About 30 Congress MLAs were suspended from the party after they protested over Chief Minister Raman Singh&#39;s invitation to Metals and Mining Corporation Rio Tinto for investing in the state.&nbsp;

The MLAs from the opposition party protested claiming that the corporation was blacklisted and has connections with Nirav Modi.&nbsp;

They said that the Australian Mining Giant Metals and Mining Corporation Rio Tinto is a close aide of the<a href="http://www.wionews.com/india-news/who-is-nirav-modi-the-billionaire-jeweller-at-centre-of-rs-11000-crore-scam-32970" target="_blank"> PNB scam accused Nirav Modi</a>.&nbsp;

The MLAs said that the chief minister invited the mining company for investing in the state during his visit to Australia last month.

They also demanded the resignation of the chief minister.&nbsp;

Chhattisgarh is ruled by Raman Singh led BJP government.&nbsp;

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The MLAs from the opposition party protested claiming that the corporation was blacklisted and has connections with Nirav Modi

About 30 Congress MLAs were suspended from the party after they protested over Chief Minister Raman Singh's invitation to Metals and Mining Corporation Rio Tinto for investing in the state. The MLAs from the opposition party protested claiming that the corporation was blacklisted and has connections with Nirav Modi. They said that the Australian Mining Giant Metals and Mining Corporation Rio Tinto is a close aide of the PNB scam accused Nirav Modi. The MLAs said that the chief minister invited the mining company for investing in the state during his visit to Australia last month. They also demanded the resignation of the chief minister. Chhattisgarh is ruled by Raman Singh led BJP government.

30 Congress MLAs suspended in Chhattisgarh over protest against CM's invitation to Australian Mining company

After billionaire diamantaire Nirav Modi, another defaulter Vikram Kothari, the promoter of Rotomac Pen, has also allegedly gone abroad after swindling Rs 800 crore from various public sector banks including Allahabad Bank, Bank of India and Union Bank of India, sources said.

The Kanpur-based company&#39;s owner had taken a loan of more than Rs 800 crore from over five state-owned banks.

Allahabad Bank, Bank of India, Bank of Baroda, Indian Overseas Bank and Union Bank of India compromised their rules to sanction loans to Rotomac, the sources said.

According to local media reports, the promoter said speculation of his fleeing the country is baseless.

&quot;I am a resident of Kanpur and I will stay in the city. However, I do have to travel to foriegn countries for business purposes,&quot; Kothari said.

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Rotomac Pens owner <a href="https://twitter.com/hashtag/VikramKothari?src=hash&amp;ref_src=twsrc%5Etfw">#VikramKothari</a> seen at the wedding of Jagran group owner Sanjeev Gupta&#39;s daughter&#39;s wedding in Kanpur yesterday <a href="https://t.co/QiYgL02Giq">pic.twitter.com/QiYgL02Giq</a>
&mdash; ANI UP (@ANINewsUP) <a href="https://twitter.com/ANINewsUP/status/965416441443946497?ref_src=twsrc%5Etfw">February 19, 2018</a></blockquote>
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Kothari took a loan of Rs 485 crore from Mumbai-based Union Bank of India and a loan of Rs 352 crore from Kolkata-based Allahabad Bank.

A year later, Kothari has reportedly not paid back either the interest or the loan.

Last year, Bank of Baroda (BoB), a consortium partner declared pen manufacturer Rotomac Global Pvt Ltd as &quot;wilful defaulter&quot;.

The company moved the Allahabad High Court seeking removal of its name from the list of wilful defaulter.

A division bench comprising Chief Justice D B Bhosle and Justice Yashwant Verma had passed the order on a petition filed by the company, contending that it has been wrongly declared a &quot;wilful defaulter&quot; by BoB despite having &quot;offered assets worth more than Rs 300 crore to the bank since the date of default&quot;.

Rotomac was declared a wilful defaulter vide an order dated February 27, 2017 passed by an authorised committee, as per the procedure laid down by the Reserve Bank of India.

The development comes less than a week after Punjab National Bank (PNB) had detected a $1.77 billion (about Rs 11,400 crore) scam wherein Modi allegedly acquired fraudulent letters of undertaking (LoUs) from a branch in Mumbai to secure overseas credit from other Indian lenders.

The PNB fraud pertains to issuance of fake LoUs to companies associated with billionaire jeweller Nirav Modi by errant PNB employees, which enabled these companies to raise buyers credit from international branches of other Indian lenders.

Last month, PNB had lodged an FIR with CBI stating that fraudulent LoUs worth Rs 280.7 crore were first issued on January 16. At the time, PNB had said it was digging into records to examine the magnitude of the fraud.

In the complaint, PNB had named three diamond firms - Diamonds R Us, Solar Exports and Stellar Diamonds - saying they had approached it on January 16 with a request for buyers credit for making payment to overseas suppliers.

&nbsp;

After billionaire diamantaire Nirav Modi, another defaulter Vikram Kothari, the promoter of Rotomac Pen, has also allegedly gone abroad after swindling Rs 800 crore from various public sector banks including Allahabad Bank, Bank of India and Union Bank of India, sources said

After billionaire diamantaire Nirav Modi, another defaulter Vikram Kothari, the promoter of Rotomac Pen, has also allegedly gone abroad after swindling Rs 800 crore from various public sector banks including Allahabad Bank, Bank of India and Union Bank of India, sources said. The Kanpur-based company's owner had taken a loan of more than Rs 800 crore from over five state-owned banks. Allahabad Bank, Bank of India, Bank of Baroda, Indian Overseas Bank and Union Bank of India compromised their rules to sanction loans to Rotomac, the sources said. According to local media reports, the promoter said speculation of his fleeing the country is baseless. "I am a resident of Kanpur and I will stay in the city. However, I do have to travel to foriegn countries for business purposes," Kothari said. Rotomac Pens owner #VikramKothari seen at the wedding of Jagran group owner Sanjeev Gupta's daughter's wedding in Kanpur yesterday pic.twitter.com/QiYgL02Giq — ANI UP (@ANINewsUP) February 19, 2018 × Kothari took a loan of Rs 485 crore from Mumbai-based Union Bank of India and a loan of Rs 352 crore from Kolkata-based Allahabad Bank. A year later, Kothari has reportedly not paid back either the interest or the loan. Last year, Bank of Baroda (BoB), a consortium partner declared pen manufacturer Rotomac Global Pvt Ltd as "wilful defaulter". The company moved the Allahabad High Court seeking removal of its name from the list of wilful defaulter. A division bench comprising Chief Justice D B Bhosle and Justice Yashwant Verma had passed the order on a petition filed by the company, contending that it has been wrongly declared a "wilful defaulter" by BoB despite having "offered assets worth more than Rs 300 crore to the bank since the date of default". Rotomac was declared a wilful defaulter vide an order dated February 27, 2017 passed by an authorised committee, as per the procedure laid down by the Reserve Bank of India. The development comes less than a week after Punjab National Bank (PNB) had detected a $1.77 billion (about Rs 11,400 crore) scam wherein Modi allegedly acquired fraudulent letters of undertaking (LoUs) from a branch in Mumbai to secure overseas credit from other Indian lenders. The PNB fraud pertains to issuance of fake LoUs to companies associated with billionaire jeweller Nirav Modi by errant PNB employees, which enabled these companies to raise buyers credit from international branches of other Indian lenders. Last month, PNB had lodged an FIR with CBI stating that fraudulent LoUs worth Rs 280.7 crore were first issued on January 16. At the time, PNB had said it was digging into records to examine the magnitude of the fraud. In the complaint, PNB had named three diamond firms - Diamonds R Us, Solar Exports and Stellar Diamonds - saying they had approached it on January 16 with a request for buyers credit for making payment to overseas suppliers.

Now, Rotomac Pen's Rs 800 crore defaulter flees country

Since the multi-crore Punjab National Bank &nbsp;(PNB) scam involving tainted diamond czar Nirav Modi came to light, Congress president Rahul Gandhi seized the opportunity and launched a repeated&nbsp;attack on the Modi-led BJP government saying that the scam of this magnitude 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, he said yesterday.&nbsp;

On Sunday, the Gandhi scion stepped up the attack on the ruling dispensation and questioned the silence of Prime Minister Narendra Modi and Finance Minister Arun Jaitley in the matter.

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PM Modi tells kids how to pass exams for 2 hrs, but won&#39;t speak for 2 mins on the 22,000Cr banking scam. 
 
Mr Jaitley is in hiding. 
 
Stop behaving as if you&#39;re guilty! Speak up. <a href="https://twitter.com/hashtag/ModiRobsIndia?src=hash&amp;ref_src=twsrc%5Etfw">#ModiRobsIndia</a>
&mdash; Office of RG (@OfficeOfRG) <a href="https://twitter.com/OfficeOfRG/status/965120267411337216?ref_src=twsrc%5Etfw">February 18, 2018</a></blockquote>
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PM tells kids how to pass exams for 2 hours, but won&#39;t&nbsp;speak for two minutes on the Rs 22,000 crore banking scam, he tweeted.

&#39;&#39;PM Modi tells kids how to pass exams for 2 hrs, but won&#39;t speak for 2 mins on the 22,000Cr banking scam,&#39;&#39; he tweeted.

Gandhi also accused Arun Jaitley of hiding. 
&nbsp; 
&#39;&#39;Mr Jaitley is in hiding,&#39;&#39; he tweeted and urged both the BJP leaders to speak on the issue.&nbsp;

Rahul Gandhi linked the PNB scam to demonetisation yesterday and said the PM Modi&rsquo;s decision to demonetise Rs 500 and Rs 1,000 currency notes, was the catalyst for the bank scam.&nbsp;

&ldquo;On that day, PM took the entire nation&rsquo;s money and put this into banks. Now, his friends and cronies have stolen that money from the banks,&rdquo; the Congress president said.

Continuing its crackdown on the scam, the Central Bureau of Investigation (CBI) on Saturday arrested three officials of &nbsp;Punjab National Bank in connection with the Rs 11300 crore scam.

The arrested officials include the then deputy manager of PNB Gokulnath Shetty, single window operator Manoj Kharat, and authorised signatory of the Nirav Modi Group of Firms Hemant Bhatt.&nbsp; 
&nbsp;

Gandhi scion stepped up the attack on the ruling dispensation on Sunday by taking to Twitter

Since the multi-crore Punjab National Bank (PNB) scam involving tainted diamond czar Nirav Modi came to light, Congress president Rahul Gandhi seized the opportunity and launched a repeated attack on the Modi-led BJP government saying that the scam of this magnitude 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, he said yesterday. On Sunday, the Gandhi scion stepped up the attack on the ruling dispensation and questioned the silence of Prime Minister Narendra Modi and Finance Minister Arun Jaitley in the matter. PM Modi tells kids how to pass exams for 2 hrs, but won't speak for 2 mins on the 22,000Cr banking scam. Mr Jaitley is in hiding. Stop behaving as if you're guilty! Speak up. #ModiRobsIndia — Office of RG (@OfficeOfRG) February 18, 2018 × PM tells kids how to pass exams for 2 hours, but won't speak for two minutes on the Rs 22,000 crore banking scam, he tweeted. ''PM Modi tells kids how to pass exams for 2 hrs, but won't speak for 2 mins on the 22,000Cr banking scam,'' he tweeted. Gandhi also accused Arun Jaitley of hiding. ''Mr Jaitley is in hiding,'' he tweeted and urged both the BJP leaders to speak on the issue. Rahul Gandhi linked the PNB scam to demonetisation yesterday and said the PM Modi’s decision to demonetise Rs 500 and Rs 1,000 currency notes, was the catalyst for the bank scam. “On that day, PM took the entire nation’s money and put this into banks. Now, his friends and cronies have stolen that money from the banks,” the Congress president said. Continuing its crackdown on the scam, the Central Bureau of Investigation (CBI) on Saturday arrested three officials of Punjab National Bank in connection with the Rs 11300 crore scam. The arrested officials include the then deputy manager of PNB Gokulnath Shetty, single window operator Manoj Kharat, and authorised signatory of the Nirav Modi Group of Firms Hemant Bhatt.

