Published: Mon, February 19, 2018
Business | By Max Garcia

Indian court sends three accused in PNB fraud case to police custody

Indian court sends three accused in PNB fraud case to police custody

The move is a part of investigation to unearth the trail of the $754.92 million (Rs 4,886.72 crore) funds raised by the Gitanjali group through foreign branches of Indian banks against Foreign Letter of Credits (FLCs) or Letters of Undertaking (LoU) given by PNB.

Meanwhile, the Indian Banks' Association (IBA) has also convened a meeting today to deliberate on the ramifications of the scam, which has also affected other banks including SBI, Union Bank, Allahabad Bank and Axis Bank.

The CBI in its remand application stated that the fraud is estimated at Rs 6,000 crore, which is much more than the Rs 280 crore reported by the bank. It can not be a coincidence that he suddenly escaped from the country after Rs 11,000 fraud.

Blaming the earlier UPA regime for messing up the banking sector, Mr Sitharaman said that the case reflects Congress "modus operandi" and claimed that the party and its "eminent leaders" are somehow associated with scams.

As per the sources, the agency also summoned Nirav Modi and another accused Mehul Choksi on February 23 at Mumbai office.

When asked about possible quid pro quo involved in the alleged scam perpetrated in collusion with billionaire diamond merchants Choksi and his nephew Nirav Modi and Punjab National Bank officials, they said they are still looking into it and it can not be clearly said if there were regular payments or not. The Prime Minister through his actions, has ruined the country and demonetised the economy.

The Income Tax Department started investigating into the billionaire's dealings after the government announced a multi-agency probe. It must have been known by the people in government beforehand otherwise it is not possible. The PM is "answerable to the nation as 90 per cent of the fraudulent transactions took place during his tenure", he said. As many as 29 properties and 105 accounts linked to Modi and his family have been attached.

"This matter has no affiliation, legal or otherwise with Firestar International Limited which is the flagship enterprise of Mr. Nirav Modi", the employees of his showroom on Madison Avenue said in a statement, according to the news channel.

Singhvi also threatened to slap civil and criminal defamation charges against Defence Minister and BJP leader Nirmala Sitharaman if she did not apologise for "false and malicious allegations".

The broadcaster said Modi, his wife, brother and uncle, Mehul Choksi, had left India before the scandal was discovered.

While the Central Bureau of Investigation (CBI) has registered two cases against Modi, the Enforcement Directorate (ED) has reportedly seized gold and diamond worth Rs 5,500 crores from the searches conducted at 17 properties of the diamond merchant across India.

Like this: