met PM in Davos when a complaint against him had already been lodged by PNB? Perhaps, if his Aadhaar Card had been linked to the bank accounts, this could have been clear,” the Sena said, in another jibe. The tragedy is that the common man cannot get hospital treatment or even a funeral without an Aadhaar Card, but a man like Nirav Modi could siphon off Rs 11,500 crore from a bank without an Aadhaar Card, it pointed out.

During the 2014 elections, many rich industrialists stood behind the BJP, but with this scam their characters are laid bare, while the tall claims of a “transparent and corruption-free government” have been blown to tatters in the past four years, it said. “In contrast, poor farmers who cannot repay loans of Rs 100-500 are forced to commit suicides and their lands are seized, but the industrialists who have committed a dacoity of over Rs 150,000-crore on the country are scott free with the blessings of the government,” the Sena said sharply.

The country is being run on advertisements and image-building for which crores of rupees are being spent, but when a person like (ex-RBI Governor) Raghuram Rajan spoke about the loot perpetrated in the country, he was shunted out. “Now, install only Nirav Modi as the RBI Governor to finish off the country,” the Sena signed off. — IANS

“Sensationalism, ignorance and falsehood has exceeded all limits in this irresponsible charge,” Abhishek Singhvi continues his criticism against the BJP 

4 .I repeat
1) neither I nor any member of my family has any interest in or relation to #NiravModi or his companies.
2) His company was a tenant in some commercial property owned by our family company.
3)This tenancy ended in Dec 2017.

— Abhishek Singhvi (@DrAMSinghvi) February 17, 2018

5.4) None of us have anything to do even remotely with geetanjali company, firestone or any other business of #NiravModi

Sensationalism, ignorance and falsehood has exceeded all limits in this irresponsible charge.

— Abhishek Singhvi (@DrAMSinghvi) February 17, 2018

Enforcement Directorate conducts raids at a Nakshatra jewellers showroom of Gitanjali Group in Bhopal, Madhya Pradesh

Madhya Pradesh: Enforcement Directorate (ED) conducting raids at a Nakshatra jewellers showroom of Gitanjali Group in Bhopal #PNBScam pic.twitter.com/s6odSCzPWU

— ANI (@ANI) February 17, 2018

“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 

1.@BJP4India / nda cheap sense of politics has reached ludicrous and ridiculous proportions. Neither My wife, sons nor me have anything whatsoever to do with Gitanjali or #NiravModi companies.

— Abhishek Singhvi (@DrAMSinghvi) February 17, 2018

2. #NiravModi’s company was a tenant of a kamla mills property owned by Adwait holdings in which my wife and sons are a director. Adwait holdings owns a commercial property at Parel, as it does elsewhere, which was rented by firestone many years ago.

— Abhishek Singhvi (@DrAMSinghvi) February 17, 2018

3. Neither adwait nor my family has any interest with modi or Firestone. Last August firestone gave notice to quit tenancy and vacated parel kamla mills premises in December 2017.

— Abhishek Singhvi (@DrAMSinghvi) February 17, 2018

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

3 Punjab National Bank officials arrested by CBI today produced before Special CBI Court in Mumbai #PNBFraudCase pic.twitter.com/UVaLVe7B7d

— ANI (@ANI) February 17, 2018

Abhishek Singhvi’s son denies allegations made by Nirmala Sitharaman

​

Allegations are a “falsehood being spread by BJP,” Avishkar Singhvi, the son of Congress leader Abhishek Manu Singhvi tells Times Now. “There is no shareholding, no connection to Nirav Modi,” Avishkar added. 

It is a falsehood being spread by BJP. Nirav Modi was a mere tenant in one of our properties which he has vacated in last July. There is no shareholding, no connection, says Avishkar Singhvi, son of Abhishek Singhvi in conversation with @scribe_prashant #UPAChoksiFiles pic.twitter.com/lgL63btQdm

— TIMES NOW (@TimesNow) February 17, 2018

Suspension of 18 bank officials is not enough, role of higher-ups must be probed

So far, the state-owned Punjab National Bank (PNB), embroiled in the alleged Rs 11,360 crore Nirav Modi scam , has suspended 18 officials whom it found responsible for supervisory lapses. The managing director of the bank Sunil Mehta said the bank has been suffering from some illness since 2011, and now a surgery is being carried out to remove the cancer.