PM Modi won't speak, Arun Jaitley is in hiding, Rahul Gandhi steps up attack on BJP over PNB scam

At least 200 shell firms and &quot;benami&quot; assets have come under the scanner of the investigative agencies that are probing the Rs 11,400-crore alleged fraud at the Punjab National Bank (PNB), involving diamond czar Nirav Modi, his relative and business partner Mehul Choksi and others.

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The Enforcement Directorate (ED), which continued its searches against Modi, Choksi and their companies for the fourth day today, is also moving to attach at least two dozen immovable properties under the Prevention of Money Laundering Act (PMLA).

The ED today raided at least 45 premises, including jewellery showrooms and workshops, across the country.

&quot;As many as 29 properties -- of Modi, his family members and companies -- that have been provisionally attached by the Income Tax department, are being assessed by the ED under the PMLA. A few more assets will be attached soon under the anti-money laundering law,&quot; a senior ED official said.

He added that the ED and the I-T department had zeroed in on about 200 dummy or shell companies in the country and abroad that were being used to route or receive funds as part of the alleged fraud.

It is suspected that the shell firms were being used by the accused to launder money and create &quot;benami&quot; assets in the form of land, gold and precious stones, which is now being probed by the tax department.

Both the ED and the IT department had formed special teams to investigate the case, sources said.

The ED has seized diamonds, gold jewellery and other precious stones worth Rs 5,674 crore till now in the case.

The I-T department yesterday attached nine bank accounts of Gitanjali Gems, its promoter Mehul Choksi and others in connection with a tax evasion probe against them.

It had also attached 29 properties and 105 bank accounts of Modi, his family members and firms owned by them.

Modi, Choksi and others are being investigated by multiple probe agencies after it recently came to light, following a complaint by the PNB, that they allegedly cheated the nationalised bank to the tune of Rs 11,400 crore, with the purported involvement of a few employees of the bank.

The CBI is also looking into the matter.&nbsp;

The ED has seized diamonds, gold jewellery and other precious stones worth Rs 5,674 crore till now in the case.

At least 200 shell firms and "benami" assets have come under the scanner of the investigative agencies that are probing the Rs 11,400-crore alleged fraud at the Punjab National Bank (PNB), involving diamond czar Nirav Modi, his relative and business partner Mehul Choksi and others. × The Enforcement Directorate (ED), which continued its searches against Modi, Choksi and their companies for the fourth day today, is also moving to attach at least two dozen immovable properties under the Prevention of Money Laundering Act (PMLA). The ED today raided at least 45 premises, including jewellery showrooms and workshops, across the country. "As many as 29 properties -- of Modi, his family members and companies -- that have been provisionally attached by the Income Tax department, are being assessed by the ED under the PMLA. A few more assets will be attached soon under the anti-money laundering law," a senior ED official said. He added that the ED and the I-T department had zeroed in on about 200 dummy or shell companies in the country and abroad that were being used to route or receive funds as part of the alleged fraud. It is suspected that the shell firms were being used by the accused to launder money and create "benami" assets in the form of land, gold and precious stones, which is now being probed by the tax department. Both the ED and the IT department had formed special teams to investigate the case, sources said. The ED has seized diamonds, gold jewellery and other precious stones worth Rs 5,674 crore till now in the case. The I-T department yesterday attached nine bank accounts of Gitanjali Gems, its promoter Mehul Choksi and others in connection with a tax evasion probe against them. It had also attached 29 properties and 105 bank accounts of Modi, his family members and firms owned by them. Modi, Choksi and others are being investigated by multiple probe agencies after it recently came to light, following a complaint by the PNB, that they allegedly cheated the nationalised bank to the tune of Rs 11,400 crore, with the purported involvement of a few employees of the bank. The CBI is also looking into the matter.

PNB fraud: 200 shell firms, benami assets under ED, I-T dept scanner

Former Union Minister and senior Congress leader Kapil Sibal blamed the Finance Minister Arun Jaitley and the Prime Minister&#39;s Office (PMO) for the<a href="http://www.wionews.com/india-news/pnb-scam-fraud-came-to-light-due-to-alertness-of-nda-govt-says-union-minister-prakash-javadekar-33092" target="_blank">&nbsp;PNB Bank fraud</a>.

While addressing a press conference he said the Finance Ministry and the PMO&nbsp;were aware of the scam and they &quot;turned a blind eye&quot; to&nbsp;it.&nbsp;He said, &quot; they were aware that our country was being looted and they are aware even now&quot;.

He also asked the government to release the details of the people who are in debts in jewellery&nbsp;business.&nbsp;

Taking a jibe at the &quot; ease of doing business&quot;&nbsp; he&nbsp;said &quot;anyone can come and borrow loans from our banks and evade without repaying it. This is not the kind of ease of business that we want from our country&#39;&#39;.&nbsp;

He also blamed the Prime Minister for encouraging &#39;&#39;crony capitalism&#39;&#39; in the country and&nbsp;said that the PM institutionalised c<a href="http://www.wionews.com/india-news/pnb-scam-a-type-of-crony-capitalism-cpi-m-33028" target="_blank">rony capitalism</a>.&nbsp;

Hitting out at PM Modi&#39;s pakoda comment, Sibal said &quot; Our guard is very busy these days in giving advice to the people for making pakodas&nbsp;but while he is asleep the thief managed to slip away&quot;.

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Humaare desh ke jo chowkidar hain, woh pakode banaane ki salah de rahe hain. Aaj ki paristithi yeh hai ki chowkidar so raha hai aur chor bhaag gaya hai: Kapil Sibal, Congress. <a href="https://t.co/mPDsuy3NcX">pic.twitter.com/mPDsuy3NcX</a>
&mdash; ANI (@ANI) <a href="https://twitter.com/ANI/status/964758299139805184?ref_src=twsrc%5Etfw">February 17, 2018</a></blockquote>
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Sibal responded to the allegations on previous UPA government for&nbsp;PNB Bank fraud case and said that the credit given before 2014 was not outstanding.&nbsp;

While speaking on the<a href="http://www.wionews.com/india-news/former-allahabad-bank-director-says-he-resigned-as-he-was-pressured-to-give-loan-to-gitanjali-gems-33085" target="_blank"> resignation of the Former bank director</a>, Dinesh Dubey, Sibal said: &quot; Today anything can be made to say by the help of police, One should check his resignation letter to know the reality&quot;.

Sibal also assured that they will bring the reality of the case in case the&nbsp;NDA&nbsp;fails to do so.

While addressing a press conference he said the Finance Ministry and the PMO were aware of the scam and they 'turned a blind eye' to it

Former Union Minister and senior Congress leader Kapil Sibal blamed the Finance Minister Arun Jaitley and the Prime Minister's Office (PMO) for the PNB Bank fraud. While addressing a press conference he said the Finance Ministry and the PMO were aware of the scam and they "turned a blind eye" to it. He said, " they were aware that our country was being looted and they are aware even now". He also asked the government to release the details of the people who are in debts in jewellery business. Taking a jibe at the " ease of doing business" he said "anyone can come and borrow loans from our banks and evade without repaying it. This is not the kind of ease of business that we want from our country''. He also blamed the Prime Minister for encouraging ''crony capitalism'' in the country and said that the PM institutionalised crony capitalism. Hitting out at PM Modi's pakoda comment, Sibal said " Our guard is very busy these days in giving advice to the people for making pakodas but while he is asleep the thief managed to slip away". Humaare desh ke jo chowkidar hain, woh pakode banaane ki salah de rahe hain. Aaj ki paristithi yeh hai ki chowkidar so raha hai aur chor bhaag gaya hai: Kapil Sibal, Congress. pic.twitter.com/mPDsuy3NcX — ANI (@ANI) February 17, 2018 × Sibal responded to the allegations on previous UPA government for PNB Bank fraud case and said that the credit given before 2014 was not outstanding. While speaking on the resignation of the Former bank director, Dinesh Dubey, Sibal said: " Today anything can be made to say by the help of police, One should check his resignation letter to know the reality". Sibal also assured that they will bring the reality of the case in case the NDA fails to do so.

Kapil Sibal blames FM, PMO for PNB Bank fraud

Shiv Sena lashed out at the Bharatiya Janata Party on Saturday stating that the party should appoint absconding Nirav Modi as the RBI Governor &quot;to finish off the country&quot;.

Editorials in Shiv Sena&#39;s mouthpieces&nbsp;&#39;Saamana&#39; and &#39;Dopahar Ka Saamana&#39; made stinging remarks on the Punjab National Bank (PNB) fraud which came to light earlier this week.&nbsp;

The editorial pieces alleged that Nirav Modi fled the country earlier last month along with his family and was also seen with Prime Minister Narendra Modi at the Davos Summit.

The Sena clarified the fact that it wasn&#39;t alleging that the Bhartiya Janta Party or its leaders facilitated the &#39;loot&#39;, however, it did mention that Nirav Modi often batted for BJP&#39;s electoral wins.

&quot;We want to know how did he (Nirav) manage to turn up at the Davos event when a complaint against him had already been lodged by the PNB?&quot; the Sena noted in another jibe.

The editorial piece pointed out that Nirav Modi&#39;s bank accounts were not linked to Aadhaar. &quot;While a common man cannot get hospital treatment or even a funeral without an Aadhaar Card, bigshots like Nirav Modi loot crores from a bank without an Aadhaar Card,&quot; noted the editorial.&nbsp;

Nirav Modi, a diamond merchant who owns a global diamond jewellery house, is accused in the Rs 11,400 scam involving the Punjab National Bank.&nbsp;

Nirav Modi, a diamond merchant, is an accused in the Rs 11,400 scam involving the Punjab National Bank

Shiv Sena lashed out at the Bharatiya Janata Party on Saturday stating that the party should appoint absconding Nirav Modi as the RBI Governor "to finish off the country". Editorials in Shiv Sena's mouthpieces 'Saamana' and 'Dopahar Ka Saamana' made stinging remarks on the Punjab National Bank (PNB) fraud which came to light earlier this week. The editorial pieces alleged that Nirav Modi fled the country earlier last month along with his family and was also seen with Prime Minister Narendra Modi at the Davos Summit. The Sena clarified the fact that it wasn't alleging that the Bhartiya Janta Party or its leaders facilitated the 'loot', however, it did mention that Nirav Modi often batted for BJP's electoral wins. "We want to know how did he (Nirav) manage to turn up at the Davos event when a complaint against him had already been lodged by the PNB?" the Sena noted in another jibe. The editorial piece pointed out that Nirav Modi's bank accounts were not linked to Aadhaar. "While a common man cannot get hospital treatment or even a funeral without an Aadhaar Card, bigshots like Nirav Modi loot crores from a bank without an Aadhaar Card," noted the editorial. Nirav Modi, a diamond merchant who owns a global diamond jewellery house, is accused in the Rs 11,400 scam involving the Punjab National Bank.

'Make Nirav Modi RBI Governor,' Shiv Sena taunts BJP

After a major crackdown by Enforcement Directorate (ED), Central Bureau of Investigation (CBI) and Income Tax (IT) Department, one more law enforcement agency has swung into action in the Punjab National Bank (PNB) fraud case. The Central Vigilance Commission (CVC) summoned the PNB management and Finance Ministry officials to appear before it.

Top officials of PNB and the Finance Ministry have been asked to appear before the CVC on February 19.

CVC is an apex governmental body to address governmental corruption.

Sources have told that MD and CEO, Punjab National Bank, Sunil Mehta is likely to appear before CVC on Monday at 11 a.m.&nbsp;He will be accompanied by Chief Vigilance Officer (CVO) of PNB.

On behalf of the Ministry of Finance, additional secretary, department of financial services is likely to be present.

Sources have also revealed that CVO PNB is most likely to give a presentation to CVC about the fraud which has shaken the banking system.

