PNB fraud LIVE: ED raids at 35 locations in 11 states, total seizure amounts to Rs 5,700 crore

PNB fraud LIVE: ED raids at 35 locations in 11 states, total seizure amounts to Rs 5,700 crore

Former Allahabad Bank Director Dinesh Dubey told India Today, "I had asked the management to first recover the previous loan from Gitanjali Gem before releasing fresh loan, but I was told this needed to be done order to stop NPAs and to run banks."

The Ministry of External Affairs on Friday suspended the passports of diamantaire Nirav Modi and his uncle Mehul Choksi after the advice of Enforcement Directorate. The passports have been suspended for a period of four weeks. The duo have been asked to respond within a week as to why their passports should not be impounded or revoked under the Passports Act 1967.

The investigation agencies, banks, and now Interpol (International Criminal Police Organisation) - all agencies and institutions have tightened the noose around billionaire diamantaire Nirav Modi, who's at the heart of the Rs 11,400-crore 'fraud' detected at Punjab National Bank's (PNB) Mumbai branch. The first complaint against Nirav Modi's company was filed on January 29, but he and his family had already fled the country on January 1.

Now that the 'fraud' is out in the open, the PNB has fired its 18 employees, and the government has promised not to "spare anyone". The Enforcement Directorate (ED) and the Central Bureau of Investigation (CBI) have raided several properties of Nirav Modi and his alleged accomplices, including his family members and business partner Mehul Choksi, the owner of diamond jewellery brand Gitanjali Gems, and have sealed diamond, gold, jewellery, and precious stones worth over Rs 5,100 crore. Though Nirav Modi has reportedly assured the PNB authorities to repay the entire money, he has been asked to come up with a concrete plan.   

10.23pm: Nirav Modi, who left India about over a month ago along with his family, is living in a posh hotel in New York's South Central Park, reports Mirror Now. Reports suggest he may be living there with his family. 

9.21pm: The CBI Says PNB complaint to it said that Mehul Choksi and his companies caused a loss of Rs 4,886 crore to the bank, reports CNBC-TV 18.

8.15pm: The Reserve Bank of India says it has directed Punjab National Bank (PNB) to meet its commitments under the Letter of Undertaking (LOU) to other banks. "RBI denies having given any such instructions," says the statement.

8.00pm: "The fraud in PNB is a case of operational risk arising on account of delinquent behaviour by one or more employees of the bank and failure of internal controls. The RBI has already undertaken a supervisory assessment of control systems in PNB, and will take appropriate supervisory action," says the RBI.

7.38pm: The ED registers another case against Nirav Modi on Friday. Both Nirav Modi and Mehul Choksi summoned by the ED to appear before its Mumbai Office on 23rd February, reports ANI
Total locations raided: 35
Searches held in states: 11
Total seizure: Rs 5,700 crore

7.35pm: After today's searches, total seizure from Nirav Modi's property amounts to Rs 5,700 crore, reports India Today

7.21pm: AAP leader and Delhi Chief Minister Arvind Kejriwal has asked the Modi government to give specific timeline to bring back Vijay Mallya and Nirav Modi to India.

6.56pm: Jewellery traders fear that after the Rs 11,400-crore bank fraud involving billionaire Nirav Modi, the banks would now be more cautious, which would hurt their credit flow, reports Firstpost. They urged in light of the fraud, the entire industry should not be branded as 'risky' industry.

6.10pm: The Income Tax (I-T) officials issues fresh notice to Nirav Modi.

5.33pm: Nirav Modi's passport has been suspended, he can't go anywhere from the place he is right now. "Woh jis country mein hain wahi rahenge, passport suspend hone ke baad woh kahi nahi ja sakte," says MEA spokesperson Raveesh Kumar.

5.29pm: Former Banking Secretary Rajiv Takru says he met ex-Allahabad Bank Director Dinesh Dubey only once in his life. "I met this person only once in my life. He had come to my office to resign in 2013. Reason behind resignation was that he was unhappy over something. I accepted his resignation. I have never spoken to him," he told the ANI.