By sacking 18 employees, have Mehta and the PNB been able to fix responsibility? Of course not. As one of the whistleblowers Dinesh Dubey pointed out, the malaise runs deep in the banking system, and the suspension of junior and mid-level employees is just another distraction. Has the government been proactive in directing the Reserve Bank of India (RBI) and the banks involved in this daylight robbery to take action aimed at bringing the top level to justice?

Full analysis here

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. 

Nirmala Sitharaman & her colleagues are liable to civil & criminal defamation for making ignorant & patently false allegations. I reserve my rights to take all such appropriate legal action against the latter & all parts of media which carry such allegations: Abhishek Singhvi pic.twitter.com/yqQGFjhwmC

— ANI (@ANI) February 17, 2018

Will file defamation suit against Nirmala Sitharaman, says Abhishek Singhvi 

Congress leader Abhishek Manu Singhvi says that he will file a defamation suit against defence minister Nirmala Sitharaman for her accusations against him in relation to the Punjab National Bank fraud case, reports Times Now. He added that he will address a press conference in Kolkata at 5.30 pm.

Sitharaman had said that Fire Star Diamond, a company that Nirav Modi runs, had taken a property which belongs to Advait Holding Ltd on lease. She added that Anita Singhvi was one of the shareholders from 2002. “You know who’s wife she is,”  Sitharaman had said at a press conference. “And also has Avishkar Manas Singhvi, possibly his son. But wife of one of the senior Congress leaders is here as a property shareholder, she is a director by designation,” she said, associating Abhishek Singhvi to the PNB fraud case.

Abhishek Singhvi, Cong speaks to TIMES NOW's @mayukhrghosh | Threatens to sue Defence Minister Nirmala Sitharaman pic.twitter.com/O8VqyyYXml

— TIMES NOW (@TimesNow) February 17, 2018

Visuals of raid by Enforcement Directorate officials at a Gitanjali Gems store in Durgapur, West Bengal

#PNBFraudCase: Visuals of Raid by ED officials at a #GitanjaliGems store in Durgapur, #WestBengal. pic.twitter.com/gYOKk7WGy4

— ANI (@ANI) February 17, 2018

The Income Tax department freezes 23 bank accounts of Gitanjali. The department has also seized a Gitanjali building in Jaipur, reports News18

‘Make Nirav Modi RBI Governor,’ Shiv Sena taunts BJP in Saamana editorial

Taunting ruling ally Bharatiya Janata Party, the Shiv Sena on Saturday said absconding scamster Nirav Modi “should be made Reserve Bank of India Governor to finish off the country”. Referring to the Punjab National Bank (PNB) fraud which came to light this week, the Sena said it is “clear that Nirav Modi and his family had fled” the country early last month.

“However, just recently (last week of January), this gentleman was seen and photographed with Prime Minister Narendra Modi in Davos (Switzerland),” the Sena said in stinging editorials in the party mouthpieces ‘Saamana’ and ‘Dopahar Ka Saamana’ on Saturday.

Nirav was a sympathizer of the BJP and played a leading role in collecting funds for it during the elections, it added. “However, we are not implying that he managed to loot the (PNB) bank with the blessings of BJP leaders or that a share of it (loot) even went to the party coffers. But, Nirav always strived for the BJP’s financial prosperity and helped it win elections with the mountains of cash he built,” the Sena said sarcastically.

The country is being run on advertisements and image-building for which crores of rupees are being spent, but when a person like (ex-RBI Governor) Raghuram Rajan spoke about the loot perpetrated in the country, he was shunted out. “Now, install only Nirav Modi as the RBI Governor to finish off the country,” the Sena signed off. —IANS

The Indian Banking Association to hold a meeting with chiefs of PSU banks via video conferencing in Mumbai on Saturday, reports ANI 

Indian Banking Association will hold meeting with Chiefs of all the PSU banks through video conferencing from its headquarters in Mumbai later today: Sources #PNBFraudCase

— ANI (@ANI) February 17, 2018

Earlier Congress used to benefit from scams, now BJP does, says Arvind Kejriwal

Delhi Chief Minister Arvind Kejriwal on Saturday said that earlier, the Congress used to benefit from scams and now it is the BJP that benefits from them and added that this is the reason why the BJP never sends a Congress member to the jail.