Further, before going to CVC, top management of PNB and senior officials of department of financial services had a meeting through video conferencing yesterday, according to sources.

On Monday, CVC will review the vigilance monitoring system of PNB and decide the necessary course of action to be taken.

CVC is the fourth government agency after ED, CBI and IT department which has swung into action.

According to sources, the Indian Banking Association will also hold a meeting with the chiefs of all Public Sector Undertaking (PSU) banks through video conferencing from its headquarters in Mumbai later today.

For the unversed, Punjab National Bank detected a 1.77 billion dollars scam in which jeweler Nirav Modi acquired fraudulent letters of undertaking from one of its branches for overseas credit from other Indian lenders.

The scam was started in 2011 and was detected in the third week of January this year, after which the PNB officials reported it to the concerned agencies.

Meanwhile, the PNB filed a second complaint with the CBI on February 13.

The CBI had received the complaint from PNB on January 28 and a case was registered in the case on January 31. (ANI) 
&nbsp;

Sources have told ANI that MD and CEO, Punjab National Bank, Sunil Mehta is likely to appear before CVC on Monday at 11am

After a major crackdown by Enforcement Directorate (ED), Central Bureau of Investigation (CBI) and Income Tax (IT) Department, one more law enforcement agency has swung into action in the Punjab National Bank (PNB) fraud case. The Central Vigilance Commission (CVC) summoned the PNB management and Finance Ministry officials to appear before it. Top officials of PNB and the Finance Ministry have been asked to appear before the CVC on February 19. CVC is an apex governmental body to address governmental corruption. Sources have told that MD and CEO, Punjab National Bank, Sunil Mehta is likely to appear before CVC on Monday at 11 a.m. He will be accompanied by Chief Vigilance Officer (CVO) of PNB. On behalf of the Ministry of Finance, additional secretary, department of financial services is likely to be present. Sources have also revealed that CVO PNB is most likely to give a presentation to CVC about the fraud which has shaken the banking system. Further, before going to CVC, top management of PNB and senior officials of department of financial services had a meeting through video conferencing yesterday, according to sources. On Monday, CVC will review the vigilance monitoring system of PNB and decide the necessary course of action to be taken. CVC is the fourth government agency after ED, CBI and IT department which has swung into action. According to sources, the Indian Banking Association will also hold a meeting with the chiefs of all Public Sector Undertaking (PSU) banks through video conferencing from its headquarters in Mumbai later today. For the unversed, Punjab National Bank detected a 1.77 billion dollars scam in which jeweler Nirav Modi acquired fraudulent letters of undertaking from one of its branches for overseas credit from other Indian lenders. The scam was started in 2011 and was detected in the third week of January this year, after which the PNB officials reported it to the concerned agencies. Meanwhile, the PNB filed a second complaint with the CBI on February 13. The CBI had received the complaint from PNB on January 28 and a case was registered in the case on January 31. (ANI)

PNB scam: CVC summons PNB, finance ministry officials

In further trouble for beleaguered jewellery designer Nirav Modi, the Income Tax Department today provisionally attached 29 properties and 105 bank accounts of the diamond merchant, his family and firms as part of its tax evasion probe, officials said.

The department also slapped the new anti-black money act against him for allegedly holding illegal assets abroad. The asset is suspected to be in Singapore.

The Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015&nbsp;deals with cases of overseas illegal assets, which till recently were probed under the Income Tax Act, 1961.

The new legislation has provisions for a steep 120 per cent tax and penalty on undisclosed foreign assets and income, besides carrying a jail term of up to 10 years.&nbsp; 
 
Also&nbsp;read - <a href="http://www.wionews.com/india-news/no-official-is-in-touch-with-nirav-modi-mea-33117">No official is in touch with Nirav Modi: MEA</a>

The taxman also filed a charge sheet against Modi before a special court in Mumbai under sections 276 C (1) [wilful attempt to evade tax], 277 A (false statement in verification), 278 B (offences by companies) and 278 E (presumption as to culpable mental state) of the Income Tax Act, 1961. The court will take up the case on February 27.

Also read: <a href="http://www.wionews.com/india-news/passports-of-nirav-modi-mehul-choksi-suspended-mea-gives-one-week-to-respond-33087">Passports of Nirav Modi, Mehul Choksi suspended, MEA gives one week to respond</a>

Tax sleuths also pasted attachment notices at immovable properties of Modi, his wife Ami and his firms located in Mumbai, Surat, Jaipur and Delhi. In the Maharashtra capital, the properties that have been provisionally attached pending assessment, include Modi&#39;s premises in the posh Peddar road area, Worli, Bandra, Lower Parel and Opera House.

A total of 105 bank accounts of Modi, his family and companies have also been attached, they said. &quot;These attachments have been made keeping in view the huge demand which is likely to be raised in the assessment proceedings which are underway in the case of Nirav Modi, his family members and group concerns,&quot; an I-T report, accessed by PTI, said. The I-T had first raided Modi in January last year on charges of alleged tax evasion.

Nirav Modi and others are accused in a Rs 11,400-crore fraud involving Punjab National Bank. The accused are believed to have left the country.

The department also slapped the new anti-black money act against him

In further trouble for beleaguered jewellery designer Nirav Modi, the Income Tax Department today provisionally attached 29 properties and 105 bank accounts of the diamond merchant, his family and firms as part of its tax evasion probe, officials said. The department also slapped the new anti-black money act against him for allegedly holding illegal assets abroad. The asset is suspected to be in Singapore. The Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 deals with cases of overseas illegal assets, which till recently were probed under the Income Tax Act, 1961. The new legislation has provisions for a steep 120 per cent tax and penalty on undisclosed foreign assets and income, besides carrying a jail term of up to 10 years. Also read - No official is in touch with Nirav Modi: MEA The taxman also filed a charge sheet against Modi before a special court in Mumbai under sections 276 C (1) [wilful attempt to evade tax], 277 A (false statement in verification), 278 B (offences by companies) and 278 E (presumption as to culpable mental state) of the Income Tax Act, 1961. The court will take up the case on February 27. Also read: Passports of Nirav Modi, Mehul Choksi suspended, MEA gives one week to respond Tax sleuths also pasted attachment notices at immovable properties of Modi, his wife Ami and his firms located in Mumbai, Surat, Jaipur and Delhi. In the Maharashtra capital, the properties that have been provisionally attached pending assessment, include Modi's premises in the posh Peddar road area, Worli, Bandra, Lower Parel and Opera House. A total of 105 bank accounts of Modi, his family and companies have also been attached, they said. "These attachments have been made keeping in view the huge demand which is likely to be raised in the assessment proceedings which are underway in the case of Nirav Modi, his family members and group concerns," an I-T report, accessed by PTI, said. The I-T had first raided Modi in January last year on charges of alleged tax evasion. Nirav Modi and others are accused in a Rs 11,400-crore fraud involving Punjab National Bank. The accused are believed to have left the country.

More trouble for Nirav Modi; I-T attaches 29 properties, 105 bank accounts

The BJP on Saturday alleged that the multi-crore PNB scam involving billionaire jewellery designer Nirav Modi happened during the UPA rule and the Congress was spreading lies.

The BJP fielded Defence Minister Nirmala Sitharaman to counter the Congress charge that the scam took place in 2017 under the Modi government when the letters of understanding were signed by the Punjab National Bank in favour of Nirav Modi.

She said Nirav Modi may have been able to run away from the country, but the government is taking action against him.

&quot;We are not conspiring to help scamsters flee the country, the BJP government is catching them instead,&quot; she told reporters.

She accused the Congress of spreading lies on the issue.

Sitharaman also alleged that it was Congress leader Rahul Gandhi who attended a promotional event hosted by Nirav Modi.

She also cited the example of a government director of Allahabad Bank, who in 2013 had raised objections to the financial restructuring of Gitanjali Gems, saying he was asked to resign and his dissent was not even recorded.

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Fire Star Diamond I&#39;nal Pvt Ltd is one of the companies that <a href="https://twitter.com/hashtag/NiravModi?src=hash&amp;ref_src=twsrc%5Etfw">#NiravModi</a> runs. They&#39;ve taken on lease property which belongs to Advait Holding Ltd in Trade Point Building in Lower Parel. From 2002 Anita Singhvi is one of the shareholders. You know who&#39;s wife she&#39;s:Defence Minister <a href="https://t.co/irTcVza1PT">pic.twitter.com/irTcVza1PT</a>
&mdash; ANI (@ANI) <a href="https://twitter.com/ANI/status/964808562341040130?ref_src=twsrc%5Etfw">February 17, 2018</a></blockquote>
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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: Nirmala Sitharaman, Defence Minister <a href="https://twitter.com/hashtag/PNBFraudCase?src=hash&amp;ref_src=twsrc%5Etfw">#PNBFraudCase</a> <a href="https://twitter.com/hashtag/NiravModi?src=hash&amp;ref_src=twsrc%5Etfw">#NiravModi</a> <a href="https://t.co/0dwT4gynmE">pic.twitter.com/0dwT4gynmE</a>
&mdash; ANI (@ANI) <a href="https://twitter.com/ANI/status/964808565465780231?ref_src=twsrc%5Etfw">February 17, 2018</a></blockquote>
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Responding to&nbsp;Sitharaman&#39;s allegations, Congress&#39;Abhishek Singhvi said&nbsp;Nirmala Sitharaman and&nbsp;her colleagues are liable for civil and criminal defamation for making ignorant and patently false allegations.

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I intend to file a civil and defamation case against the Defence Minister Nirmala Sitharaman and her colleagues who are spreading the defamatory allegations, I also intend to take action against the sections of media who are spreading the same: Abhishek Singhvi, Congress <a href="https://t.co/oaRjbQEwSW">pic.twitter.com/oaRjbQEwSW</a>
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&quot;I reserve my rights to take all such appropriate legal action against the latter and all parts of media which carry such allegations,&#39;&#39; Singhvi added.

Adwait Holding owns a commercial property at Parel, as it does elsewhere, which was rented by Firestone many years ago. Neither Adwait nor my family has any interest with Modi or Firestone. Firestone vacated Parel Kamla Mills premises in December 2017, Singhvi added.&nbsp;

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Neither my wife, sons nor me have anything whatsoever to do with <a href="https://twitter.com/hashtag/Gitanjali?src=hash&amp;ref_src=twsrc%5Etfw">#Gitanjali</a> or <a href="https://twitter.com/hashtag/NiravModi?src=hash&amp;ref_src=twsrc%5Etfw">#NiravModi</a> companies. The company was a tenant of a Kamla Mills property owned by Adwait holdings in which my wife &amp; sons are a director: Abhishek Singhvi
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Central probe agencies CBI and ED yesterday continued their crackdown in the Rs 11,400-crore bank fraud case involving Nirav Modi and family, registering a fresh case against his maternal uncle Mehul Choksi,

The CBI has alleged that the new FIR pertains to 143 LOUs worth over Rs 4,886 crore fraudulently issued to three companies of Choksi -- Gitanjali Gems, Nakshatra and Gili -- during the period 2017-18, officials said.

The agency had earlier registered a separate case involving Rs 280-crore fraud, which has now been expanded to cover LoUs worth Rs 6,498 crore issued to accused companies of Nirav Modi and Choksi.

An LoU is a letter of comfort issued by one bank to branches of other banks, based on which foreign branches offer credit to buyers.

Sitharaman alleged that it was Congress leader Rahul Gandhi who attended a promotional event hosted by Nirav Modi.

