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BT Podcast: Three PNB Bank officials arrested for alleged involvement in Rs 11,400 crore bank fraud

BT Podcast: Three PNB Bank officials arrested for alleged involvement in Rs 11,400 crore bank fraud

The CBI on Monday evening arrested three senior officers of PNB for their alleged involvement in the Rs 11,400 crore fraud pertaining to Nirav Modi and his uncle Mehul Choksi.

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Three PNB Bank officials arrested for alleged involvement in Rs 11,400 crore bank fraud

The CBI on Monday evening arrested three senior officers of PNB for their alleged involvement in the Rs 11,400 crore fraud pertaining to Nirav Modi and his uncle Mehul Choksi. The three have been identified as Becchu Tiwari, Chief Manager, Forex who was direct supervisor of earlier arrested accused DY Manager Gokulnath Shetty and had full knowledge of the fraud happening at PNB's Brady House branch in Mumbai.

The second accused is Yashwant Joshi alias Abhay joshi who is a scale-II manager and was responsible of updating the SWIFT and CBS at the bank and took no action against Shetty while the third arrested accused has been identified as Prafull Sawant, a scale-I officer who was allegedly hand in gloves with Shetty and was responsible for checking SWIFT messages and preparing reports. As of now a total of six accused have been arrested in the case and many more arrests are likely to happen.

PNB expecting more claims from various banks for unpaid LOUs

The primary investigation by CBI and ED is going on to find out the actual amount lost by banks in the alleged fraud committed by Modi and Choksi. Investigation reveals that Modi and Choksi took LOUs further to fund the LOUs he had taken since 2011 and the trail now goes upto seven years back when it all started. As of now the case has been registered against the LOUs taken in 2017 which are around 151, of which the last one was issued on May 2 last year. The total LOUs amounts to Rs 3,312 crores in 2017.  Sources from PNB said that all these LOUs are unpaid LOUs.

ED and CBI and further digging into the PNB's audit reports and have found that auditors, concurrent audits by the bank failed to detect the scam as the LOUs were never mentioned into the bank's Core Banking system CBS.

CBI raids Rotomac Pens MD Vikram Kothari's house; loan default pegged around Rs 2,919 crore

As the security agencies grapple with the investigation pertaining to the PNB fraud case involving billionaire Nirav Modi, they now have another challenge to tackle - Rotomac Pens loan default case, which is pegged to be over Rs 2,919 crore. The CBI had registered an FIR under criminal breach of trust, diversion of funds, and violation of foreign exchange rules against Rotomac promoter Vikram Kothari for a loan default of Rs 456 crore on Sunday. As the inquiry intensifies, sources reveal Kothari had availed of loans worth 2,129 crore from seven different banks; Bank of Baroda, which lent Rs 456 crore to Rotomac, has already written off the loan as NPA(non-performing asset) in 2015. Kothari allegedly took the loan on the basis of fake export orders, fake suppliers, and fake bills, but Kothari's lawyer defends the Kanpur-based businessman saying the case 'is a loan default'.

The banks impacted by his loan default include Allahabad Bank, Bank of India and Union Bank of India among others. There were no arrests in the case yet, CBI spokesperson Abhishek Dayal categorically said. He said Kothari, his wife and his son are being examined by the CBI, which is conducting the searches. CBI has registered an FIR against Kothari.

India could be the first country to get Hyperloop One, Mumbai-Pune travel time to come down to 25 minutes

Five to seven years from now, Virgin Group founder Richard Branson plans to inaugurate a hyperloop linking the two cities that will cut down travel time to 25 minutes, or less. The icing on the cake is that you won't have to break a bank for the privilege.

What's a hyperloop? It's a revolutionary train service that envisions loading passengers and cargo into a pod that will accelerate gradually via electric propulsion through a low-pressure tube. According to Sir Richard Branson, Chairman of Virgin Hyperloop One, the company building this system, the pod will then quickly lift above the track using magnetic levitation and glide at airline speeds for long distances due to ultra-low aerodynamic drag. In fact, with speeds 2-3 times faster than high-speed rail, hyperloop can connect far-flung Indian cities as if they were metro stops.

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