In a tweet, the chief minister said that the Punjab National Bank “scam” started in 2011 and was going on till now. “BJP is putting the blame on Congress and Congress on BJP. But the truth is that all scams during Congress’ time are still going on. Earlier, Congress used to make money, now from all those scams BJP makes money. This is the reason why BJP has till today not sent any Congress member to jail,” tweeted Kejriwal. — IANS

PNB scam 2011 में चालू हुआ, आज तक चल रहा है। भाजपा cong पर आरोप लगा रही है और cong भाजपा पर

सच ये है कि cong के समय के सारे घोटाले आज भी चल रहे हैं। पहले cong कमाती थी, अब उन्ही घोटालों से भाजपा कमाती है। इसीलिए आज तक भाजपा ने किसी भी घोटाले में एक भी cong वाले को जेल नहीं भेजा

— Arvind Kejriwal (@ArvindKejriwal) February 17, 2018

CVC summons PNB management, finance ministry officials 

Following crackdowns by central probe agencies Enforcement Directorate (ED), Central Bureau of Investigation (CBI) and Income Tax (I-T) Department, another law enforcement agency has swung into action in the Punjab National Bank (PNB) fraud case, reports ANI . The Central Vigilance Commission (CVC) has summoned the PNB management and finance ministry officials to appear before it on 19 February.

The report states that the MD and CEO of Punjab National Bank, Sunil Mehta will appear before the body on Monday at 11 am. PNB’s Chief Vigilance Officer (CVO) Satish Kumar Nagpal will also join Mehta. The reports adds that the additional secretary, department of financial services will be present on behalf og the finance ministry.

Punjab National Bank fraud case hits equities’ movement

The weekly trade in the Indian equity markets was almost flat. However, a slew of domestic developments like a $1.8 billion fraud reported by the Punjab National Bank (PNB) and release of major macroeconomic data impacted the movements of the two key equity indices, analysts said.

On a weekly basis, the barometer 30-scrip Sensitive Index (Sensex) rose a tad by 5 points or 0.01 percent to close at 34,010.76 points. The wider Nifty50 of the National Stock Exchange (NSE) closed trade at 10,452.30 points — a bit lower by 2.65 points or 0.02 percent from its previous week’s close.

“The truncated week began with a gap-up opening on Monday; however, bulls failed to keep the momentum and eventually ended the week on lower note as the sentiments got further dented by a $1.77 billion fraud reported by the PNB earlier this week,” D.K. Aggarwal, Chairman and Managing Director of SMC Investments and Advisors, told IANS.

PNB shares started to decline after the bank detected a multi-crore fraud case and authorities blamed billionaire diamond trader Nirav Modi for the fraud along with wife Ami, brother Nishal and maternal uncle and business partner Mehul Choksi.

The bank’s shares plunged drastically following the news — over 9 percent — along with the stocks of Choksi-promoted jewellery company Gitanjali Gems, which plunged almost 20 percent. —IANS

Despite the clear link with them, Congress party has the audacity to point fingers at BJP: Nirmala Sitharaman 

“In this mega banking scam, there are enough and more facts in our hands. With these facts, we and the media wants to ask questions to the Congress party and better educate the people of India regarding the scam,” BJP leader Nirmala Sitharaman said at a press conference. “Despite the clear link with them, Congress party has the audacity to point fingers at BJP,” she exclaimed, adding that the “entire might” of the government has been invoked to pin the culprit Nirav Modi in the fraud case.

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. 

Fire star diamond international pvt ltd. is one of the companies of Nirav Modi. They have acquired it from Advait Holdings and one of the shareholders of it is Anita Singhvi since 2002: Defence Minister Nirmala Sithraman on #PNBFraudCase pic.twitter.com/50rK2oWzkK

— ANI (@ANI) February 17, 2018

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

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#GitanjaliGems was suspended for 6 months from doing business on NSE in 2013. On September 13, 2013, Rahul Gandhi attended a promotional event of this jewellery group: Defence Minister Nirmala Sitharaman on #PNBFraudCase pic.twitter.com/Djk45rZYjm

— ANI (@ANI) February 17, 2018

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

The CBI has said that a majority of the Letters of Understanding (LoUs) in the Punjab National Bank fraud were either issued or were renewed in the bank in 2017-18, The Indian Express reported. 

The agency said that many old LoUs too were renewed in 2017. Nirav Modi and his relatives were rolling over the LoU money by getting them renewed, added the report.

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.

Nirav Modi is close to Prime Minister Narendra Modi, says Congress 

Kapil Sibal alleged that Nirav Modi is close to the prime minister. He said that crony capitalism has been institutionalised by the government. 

What was PMO doing when #BigBankScam was happening? Finance Ministry and PMO are aware that this country is being looted: Kapil Sibal, Congress pic.twitter.com/N1hy4gTCB6

— News18 (@CNNnews18) February 17, 2018