The BJP on Saturday alleged that the multi-crore PNB scam involving billionaire jewellery designer Nirav Modi happened during the UPA rule and the Congress was spreading lies. The BJP fielded Defence Minister Nirmala Sitharaman to counter the Congress charge that the scam took place in 2017 under the Modi government when the letters of understanding were signed by the Punjab National Bank in favour of Nirav Modi. She said Nirav Modi may have been able to run away from the country, but the government is taking action against him. "We are not conspiring to help scamsters flee the country, the BJP government is catching them instead," she told reporters. She accused the Congress of spreading lies on the issue. Sitharaman also alleged that it was Congress leader Rahul Gandhi who attended a promotional event hosted by Nirav Modi. She also cited the example of a government director of Allahabad Bank, who in 2013 had raised objections to the financial restructuring of Gitanjali Gems, saying he was asked to resign and his dissent was not even recorded. Fire Star Diamond I'nal Pvt Ltd is one of the companies that #NiravModi runs. They've taken on lease property which belongs to Advait Holding Ltd in Trade Point Building in Lower Parel. From 2002 Anita Singhvi is one of the shareholders. You know who's wife she's:Defence Minister pic.twitter.com/irTcVza1PT — ANI (@ANI) February 17, 2018 × 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: Nirmala Sitharaman, Defence Minister #PNBFraudCase #NiravModi pic.twitter.com/0dwT4gynmE — ANI (@ANI) February 17, 2018 × Responding to Sitharaman's allegations, Congress'Abhishek Singhvi said Nirmala Sitharaman and her colleagues are liable for civil and criminal defamation for making ignorant and patently false allegations. I intend to file a civil and defamation case against the Defence Minister Nirmala Sitharaman and her colleagues who are spreading the defamatory allegations, I also intend to take action against the sections of media who are spreading the same: Abhishek Singhvi, Congress pic.twitter.com/oaRjbQEwSW — ANI (@ANI) February 17, 2018 × "I reserve my rights to take all such appropriate legal action against the latter and all parts of media which carry such allegations,'' Singhvi added. Adwait Holding owns a commercial property at Parel, as it does elsewhere, which was rented by Firestone many years ago. Neither Adwait nor my family has any interest with Modi or Firestone. Firestone vacated Parel Kamla Mills premises in December 2017, Singhvi added. Neither my wife, sons nor me have anything whatsoever to do with #Gitanjali or #NiravModi companies. The company was a tenant of a Kamla Mills property owned by Adwait holdings in which my wife & sons are a director: Abhishek Singhvi — ANI (@ANI) February 17, 2018 × Central probe agencies CBI and ED yesterday continued their crackdown in the Rs 11,400-crore bank fraud case involving Nirav Modi and family, registering a fresh case against his maternal uncle Mehul Choksi, The CBI has alleged that the new FIR pertains to 143 LOUs worth over Rs 4,886 crore fraudulently issued to three companies of Choksi -- Gitanjali Gems, Nakshatra and Gili -- during the period 2017-18, officials said. The agency had earlier registered a separate case involving Rs 280-crore fraud, which has now been expanded to cover LoUs worth Rs 6,498 crore issued to accused companies of Nirav Modi and Choksi. An LoU is a letter of comfort issued by one bank to branches of other banks, based on which foreign branches offer credit to buyers.

PNB scam: Sitharaman drags in Abhishek Singhvi, who says 'I'll sue you'

Congress president Rahul Gandhi on Saturday launched a blistering attack on Prime Minister Narendra Modi, pinning the Punjab National Bank scam on him and said he is answerable to the nation as 90 per cent of the fraudulent transactions had taken place during his tenure.&nbsp;

&ldquo;This is a 22,000 crore scam,&rdquo; he said, nearly doubling the fraud amount of Rs 11,400 crore that was revealed by the PNB to the Security Exchange Board of India on Wednesday. The bank has since then accepted that the fraud amount could be higher but has not disclosed the exact figure.&nbsp;

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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 <a href="https://twitter.com/hashtag/PNBFraudCase?src=hash&amp;ref_src=twsrc%5Etfw">#PNBFraudCase</a> <a href="https://t.co/tPDTpxBa7D">pic.twitter.com/tPDTpxBa7D</a>
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Nirav Modi managed&nbsp;to take away Rs 22000 crore but&nbsp;PM is not able to tell us how he managed this scam, he added.

The scam of this magnitude cannot have been done without a high-level protection, Gandhi said and added that it must have been known by the people in government beforehand otherwise it is not possible.&nbsp;

PM will have to come forward and answer these questions, he added.&nbsp;

Linking the scam to PM Modi&rsquo;s decision to demonetise Rs 500 and Rs 1,000 currency notes, he said that the scam had started on November 8, 2016.

&ldquo;On that day, PM&nbsp;took the entire nation&rsquo;s money and put this into banks. Now, his friends and cronies have stolen that money from the banks,&rdquo; the Congress president said.

On allegations against the UPA government, he said that this is done to divert the attention from the real issue.

This Rs 22,000 Crore scam cannot have been done without a high-level protection, Gandhi said

Congress president Rahul Gandhi on Saturday launched a blistering attack on Prime Minister Narendra Modi, pinning the Punjab National Bank scam on him and said he is answerable to the nation as 90 per cent of the fraudulent transactions had taken place during his tenure. “This is a 22,000 crore scam,” he said, nearly doubling the fraud amount of Rs 11,400 crore that was revealed by the PNB to the Security Exchange Board of India on Wednesday. The bank has since then accepted that the fraud amount could be higher but has not disclosed the exact figure. 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 × Nirav Modi managed to take away Rs 22000 crore but PM is not able to tell us how he managed this scam, he added. The scam of this magnitude cannot have been done without a high-level protection, Gandhi said and added that it must have been known by the people in government beforehand otherwise it is not possible. PM will have to come forward and answer these questions, he added. Linking the scam to PM Modi’s decision to demonetise Rs 500 and Rs 1,000 currency notes, he said that the scam had started on November 8, 2016. “On that day, PM took the entire nation’s money and put this into banks. Now, his friends and cronies have stolen that money from the banks,” the Congress president said. On allegations against the UPA government, he said that this is done to divert the attention from the real issue.

Demonetisation a catalyst for Modi's friends and cronies to loot Indian banks: Rahul Gandhi

The external affairs ministry on Friday suspended with immediate effect the passports of diamantaire Nirav Modi and his business partner Mehul Choksi for four weeks.

The ministry gave them one week to respond why their passports should not be revoked.

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Woh jis country mein hain wahi rahenge, passport suspend hone ke baad woh kahi nahi ja sakte: Raveesh Kumar,MEA <a href="https://twitter.com/hashtag/NiravModi?src=hash&amp;ref_src=twsrc%5Etfw">#NiravModi</a> <a href="https://twitter.com/hashtag/PNBFraudCase?src=hash&amp;ref_src=twsrc%5Etfw">#PNBFraudCase</a> <a href="https://t.co/0B5USe0mCN">pic.twitter.com/0B5USe0mCN</a>
&mdash; ANI (@ANI) <a href="https://twitter.com/ANI/status/964468317716131840?ref_src=twsrc%5Etfw">February 16, 2018</a></blockquote>
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Also read: <a href="http://www.wionews.com/india-news/pnb-scam-this-is-how-nirav-modi-planned-his-safe-exit-from-india-33071" target="_blank">This is how Nirav Modi planned his safe exit from India</a>

Also read:&nbsp;<a href="http://www.wionews.com/india-news/after-ed-raids-on-nirav-modis-showrooms-cbi-targets-mehul-choksis-gitanjali-group-33063">After ED raids on Nirav Modi&#39;s showrooms, CBI targets Mehul Choksi&#39;s Gitanjali Group</a>

&quot;If they fail to respond within the stipulated time it will be assumed that they have no response to offer and the MEA will go ahead with the revocation,&quot; the ministry said in a statement.

Announcing the suspension, the MEA statement said,&quot;On the advice of the Enforcement Directorate, the passport issuing authority in the MEA has today suspended the validity of passports of Nirav Deepak Modi and Mehul Chinubhai Choksi with immediate effect for a period of four weeks u/s 10(A) of the Passports Act 1967.&quot;

They have been asked to respond within one week why their passports should not be impounded or revoked under Section 10 (3) (c) of the Passports Act 1967, it said.

The Central Bureau of Investigation (CBI) and the ED yesterday moved separate applications to the external affairs ministry seeking the revocation Nirav Modi&#39;s passport as well as that of his maternal uncle and his business partner Mehul Choksi, the promoter of Gitanjali jewellery chain. Both are accused in the Rs 280 crore bank fraud case.

The ministry gave them one week to respond why their passports should not be revoked

The external affairs ministry on Friday suspended with immediate effect the passports of diamantaire Nirav Modi and his business partner Mehul Choksi for four weeks. The ministry gave them one week to respond why their passports should not be revoked. Woh jis country mein hain wahi rahenge, passport suspend hone ke baad woh kahi nahi ja sakte: Raveesh Kumar,MEA #NiravModi #PNBFraudCase pic.twitter.com/0B5USe0mCN — ANI (@ANI) February 16, 2018 × Also read: This is how Nirav Modi planned his safe exit from India Also read: After ED raids on Nirav Modi's showrooms, CBI targets Mehul Choksi's Gitanjali Group "If they fail to respond within the stipulated time it will be assumed that they have no response to offer and the MEA will go ahead with the revocation," the ministry said in a statement. Announcing the suspension, the MEA statement said,"On the advice of the Enforcement Directorate, the passport issuing authority in the MEA has today suspended the validity of passports of Nirav Deepak Modi and Mehul Chinubhai Choksi with immediate effect for a period of four weeks u/s 10(A) of the Passports Act 1967." They have been asked to respond within one week why their passports should not be impounded or revoked under Section 10 (3) (c) of the Passports Act 1967, it said. The Central Bureau of Investigation (CBI) and the ED yesterday moved separate applications to the external affairs ministry seeking the revocation Nirav Modi's passport as well as that of his maternal uncle and his business partner Mehul Choksi, the promoter of Gitanjali jewellery chain. Both are accused in the Rs 280 crore bank fraud case.

Passports of Nirav Modi, Mehul Choksi suspended, MEA gives one week to respond

A lookout notice was issued by the CBI against jeweller Nirav Modi and his associates last month in the <a href="http://www.wionews.com/india-news/pnb-scam-how-punjab-national-bank-fell-victim-to-countrys-biggest-bank-fraud-33009" target="_blank">PNB banking fraud </a>case but by then they had escaped from India.

Nirav Modi, who holds an Indian passport, left India on January 1, while his brother Nishal, a Belgian citizen, departed from the country on the same day. Modi&#39;s wife Ami, a US citizen, left on January 6 and his uncle and business partner <a href="http://www.wionews.com/india-news/after-ed-raids-on-nirav-modis-showrooms-cbi-targets-mehul-choksis-gitanjali-group-33063" target="_blank">Mehul Choksi, the promoter of Gitanjali jewellery chain</a>, left on January 4.

Here is the chronology of Nirav Modi&#39;s planned exit:&nbsp;

CBI sources said that Nirav Modi had already made plans to flee the country with his family well in advance as early as a year ago.

Nirav Modi was planning to leave country around his brother Neehal&#39;s wedding in December 2016.&nbsp;However, Demonetisation was announced right before this and then he had to postpone his plan.

In last one year Nirav Modi allegedly started parking all his money through multiple layers where he made transactions at inflated prices.&nbsp;

Some transactions are suspected to have been made&nbsp;with fictitious companies and are being scrutinized by the investigating agencies.

Specially transactions between India and 5 countries including USA, UK Malaysia, Singapore and China are being closely monitored.

Agencies suspect that funds were routed to different cities worldwide.&nbsp;

Firstly, funds were transferred from India to Macau, Beijing, Hongkong, Singapore, and Kuala Lumpur.Later from these cities to London.&nbsp;

And then from London, the funds moved to Hawaii, Las Vegas and New York before moving to his Swiss accounts.

Somewhere in December 2017, somebody from PNB (other than 2 main accused) tipped him off about the meeting held by PNB top officials and a complaint to be filed with CBI.

Upon learning about this, Nirav Modi made his final plan to flee post new year celebration. Knowing that if all of them leave together could lead to suspicion, they decided to leave one by one so that if one is held others are safe.

Sources claim Nirav was scared of leaving alone that he left with his brother Neeshal who is a Belgian citizen.