5.23pm: Nirav Modi was not a part of the PM Modi delegation to Davos, says Raveesh Kumar, MEA spokesperson, adding that the 'picture' that's being circulated was part of an informal session with CEOs who register for the event on their own. "It was an impromptu picture."

5.13pm: PNB Managing Director Sunil Mehta was the general manager at the Allahabad bank at the time when I highlighted the Mehul Choksi issue in 2013, former Allahabad Bank Director Dinesh Dubey tells India Today. "I had asked the management to first recover the previous loan from Gitanjali Gem before releasing fresh loan, but I was told this needed to be done order to stop NPAs and to run banks." 

5.00pm: Union Minister Prakash Javadekar says this is a fraud that happened during the UPA government. "This came to light when we decided to revive the entire banking system, after which this entire scam came to light. So, it's UPA's scam that has been brought to light by the BJP government."

4.50pm: The entire banking system had falled during the UPA. The scam remained under the carpet between 2011 and 2014, and it came to light after the NDA government tightened the banking norms, says Javadekar.

4.46pm: This is the 'banking fraud' not the 'government fraud'. We, on the other hand, allowed all the enforcement agencies to speed-up the investigation. We have also confiscated his properties worth over Rs 5,100 crore, says Javadekar.

4.45pm: Former CBI director AP Singh says it could take months and years to track Nirav Modi's overseas money trail.

4.41pm: Congress president Rahul Gandhi's official Twitter handle has defined the current 'bank fraud' through an equation, calling it an escape formula. 4.40pm: Dinesh says the scandal that started during the time of the UPA has not grown 50-times. "UPA Sarkar se chala hua aaya kand aaj NDA sarkar mein 10 guna, 50 guna badh gaya," says Dinesh Dubey.

4.33pm: According to ANI, former Allahabad Bank Director Dinesh Dubey says he had sent a dissent note against providing a loan to Gitanjali Gems to the government and the RBI in 2013 but to no avail.

4.28pm: Under the Modi government's new scheme 'Udaan', every scamster can fly undetected, says Congress. 4.22pm: The bank fraud scam could total around Rs 30,000 crore, says Congress spokesperson Randeep Surjewala.

4.02pm: Reserve Bank of India (RBI) data, which Reuters obtained through a right-to-information request, shows state-run banks have reported 8,670 "loan fraud" cases totalling Rs 612.6 billion ($9.58 billion) over the last five financial years up to March 31, 2017.

3.40pm: Actors Priyanka Chopra and Sidharth Malhotra have already cut ties with Nirav Modi, reports India Today. "My contract (with Nirav Modi's company) ended a year ago, so there's nothing to talk about it," says Sidharth Malhotra when asked about his association with the jewellery brand. 

3:24pm: Rs 4,900 crore unaccounted funds found during raids on Nirav Modi properties.

2.35pm: The ministry of external affairs has suspended the validity of Nirav Modi and Mehul Choksi's passports for four weeks.

2.00pm: The shares of Gitanjali Gems tank another 20% in morning trade after the detection of Punjab National Bank's Rs 11,400-crore fraud. Gitanjali Gems is one of the companies charged by investigating agencies for colluding with Nirav Modi in carrying out the fraud. 

Also read: Gitanjali Gems tanks 40% since February 14, Rs 300 crore in market cap wiped out

1.55pm: Finance Ministry sources tell ANI that over 50 companies with links to Nirav Modi will be raided by the CBI, the Enforcement Directorate (ED), and the Income Tax Department.

1.50pm: The FIR filed by CBI includes more 143 Letters of Undertaking (LoU) and 224 foreign letters of credit.

Some unanswered questions


Published on: Feb 16, 2018, 7:36 PM IST
Posted by: Manoj Sharma, Feb 16, 2018, 7:36 PM IST