Once Nirav and Neeshal Modi sneaked out of the country,&nbsp;they alerted their uncle Mehul Choksi who reportedly left after three days. Meanwhile, Nirav Modi&#39;s wife Ami Modi stayed put in Mumbai to keep a close watch on what was happening in the investigation agency, bank and media circles. After two days, Modi&#39;s American citizen wife Ami also left the country along with her child. Thus, all 4 accused escaped in a span of a week&#39;s time.

About 3 weeks later, PNB officials submitted a written complaint to Bank Security &amp; Fraud Cell (BSFC) of CBI in Bandra Kurla Complex (BKC), Mumbai.

On receiving this complaint, CBI started recording the statement of the complainant bank authority and registered an&nbsp;FIR on 31st January.

Nirav Modi&#39;s priority was to safeguard the family members. However, by the last week of January 2018, he wanted to shift all expensive jewellery to New York through shipment but by then the case was registered and his plans were thwarted by the investigation agencies.&nbsp;

In last one year Nirav Modi allegedly started parking all his money through multiple layers where he made transactions at inflated prices

A lookout notice was issued by the CBI against jeweller Nirav Modi and his associates last month in the PNB banking fraud case but by then they had escaped from India. Nirav Modi, who holds an Indian passport, left India on January 1, while his brother Nishal, a Belgian citizen, departed from the country on the same day. Modi's wife Ami, a US citizen, left on January 6 and his uncle and business partner Mehul Choksi, the promoter of Gitanjali jewellery chain, left on January 4. Here is the chronology of Nirav Modi's planned exit: CBI sources said that Nirav Modi had already made plans to flee the country with his family well in advance as early as a year ago. Nirav Modi was planning to leave country around his brother Neehal's wedding in December 2016. However, Demonetisation was announced right before this and then he had to postpone his plan. In last one year Nirav Modi allegedly started parking all his money through multiple layers where he made transactions at inflated prices. Some transactions are suspected to have been made with fictitious companies and are being scrutinized by the investigating agencies. Specially transactions between India and 5 countries including USA, UK Malaysia, Singapore and China are being closely monitored. Agencies suspect that funds were routed to different cities worldwide. Firstly, funds were transferred from India to Macau, Beijing, Hongkong, Singapore, and Kuala Lumpur.Later from these cities to London. And then from London, the funds moved to Hawaii, Las Vegas and New York before moving to his Swiss accounts. Somewhere in December 2017, somebody from PNB (other than 2 main accused) tipped him off about the meeting held by PNB top officials and a complaint to be filed with CBI. Upon learning about this, Nirav Modi made his final plan to flee post new year celebration. Knowing that if all of them leave together could lead to suspicion, they decided to leave one by one so that if one is held others are safe. Sources claim Nirav was scared of leaving alone that he left with his brother Neeshal who is a Belgian citizen. Once Nirav and Neeshal Modi sneaked out of the country, they alerted their uncle Mehul Choksi who reportedly left after three days. Meanwhile, Nirav Modi's wife Ami Modi stayed put in Mumbai to keep a close watch on what was happening in the investigation agency, bank and media circles. After two days, Modi's American citizen wife Ami also left the country along with her child. Thus, all 4 accused escaped in a span of a week's time. About 3 weeks later, PNB officials submitted a written complaint to Bank Security & Fraud Cell (BSFC) of CBI in Bandra Kurla Complex (BKC), Mumbai. On receiving this complaint, CBI started recording the statement of the complainant bank authority and registered an FIR on 31st January. Nirav Modi's priority was to safeguard the family members. However, by the last week of January 2018, he wanted to shift all expensive jewellery to New York through shipment but by then the case was registered and his plans were thwarted by the investigation agencies.

This is how Nirav Modi planned his safe exit from India

After the Enforcement Directorate(ED) <a href="http://www.wionews.com/india-news/nirav-modi-row-punjab-national-bank-suspends-8-officers-33059">conducted nationwide searches against</a> Nirav Modi&#39;s showrooms, the Central Bureau of Investigation(CBI) today conducted searches in Maharashtra, Gujarat and Tamil Nadu in connection with Mehul Choksi&#39;s Gitanjali Group.&nbsp;

The CBI raids were conducted in Pune, Surat, Jaipur, Telangana and Coimbatore.

<a href="http://www.wionews.com/india-news/pnb-scam-interpol-notice-against-nirav-modi-33049">Mehul Choksi, the promoter Gitanjali </a>jewellery chain is the relative of Nirav Modi who&nbsp;allegedly defrauded PNB of Rs 11,400 crores.

Nirav Modi and Mehul Choksi have been asked to respond within one week on revocation of their passports.&nbsp;The ministry of external affairs said if the duo fail to respond within the stipulated time, their passports will be revoked.

The CBI today&nbsp;registered a fresh FIR against Gitanjali Gems and its promoter Mehul Choksi on basis of complaint from Punjab National Bank(PNB).

The ED has&nbsp;already issued summons to Choksi and Nirav Modi to appear before the agency.

Meanwhile, shares of Gitanjali Gems plunged another 20 per cent in morning trade after the company came under scanner in the PNB scam&nbsp;case.

The stock fell for the third straight session to hit 52-week low on both BSE and NSE. On BSE, the stock fell 19.94 per cent to a low of Rs 37.55.

On NSE, the stock cracked 19.98 per cent to trade at Rs 37.45.

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A day after registering money laundering case in connection with the cheating of Punjab National Bank (PNB) by billionaire jeweller Nirav Modi, the Enforcement Directorate on Thursday conducted raids at his residence and offices in Mumbai. (WION)
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Mehul Choksi, the promoter Gitanjali jewellery chain is the relative of Nirav Modi who is allegedly defrauded PNB of Rs 11,400 crores

After the Enforcement Directorate(ED) conducted nationwide searches against Nirav Modi's showrooms, the Central Bureau of Investigation(CBI) today conducted searches in Maharashtra, Gujarat and Tamil Nadu in connection with Mehul Choksi's Gitanjali Group. The CBI raids were conducted in Pune, Surat, Jaipur, Telangana and Coimbatore. Mehul Choksi, the promoter Gitanjali jewellery chain is the relative of Nirav Modi who allegedly defrauded PNB of Rs 11,400 crores. Nirav Modi and Mehul Choksi have been asked to respond within one week on revocation of their passports. The ministry of external affairs said if the duo fail to respond within the stipulated time, their passports will be revoked. The CBI today registered a fresh FIR against Gitanjali Gems and its promoter Mehul Choksi on basis of complaint from Punjab National Bank(PNB). The ED has already issued summons to Choksi and Nirav Modi to appear before the agency. Meanwhile, shares of Gitanjali Gems plunged another 20 per cent in morning trade after the company came under scanner in the PNB scam case. The stock fell for the third straight session to hit 52-week low on both BSE and NSE. On BSE, the stock fell 19.94 per cent to a low of Rs 37.55. On NSE, the stock cracked 19.98 per cent to trade at Rs 37.45. A day after registering money laundering case in connection with the cheating of Punjab National Bank (PNB) by billionaire jeweller Nirav Modi, the Enforcement Directorate on Thursday conducted raids at his residence and offices in Mumbai. (WION) ×

After ED raids on Nirav Modi's showrooms, CBI targets Mehul Choksi's Gitanjali Group

The Interpol today issued a diffusion notice against billionaire jewellery designer <a href="http://www.wionews.com/india-news/who-is-nirav-modi-the-billionaire-jeweller-at-centre-of-rs-11000-crore-scam-32970">Nirav Modi</a>, in the centre of a Rs 11,400 scam involving the Punjab National Bank (PNB).

The notice has also been issued Nirav Modi&#39;s wife&nbsp;Ami Modi, his brother Nishal Modi and business partner Mehul Choksi. A diffusion notice is a request for cooperation or alert mechanism. It is used to request the arrest or location of an individual or additional information in relation to a police investigation.

The Enforcement Directorate today issued summons to Nirav Modi and his business partner Mehul Choksi in the PNB money laundering case, PTI quoted officials as saying.

Both Modi and Choksi were summoned under the Prevention of Money Laundering Act (PMLA) and asked to depose within a week&#39;s time, officials said. The notices were handed over to the directors of the firms of the two businessmen as they were not in the country.

The CBI today registered an FIR against Mehul Choksi&#39;s Gitanjali Group of companies on a February 13 complaint of Punjab National Bank.

Nirav Modi, <a href="http://www.wionews.com/india-news/pnb-scam-nirav-modi-left-india-on-january-1-say-officials-32966">who had left the country </a>on January 1, has been living in an&nbsp;apartment in New York&#39;s Manhattan, media reports said today.

Meanwhile, after almost 24 hours, <a href="http://www.wionews.com/india-news/ed-conducted-in-camera-raids-on-nirav-modis-showrooms-33027">raids continued</a> at Nirav Modi&#39;s boutique in the Kala Ghoda area of South Mumbai today.&nbsp;

On Thursday, the Enforcement Directorate had conducted searches in 17 premises across the country including Geetanjali Gems and seized stock of gold, diamond and precious stones worth Rs 5,100 crore.

&nbsp;Eight employees of the Punjab National Bank have been suspended taking the number of suspended employees to 18.

Nirav Modi left the country much before the Central Bureau of Investigation received a complaint from Punjab National Bank on January 29 about a Rs 280-crore fraud.

His brother Nishal, a Belgian citizen, also left the country on January 1, while wife Ami, a US citizen, and Mehul Choksi, the Indian promoter of Gitanjali jewellery chain, departed on January 6.

The Enforcement Direcotorate has written to the Ministry of External Affairs asking that the passports of Nirav Modi, his wife Ami Modi, and Mehul Choksi, the Indian promoter of Gitanjali Jewels, be revoked.&nbsp;

The Enforcement Directorate on Thursday <a href="http://www.wionews.com/india-news/pnb-scam-enforcement-directorate-registers-money-laundering-case-against-billionaire-nirav-modi-32924">registered a Prevention of Money Laundering Act</a> (PMLA) case against the billionaire jeweller and others for allegedly cheating the Punjab National Bank (PNB) of Rs 280 crores.&nbsp;

The case was registered on the basis of a CBI First Information Report (FIR).

The CBI has issued a look out circular against all the four after registering the first FIR against them.

Nirav Modi was booked by the CBI, along with wife, brother and Choksi on January 31, for allegedly cheating the state-run PNB to the tune of Rs 280 crore.

The Punjab National Bank said on Tuesday that it had detected a Rs 11,400 crore (USD 1.7 billion) scam in which the billionaire jeweller allegedly acquired fraudulent letters of undertaking from one of its branches for overseas credit from other Indian lenders.

The scam started in 2011 and was detected in the third week of January this year.

(With inputs from agencies)

 
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Nirav Modi, who had left the country on January 1, has been living in an apartment in New York's Manhattan, media reports said today.

The Interpol today issued a diffusion notice against billionaire jewellery designer Nirav Modi, in the centre of a Rs 11,400 scam involving the Punjab National Bank (PNB). The notice has also been issued Nirav Modi's wife Ami Modi, his brother Nishal Modi and business partner Mehul Choksi. A diffusion notice is a request for cooperation or alert mechanism. It is used to request the arrest or location of an individual or additional information in relation to a police investigation. The Enforcement Directorate today issued summons to Nirav Modi and his business partner Mehul Choksi in the PNB money laundering case, PTI quoted officials as saying. Both Modi and Choksi were summoned under the Prevention of Money Laundering Act (PMLA) and asked to depose within a week's time, officials said. The notices were handed over to the directors of the firms of the two businessmen as they were not in the country. The CBI today registered an FIR against Mehul Choksi's Gitanjali Group of companies on a February 13 complaint of Punjab National Bank. Nirav Modi, who had left the country on January 1, has been living in an apartment in New York's Manhattan, media reports said today. Meanwhile, after almost 24 hours, raids continued at Nirav Modi's boutique in the Kala Ghoda area of South Mumbai today. On Thursday, the Enforcement Directorate had conducted searches in 17 premises across the country including Geetanjali Gems and seized stock of gold, diamond and precious stones worth Rs 5,100 crore. Eight employees of the Punjab National Bank have been suspended taking the number of suspended employees to 18. Nirav Modi left the country much before the Central Bureau of Investigation received a complaint from Punjab National Bank on January 29 about a Rs 280-crore fraud. His brother Nishal, a Belgian citizen, also left the country on January 1, while wife Ami, a US citizen, and Mehul Choksi, the Indian promoter of Gitanjali jewellery chain, departed on January 6. The Enforcement Direcotorate has written to the Ministry of External Affairs asking that the passports of Nirav Modi, his wife Ami Modi, and Mehul Choksi, the Indian promoter of Gitanjali Jewels, be revoked. The Enforcement Directorate on Thursday registered a Prevention of Money Laundering Act (PMLA) case against the billionaire jeweller and others for allegedly cheating the Punjab National Bank (PNB) of Rs 280 crores. The case was registered on the basis of a CBI First Information Report (FIR). The CBI has issued a look out circular against all the four after registering the first FIR against them. Nirav Modi was booked by the CBI, along with wife, brother and Choksi on January 31, for allegedly cheating the state-run PNB to the tune of Rs 280 crore. The Punjab National Bank said on Tuesday that it had detected a Rs 11,400 crore (USD 1.7 billion) scam in which the billionaire jeweller allegedly acquired fraudulent letters of undertaking from one of its branches for overseas credit from other Indian lenders. The scam started in 2011 and was detected in the third week of January this year. (With inputs from agencies)

PNB scam: Interpol notice against Nirav Modi

Punjab National Bank(PNB) has <a href="http://www.wionews.com/india-news/pnb-scam-interpol-notice-against-nirav-modi-33049">suspended eight employees including </a>General Manager level officers as the Nirav Modi induced scam continues to batter the state-run bank.

PNB is <a href="http://www.wionews.com/india-news/ed-conducted-in-camera-raids-on-nirav-modis-showrooms-33027">conducting an internal investigation</a> and has now suspended 18 employees.

Meanwhile, the Enforcement Directorate(ED) has issued summons to the billionaire jeweller with the Interpol issuing a &quot;diffusion notice&quot; against him.

The notice has also been issued against Nirav Modi&#39;s wife Ami Modi, his brother Nishal Modi and business partner Mehul Choksi.

As investigations into the scam continue, state-owned Union Bank of India has said it has an exposure of $300 million which is around Rs 1,915 crore as a result of the PNB fraud.

On Thursday, PNB had said it will honour its &ldquo;bonafide commitments&rdquo; even as the ED raided a number of locations of Nirav Modi&#39;s showrooms across the country in Mumbai, Delhi, Surat, Surat &amp; Hyderabad.

The ED has also frozen bank balance worth Rs 3.9 crore in various accounts and fixed deposits.

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In what could be the biggest banking fraud in India, state-owned Punjab National Bank has said it has detected a US $1.77 billion scam and billionaire jeweller Nirav Modi is at the centre of it. (WION Web Team)
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PNB is conducting an internal investigation and has now suspended 18 employees.

Punjab National Bank(PNB) has suspended eight employees including General Manager level officers as the Nirav Modi induced scam continues to batter the state-run bank. PNB is conducting an internal investigation and has now suspended 18 employees. Meanwhile, the Enforcement Directorate(ED) has issued summons to the billionaire jeweller with the Interpol issuing a "diffusion notice" against him. The notice has also been issued against Nirav Modi's wife Ami Modi, his brother Nishal Modi and business partner Mehul Choksi. As investigations into the scam continue, state-owned Union Bank of India has said it has an exposure of $300 million which is around Rs 1,915 crore as a result of the PNB fraud. On Thursday, PNB had said it will honour its “bonafide commitments” even as the ED raided a number of locations of Nirav Modi's showrooms across the country in Mumbai, Delhi, Surat, Surat & Hyderabad. The ED has also frozen bank balance worth Rs 3.9 crore in various accounts and fixed deposits. In what could be the biggest banking fraud in India, state-owned Punjab National Bank has said it has detected a US $1.77 billion scam and billionaire jeweller Nirav Modi is at the centre of it. (WION Web Team) ×

Nirav Modi row: Punjab National Bank suspends 8 officers over scam

State-owned Union Bank of India <a href="http://www.wionews.com/india-news/pnb-stocks-continue-to-slide-for-third-consecutive-day-33043">has said it has an exposure of $300 million</a> (around Rs 1,915 crore) to the Rs 11,400-crore PNB fraud case but stressed its money is safe and it will recover that. &nbsp;&nbsp;&nbsp; &nbsp;

&quot;We wish to inform you that the bank through our foreign branches has been taking exposure with Punjab National Bank (PNB) as counterparty under various Letters of Undertakings (LoU) issued through authenticated SWIFT message,&quot; Union Bank of India said in late night filing to stock exchanges.&nbsp;

The bank has also purchased some Buyers Credit assets from Axis Bank through Risk Participation as a part of normal International Business Practice, it said.&nbsp;

&quot;The outstanding exposure related to the incident is approximately USD 300 Million and the Bank is fully secured by LoU /LC /Other documents and fully confident to receive the payment,&quot; it said.&nbsp;Union Bank of India shares dropped 2.37 per cent to Rs 117.25 while the PNB stock fell over 3 per cent to Rs124.45 on BSE.

Yesterday, fraud-hit PNB said it will honour its &ldquo;bonafide commitments&rdquo; and entire liability will be known after the investigation.

The PNB fraud pertains to issuance of fake letters of understanding (LoU) to companies associated with billionaire jeweller Nirav Modi by errant PNB employees, which enabled these companies to raise buyers credit from international branches of other Indian lenders.

Last week, PNB had lodged an FIR with CBI stating that fraudulent LoUs worth Rs 280.7 crore were first issued on January 16.

At the time, PNB had said it was digging into records to examine the magnitude of the fraud.

In the complaint, PNB had named three diamond firms -- Diamonds R Us, Solar Exports and Stellar Diamonds -- saying they had approached it on January 16 with a request for buyers credit for making payment to overseas suppliers.

The bank sought 100 per cent cash margins for issuing LoUs for raising buyers credit, which was contested by the firms saying they had availed of the facility from as early as 2010.&nbsp;Nirav Modi, his wife Ami, brother Nishal and Mehul Choksi are partners in Diamonds R US, Solar Exports and Stellar Diamonds, which has shops in foreign locations such as Hong Kong, Dubai, and New York.

The bank has also purchased some Buyers Credit assets from Axis Bank through Risk Participation as a part of normal International Business Practice

State-owned Union Bank of India has said it has an exposure of $300 million (around Rs 1,915 crore) to the Rs 11,400-crore PNB fraud case but stressed its money is safe and it will recover that. "We wish to inform you that the bank through our foreign branches has been taking exposure with Punjab National Bank (PNB) as counterparty under various Letters of Undertakings (LoU) issued through authenticated SWIFT message," Union Bank of India said in late night filing to stock exchanges. The bank has also purchased some Buyers Credit assets from Axis Bank through Risk Participation as a part of normal International Business Practice, it said. "The outstanding exposure related to the incident is approximately USD 300 Million and the Bank is fully secured by LoU /LC /Other documents and fully confident to receive the payment," it said. Union Bank of India shares dropped 2.37 per cent to Rs 117.25 while the PNB stock fell over 3 per cent to Rs124.45 on BSE. Yesterday, fraud-hit PNB said it will honour its “bonafide commitments” and entire liability will be known after the investigation. The PNB fraud pertains to issuance of fake letters of understanding (LoU) to companies associated with billionaire jeweller Nirav Modi by errant PNB employees, which enabled these companies to raise buyers credit from international branches of other Indian lenders. Last week, PNB had lodged an FIR with CBI stating that fraudulent LoUs worth Rs 280.7 crore were first issued on January 16. At the time, PNB had said it was digging into records to examine the magnitude of the fraud. In the complaint, PNB had named three diamond firms -- Diamonds R Us, Solar Exports and Stellar Diamonds -- saying they had approached it on January 16 with a request for buyers credit for making payment to overseas suppliers. The bank sought 100 per cent cash margins for issuing LoUs for raising buyers credit, which was contested by the firms saying they had availed of the facility from as early as 2010. Nirav Modi, his wife Ami, brother Nishal and Mehul Choksi are partners in Diamonds R US, Solar Exports and Stellar Diamonds, which has shops in foreign locations such as Hong Kong, Dubai, and New York.

Exposure of $300 million in PNB fraud case: Union Bank of India

The Ministry of External Affairs said on Friday that they were not aware of the <a href="http://www.wionews.com/india-news/pnb-scam-nirav-modi-left-india-on-january-1-say-officials-32966" target="_blank">location of Nirav Modi</a>.

MEA&nbsp; Raveesh Kumar said &quot; I can say with confidence that this gentleman is not in touch with any of our officials and frankly at this stage, we are not aware of his location&quot;.

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I can say with confidence that this gentleman is not in touch with any of our officials &amp; frankly at this stage we are not aware about his location: Raveesh Kumar, MEA <a href="https://twitter.com/hashtag/NiravModi?src=hash&amp;ref_src=twsrc%5Etfw">#NiravModi</a> <a href="https://twitter.com/hashtag/PNBFraudCase?src=hash&amp;ref_src=twsrc%5Etfw">#PNBFraudCase</a> <a href="https://t.co/1fMUamd1pg">pic.twitter.com/1fMUamd1pg</a>
&mdash; ANI (@ANI) <a href="https://twitter.com/ANI/status/964469268367757312?ref_src=twsrc%5Etfw">February 16, 2018</a></blockquote>
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Billionaire jewellery designer Nirav Modi left the country on January 1 much before the CBI received a complaint from Punjab National Bank on January 29 about a Rs 280-crore fraud.

His wife Ami, a US citizen, and business partner Mehul Choksi also left the country on January 6, while his brother Nishal left on January 1.&nbsp;

A lookout notice was issued&nbsp;against all the four after registering an FIR.

The <a href="http://www.wionews.com/india-news/passports-of-nirav-modi-mehul-choksi-suspended-mea-gives-one-week-to-respond-33087" target="_blank">MEA also suspended with immediate effect the passports </a>of diamantaire Nirav Modi and his business partner Mehul Choksi for four weeks.

The ministry gave them one week to respond why their passports should not be revoked.

MEA Raveesh Kumar said 'I can say with confidence that this gentleman is not in touch with any of our officials and frankly at this stage, we are not aware of his location'

The Ministry of External Affairs said on Friday that they were not aware of the location of Nirav Modi. MEA Raveesh Kumar said " I can say with confidence that this gentleman is not in touch with any of our officials and frankly at this stage, we are not aware of his location". I can say with confidence that this gentleman is not in touch with any of our officials & frankly at this stage we are not aware about his location: Raveesh Kumar, MEA #NiravModi #PNBFraudCase pic.twitter.com/1fMUamd1pg — ANI (@ANI) February 16, 2018 × Billionaire jewellery designer Nirav Modi left the country on January 1 much before the CBI received a complaint from Punjab National Bank on January 29 about a Rs 280-crore fraud. His wife Ami, a US citizen, and business partner Mehul Choksi also left the country on January 6, while his brother Nishal left on January 1. A lookout notice was issued against all the four after registering an FIR. The MEA also suspended with immediate effect the passports of diamantaire Nirav Modi and his business partner Mehul Choksi for four weeks. The ministry gave them one week to respond why their passports should not be revoked.

No official is in touch with Nirav Modi: MEA

The Enforcement Directorate (ED) has recovered diamond and gold worth Rs 549 crore in raids that were conducted in about 35 new locations on Friday.&nbsp;

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A&nbsp;total of Rs 5649 crore have been recovered following raids by the ED since Thursday.&nbsp;

The raids were conducted spread across 11 states.&nbsp;

The ED has also directed&nbsp;<a href="http://www.wionews.com/india-news/passports-of-nirav-modi-mehul-choksi-suspended-mea-gives-one-week-to-respond-33087" target="_blank">Nirav Modi</a> that&nbsp;no sale&nbsp;or&nbsp;purchase should take place in showrooms&nbsp;in New York, London, Macau, and Beijing.&nbsp;

Also read: <a href="http://www.wionews.com/india-news/former-allahabad-bank-director-says-he-resigned-as-he-was-pressured-to-give-loan-to-gitanjali-gems-33085" target="_blank">Resigned as I was pressured to give loan to Gitanjali Gems: Former Allahabad Bank director</a>

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ED registered another case today against <a href="https://twitter.com/hashtag/NiravModi?src=hash&amp;ref_src=twsrc%5Etfw">#NiravModi</a>. 35 new locations were raided.Searches covering 11 states.Diamond and gold worth 549 crore seized today. Total 5649 crore.(Including yesterday&#39;s recovery) 29 immovable properties identified: ED Sources <a href="https://t.co/3RdwRJwZ2m">pic.twitter.com/3RdwRJwZ2m</a>
&mdash; ANI (@ANI) <a href="https://twitter.com/ANI/status/964497281453056000?ref_src=twsrc%5Etfw">February 16, 2018</a></blockquote>
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The ED also registered a new case in connection with the 11300 crore PNB scam.&nbsp;

The Punjab National Bank&nbsp;announced this week that it had discovered fraudulent transactions worth Rs 11,400 crore at a single branch in Mumbai.&nbsp;

It stated that Nirav Modi had carried out &ldquo;fraudulent transactions&rdquo; worth over Rs 11,400 crore by acquiring fake bank guarantees and showing it to other banks in order to extract more money.

The ED has also directed ordered Nirav Modi that no sale or purchase should take place in showrooms in New York, London, Macau, and Beijing.

The Enforcement Directorate (ED) has recovered diamond and gold worth Rs 549 crore in raids that were conducted in about 35 new locations on Friday. × A total of Rs 5649 crore have been recovered following raids by the ED since Thursday. The raids were conducted spread across 11 states. The ED has also directed Nirav Modi that no sale or purchase should take place in showrooms in New York, London, Macau, and Beijing. Also read: Resigned as I was pressured to give loan to Gitanjali Gems: Former Allahabad Bank director ED registered another case today against #NiravModi. 35 new locations were raided.Searches covering 11 states.Diamond and gold worth 549 crore seized today. Total 5649 crore.(Including yesterday's recovery) 29 immovable properties identified: ED Sources pic.twitter.com/3RdwRJwZ2m — ANI (@ANI) February 16, 2018 × The ED also registered a new case in connection with the 11300 crore PNB scam. The Punjab National Bank announced this week that it had discovered fraudulent transactions worth Rs 11,400 crore at a single branch in Mumbai. It stated that Nirav Modi had carried out “fraudulent transactions” worth over Rs 11,400 crore by acquiring fake bank guarantees and showing it to other banks in order to extract more money.

PNB fraud: ED recovers total of Rs 5649 crore assets, raids 35 new locations

Punjab National Bank(PNB) <a href="http://www.wionews.com/india-news/ed-conducted-in-camera-raids-on-nirav-modis-showrooms-33027">stocks fell as much as 3.8 </a><a href="http://www.wionews.com/india-news/ed-conducted-in-camera-raids-on-nirav-modis-showrooms-33027">per cent</a><a href="http://www.wionews.com/india-news/ed-conducted-in-camera-raids-on-nirav-modis-showrooms-33027"> </a>on Friday, sliding for a third consecutive session as the country&#39;s second-biggest state-run lender continued to reel after saying it had been hit with a $1.77 billion fraud.

PNB shares <a href="http://www.wionews.com/india-news/pnb-scam-nirav-modi-left-india-on-january-1-say-officials-32966">were down 1.75 </a><a href="http://www.wionews.com/india-news/pnb-scam-nirav-modi-left-india-on-january-1-say-officials-32966">per cent</a>&nbsp;after sliding 20 per cent over the previous two sessions.

PNB has lost over Rs 8,000 crore of market valuation in two days - an amount equivalent to over six-times its full-year profit.

On Thursday, PNB&nbsp;extended its fall for the second straight session and ended the day 12 per cent lower at Rs 128.35 on BSE.&nbsp;

The stock have fallen 10 per cent after the lender said it had detected Rs 11,400 crore ($ 1.77 billion) fraud at a Mumbai branch.

Following the slump in the counter over the last two days, the market capitalisation of the company has plunged a whopping Rs 8,076.59 crore to Rs 31,132.41 crore.

PNB has lost over Rs 8,000 crore of market valuation in two days -- an amount equivalent to over six-times its full-year profit.

Punjab National Bank(PNB) stocks fell as much as 3.8 per cent on Friday, sliding for a third consecutive session as the country's second-biggest state-run lender continued to reel after saying it had been hit with a $1.77 billion fraud. PNB shares were down 1.75 per cent after sliding 20 per cent over the previous two sessions. PNB has lost over Rs 8,000 crore of market valuation in two days - an amount equivalent to over six-times its full-year profit. On Thursday, PNB extended its fall for the second straight session and ended the day 12 per cent lower at Rs 128.35 on BSE. The stock have fallen 10 per cent after the lender said it had detected Rs 11,400 crore ($ 1.77 billion) fraud at a Mumbai branch. Following the slump in the counter over the last two days, the market capitalisation of the company has plunged a whopping Rs 8,076.59 crore to Rs 31,132.41 crore.

PNB stocks continue to slide for third consecutive day

The Enforcement Directorate<a href="http://www.wionews.com/india-news/pnb-scam-ed-cbi-turn-up-heat-on-nirav-modi-jewellery-worth-rs-5100-cr-seized-32998">(ED) conducted in-camera raids</a> on Nirav Modi&#39;s various showrooms while seizing diamonds on Thursday.

The ED conducted searches in<a href="http://www.wionews.com/india-news/brand-ambassador-priyanka-chopra-seeking-to-terminate-contract-with-nirav-modi-spokesperson-32983"> 17 premises across the country</a> including Geetanjali Gems and seized stock of gold, diamond and precious stones worth Rs 5,100 crore.

The Enforcement Directorate Mumbai office received the FIR from CBI and complaint from Punjab National Bank (PNB) on Wednesday about alleged fraud in PNB by Nirav Modi involving fraud of 280 crores.

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PNB said it has begun criminal action against two staff members and suspended some others. (WION)
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Nirav Modi, his wife, and others allegedly worked with officials of Punjab National Bank to illegally obtain Letters of Undertaking (LoU).

Following the FIR, ED swung into action searching premises of Nirav&nbsp;Modi and Geetanjali Gems in Delhi, Mumbai, Surat &amp; Hyderabad.&nbsp;The ED has also frozen bank balance worth Rs 3.9 crore in&nbsp;various accounts and fixed deposits.

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Nirav Modi had carried out &ldquo;fraudulent transactions&rdquo; worth over Rs 11,400 crore by acquiring fake bank guarantees (WION)
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PNB has accused three companies - Solar Exports, Stellar Diamonds and Diamond R US - it said belong to Nirav Modi. (WION)
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In what could be the biggest banking fraud in India, state-owned Punjab National Bank has said it has detected a US $1.77 billion scam and billionaire jeweller Nirav Modi is at the centre of it. (WION Web Team)
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Nirav Modi, his wife, and others allegedly worked with officials of Punjab National Bank to illegally obtain Letters of Undertaking.

The Enforcement Directorate(ED) conducted in-camera raids on Nirav Modi's various showrooms while seizing diamonds on Thursday. The ED conducted searches in 17 premises across the country including Geetanjali Gems and seized stock of gold, diamond and precious stones worth Rs 5,100 crore. The Enforcement Directorate Mumbai office received the FIR from CBI and complaint from Punjab National Bank (PNB) on Wednesday about alleged fraud in PNB by Nirav Modi involving fraud of 280 crores. PNB said it has begun criminal action against two staff members and suspended some others. (WION) × Nirav Modi, his wife, and others allegedly worked with officials of Punjab National Bank to illegally obtain Letters of Undertaking (LoU). Following the FIR, ED swung into action searching premises of Nirav Modi and Geetanjali Gems in Delhi, Mumbai, Surat & Hyderabad. The ED has also frozen bank balance worth Rs 3.9 crore in various accounts and fixed deposits. Nirav Modi had carried out “fraudulent transactions” worth over Rs 11,400 crore by acquiring fake bank guarantees (WION) × PNB has accused three companies - Solar Exports, Stellar Diamonds and Diamond R US - it said belong to Nirav Modi. (WION) × In what could be the biggest banking fraud in India, state-owned Punjab National Bank has said it has detected a US $1.77 billion scam and billionaire jeweller Nirav Modi is at the centre of it. (WION Web Team) ×

ED conducted 'in-camera' raids on Nirav Modi's showrooms

<a href="http://www.wionews.com/world/us-senate-rejects-trumps-immigration-plan-dreamers-programme-left-hanging-33017">US Senate rejects Trump&#39;s immigration plan; &#39;Dreamers&#39; programme left hanging</a>

In a major blow to President Trump, the US Senate today voted against the president&#39;s immigration plan with several Republicans joining the opposition Democrats in opposing the bill. President Trump&#39;s own party leaders voted against the bill with as many as 14 Republicans joining hands with Democrats as the proposal fell 39 to 60.

<a href="http://www.wionews.com/india-news/jk-encounter-underway-between-security-forces-terrorists-in-baramulla-33023">J&amp;K: Encounter underway between security forces, terrorists in Baramulla</a>

An encounter is underway between security forces and terrorists in Palhalan area of Baramulla&rsquo;s Pattan area in J&amp;K. The firefight comes just days after two LeT terrorists and security forces were engaged in a fierce gun battle in Srinagar&#39;s Karan Nagar area which lasted over 30 hours.

<a href="http://www.wionews.com/india-news/ed-conducted-in-camera-raids-on-nirav-modis-showrooms-33027">ED conducted &#39;in-camera&#39; raids on Nirav Modi&#39;s showrooms</a>

The Enforcement Directorate(ED) conducted in-camera raids on Nirav Modi&#39;s various showrooms while seizing diamonds on Thursday. The ED conducted searches in 17 premises across the country including Geetanjali Gems and seized stock of gold, diamond and precious stones worth Rs 5,100 crore.

<a href="http://www.wionews.com/world/florida-shooting-suspect-was-part-of-white-supremacist-group-33018">Florida school shooting: Suspect was part of &#39;white supremacist group&#39;</a>

The boy behind the Florida school shooting on Wednesday, Nikolas Cruz, was a member of a &quot;white supremacist group&quot; and had been a part of the military-style training routines, the rights group Anti-Defamation League said Thursday. Nikolas Cruz, 19, described by fellow pupils as a &ldquo;weird and racist&rdquo; gun-obsessed, has been charged with murdering 17 people at his former school in Parkland, Florida.

<a href="http://www.wionews.com/india-news/maharashtra-local-group-files-complaint-against-oru-adaar-love-actress-director-33020">Maharashtra: Local group files complaint against &#39;Oru </a><a href="http://www.wionews.com/india-news/maharashtra-local-group-files-complaint-against-oru-adaar-love-actress-director-33020">Adaar</a><a href="http://www.wionews.com/india-news/maharashtra-local-group-files-complaint-against-oru-adaar-love-actress-director-33020"> Love&#39; actress, director&nbsp; &nbsp;</a>

A police complaint against Malayalam actress Priya Prakash Varrier and film director Omar Lulu has been lodged by a local organisation for allegedly hurting sentiments of the Muslim community through a song in their upcoming movie &quot;Oru Adaar Love&quot;. However, police have not registered a First Information Report (FIR) yet.

US Senate rejects Trump's immigration plan; 'Dreamers' programme left hanging In a major blow to President Trump, the US Senate today voted against the president's immigration plan with several Republicans joining the opposition Democrats in opposing the bill. President Trump's own party leaders voted against the bill with as many as 14 Republicans joining hands with Democrats as the proposal fell 39 to 60. J&K: Encounter underway between security forces, terrorists in Baramulla An encounter is underway between security forces and terrorists in Palhalan area of Baramulla’s Pattan area in J&K. The firefight comes just days after two LeT terrorists and security forces were engaged in a fierce gun battle in Srinagar's Karan Nagar area which lasted over 30 hours. ED conducted 'in-camera' raids on Nirav Modi's showrooms The Enforcement Directorate(ED) conducted in-camera raids on Nirav Modi's various showrooms while seizing diamonds on Thursday. The ED conducted searches in 17 premises across the country including Geetanjali Gems and seized stock of gold, diamond and precious stones worth Rs 5,100 crore. Florida school shooting: Suspect was part of 'white supremacist group' The boy behind the Florida school shooting on Wednesday, Nikolas Cruz, was a member of a "white supremacist group" and had been a part of the military-style training routines, the rights group Anti-Defamation League said Thursday. Nikolas Cruz, 19, described by fellow pupils as a “weird and racist” gun-obsessed, has been charged with murdering 17 people at his former school in Parkland, Florida. Maharashtra: Local group files complaint against 'Oru Adaar Love' actress, director A police complaint against Malayalam actress Priya Prakash Varrier and film director Omar Lulu has been lodged by a local organisation for allegedly hurting sentiments of the Muslim community through a song in their upcoming movie "Oru Adaar Love". However, police have not registered a First Information Report (FIR) yet.

WION Morning News Brief, February 16, 2018

Union Minister Prakash Javadekar has issued clarification over the <a href="http://www.wionews.com/india-news/pnb-scam-this-is-how-nirav-modi-planned-his-safe-exit-from-india-33071" target="_blank">PNB Fraud Case</a>&nbsp;which involves&nbsp;<a href="http://www.wionews.com/india-news/pnb-scam-how-punjab-national-bank-fell-victim-to-countrys-biggest-bank-fraud-33009" target="_blank">fraudulent transactions worth Rs 11,400 crore</a>.

While addressing the media, Javadekar&nbsp;said that Nirav Modi&nbsp;scam started during the UPA&#39;s regime and it was because of the alertness of the NDA government that the fraud was brought into the light.&nbsp;

He said &quot;The scam which has come into the light is a scam of the UPA Government. This started&nbsp;during the UPA&#39;s reign in 2011. It is the alertness of the NDA government which has brought this scam into the light. All the NPAs, the wrongful distribution of loans, amongst&nbsp;others were all passed down to us by the UPA Government&quot;.

Referring to Dinesh Dubey&#39;s resignation, he asked who forced the&nbsp;Finance&nbsp;Secretary to&nbsp;put pressure on&nbsp;Dinesh Dubey.&nbsp;

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Finance Secretary during UPA&#39;s regime, instead of taking action, forced Dinesh Dubey to resign. We are asking who pressurised the Foreign Secretary to pressurise Dinesh Dubey?: Union Minister Prakash Javadekar <a href="https://twitter.com/hashtag/PNBFraudCase?src=hash&amp;ref_src=twsrc%5Etfw">#PNBFraudCase</a> <a href="https://t.co/VtOKywg1GJ">pic.twitter.com/VtOKywg1GJ</a>
&mdash; ANI (@ANI) <a href="https://twitter.com/ANI/status/964463261105229830?ref_src=twsrc%5Etfw">February 16, 2018</a></blockquote>
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Dinesh Dubey is the former Bank Director of the Allahabad Bank. He resigned from office in 2013 citing his dissatisfaction over something.&nbsp;

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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: Rajiv Takru, Former Banking Secy on ex-Allahabad Bank Director Dinesh Dubey
&mdash; ANI (@ANI) <a href="https://twitter.com/ANI/status/964467669792706561?ref_src=twsrc%5Etfw">February 16, 2018</a></blockquote>
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Javdekar also assured of recovering the money and said an investigation was being conducted into the &quot;banking fraud&quot;.&nbsp;

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This is a banking fraud, which is being investigated. We are making sure that the money is recovered: Union Minister Prakash Javadekar <a href="https://twitter.com/hashtag/PNBFraudCase?src=hash&amp;ref_src=twsrc%5Etfw">#PNBFraudCase</a> <a href="https://t.co/80r3r9zck9">pic.twitter.com/80r3r9zck9</a>
&mdash; ANI (@ANI) <a href="https://twitter.com/ANI/status/964464030818734080?ref_src=twsrc%5Etfw">February 16, 2018</a></blockquote>
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The Punjab National Bank&nbsp;announced this week that it had discovered fraudulent transactions worth Rs 11,400 crore at a single branch in Mumbai.&nbsp;

It stated that Nirav Modi had carried out &ldquo;fraudulent transactions&rdquo; worth over Rs 11,400 crore by acquiring fake bank guarantees and showing it to other banks in order to extract more money.

&nbsp;

He said 'the scam which has come into the light is a scam of the UPA Government. This started during the UPA's reign in 2011. It is the alertness of the NDA government which has brought this scam into the light'

Union Minister Prakash Javadekar has issued clarification over the PNB Fraud Case which involves fraudulent transactions worth Rs 11,400 crore. While addressing the media, Javadekar said that Nirav Modi scam started during the UPA's regime and it was because of the alertness of the NDA government that the fraud was brought into the light. He said "The scam which has come into the light is a scam of the UPA Government. This started during the UPA's reign in 2011. It is the alertness of the NDA government which has brought this scam into the light. All the NPAs, the wrongful distribution of loans, amongst others were all passed down to us by the UPA Government". Referring to Dinesh Dubey's resignation, he asked who forced the Finance Secretary to put pressure on Dinesh Dubey. Finance Secretary during UPA's regime, instead of taking action, forced Dinesh Dubey to resign. We are asking who pressurised the Foreign Secretary to pressurise Dinesh Dubey?: Union Minister Prakash Javadekar #PNBFraudCase pic.twitter.com/VtOKywg1GJ — ANI (@ANI) February 16, 2018 × Dinesh Dubey is the former Bank Director of the Allahabad Bank. He resigned from office in 2013 citing his dissatisfaction over something. 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: Rajiv Takru, Former Banking Secy on ex-Allahabad Bank Director Dinesh Dubey — ANI (@ANI) February 16, 2018 × Javdekar also assured of recovering the money and said an investigation was being conducted into the "banking fraud". This is a banking fraud, which is being investigated. We are making sure that the money is recovered: Union Minister Prakash Javadekar #PNBFraudCase pic.twitter.com/80r3r9zck9 — ANI (@ANI) February 16, 2018 × The Punjab National Bank announced this week that it had discovered fraudulent transactions worth Rs 11,400 crore at a single branch in Mumbai. It stated that Nirav Modi had carried out “fraudulent transactions” worth over Rs 11,400 crore by acquiring fake bank guarantees and showing it to other banks in order to extract more money.

PNB Scam: Fraud came to light due to alertness of NDA govt says Union Minister Prakash Javadekar

Investors may have been shocked when one of India&#39;s biggest banks disclosed a $1.77 billion fraud by a <a href="http://www.wionews.com/india-news/who-is-nirav-modi-the-billionaire-jeweller-at-centre-of-rs-11000-crore-scam-32970" target="_blank">billionaire jeweller Nirav Modi</a>, but the central bank has recorded data that shows the problem runs far deeper and wider.

Reserve Bank of India data, which a Reuters reporter obtained through a right-to-information request, shows state-run banks have reported 8,670 &quot;loan fraud&quot; cases totalling Rs 61,260 crore ($9.58 billion) over the last five financial years up to March 31, 2017.

Also&nbsp;read:&nbsp;<a href="http://www.wionews.com/india-news/pnb-scam-this-is-how-nirav-modi-planned-his-safe-exit-from-india-33071" target="_blank">This is how Nirav Modi planned his safe exit from India</a>

In India, loan frauds typically refer to cases where the borrower intentionally tries to deceive the lending bank and does not repay the loan.

The figures expose the magnitude of the problem in a banking sector already under pressure after years of poor lending practices. Bad loans surged to a record peak of nearly $149 billion last year. 
 
Bank loan frauds have steadily increased as well, reaching Rs 17,634 crore in the latest financial year from Rs 6,357 crore in 2012-13, according to the data, which doesn&#39;t include the PNB case. 
 
Punjab National Bank, India&#39;s second-largest state lender, said on Wednesday two junior officers at a single branch had illegally steered $1.77 billion in fraudulent loans to companies, most of them controlled by billionaire jeweller Nirav Modi. It was India&#39;s biggest fraud ever.

&quot;This might be the tip of the iceberg or the middle, and that is the worry,&quot; said Pratibha Jain, a partner at law firm Nishith Desai Associates, who advises on bankruptcy cases. 
 
&quot;The fact is we don&#39;t know what else is out there.&quot;

BANK DISCLOSURES 
 
The RBI did not immediately respond to a request for comment. But in June 2017 the central bank, in its Financial Stability Report, called frauds in banks and financial institutions &quot;one of the emerging risks to the financial sector&quot;. 
 
&quot;In a number of large value frauds, serious gaps in credit underwriting standards were evident,&quot; the RBI said, adding that some of the gaps include lack of continuous monitoring of cash flows and cash profits, diversion of funds, double financing and general credit governance issues in banks. 
 
The RBI has been commended for forcing Indian banks to fully disclose its bad loans, speed up their recovery, and stop hiding fraud cases as non-performing assets.

Yet to some critics, the RBI has, at the same time, been too guarded about publicly sharing data on loan defaults or fraudulent loans. This is partly due to legal constraints on disclosing individual cases and worries investors would pummel the affected banks, making loan recovery even harder. 
 
In fact, the numbers of loan fraud cases across India could be even higher since they only include cases reported to the RBI, which involve only loans of Rs 1,00,000 or more. 
 
In its right-to-information request, Reuters sought data from 20 of India&#39;s 21 state-run lenders and obtained 15 replies. 
 
PNB topped the list with 389 cases totalling Rs 6,562 crore ($1.03 billion) over the last five financial years, in terms of the total amounts involved. 
 
Reuters was unable to obtain a detailed breakdown on the exact nature and method of the loan frauds the banks reported to RBI over the last five financial years. 
 
After PNB, Bank of Baroda had the highest amount of loan fraud reported, with Rs 4,473 crore from 389 cases and Bank of India ranked third, with loan frauds totalling Rs 4,050 crore from 231 cases over the same period, the data shows. 
 
India&#39;s biggest lender, State Bank of India reported 1,069 loan fraud cases in the last five financial years but did not disclose the amount. 
 
It was also unclear how much has been recovered by the banks over the years.

WHOLESALE REFORMS 
 
The magnitude of the bad debt in India forced the government last year to bail out the sector by pledging to inject $32 billion over this financial year and next. 
 
Yet analysts and credit rating agencies have long warned that solving the bad debt at India&#39;s banking sector needs to also involve wholesale reforms of the lending practices that led to the surge in bad loans.

Bankers have been blamed for steering funds to politically connected business tycoons, such as Vijay Mallya, without due diligence, or after being pressed by government officials to steer funds to sectors it wanted to promote, such as infrastructure. 
 
Mallya stands accused in India of fraudulently palming off losses from his now defunct Kingfisher Airlines onto banks by taking out loans he had no intention of repaying, an allegation he denies.

Nirav Modi, the jeweller accused in the PNB fraud case, posed for pictures with Indian Prime Minister Narendra Modi at the World Economic Forum in Davos, Switzerland, where he was part of India&#39;s delegation of corporate leaders.

RBI data shows state-run banks have reported 8,670 'loan fraud' cases totalling Rs 61,260 crore over the last five financial years

Investors may have been shocked when one of India's biggest banks disclosed a $1.77 billion fraud by a billionaire jeweller Nirav Modi, but the central bank has recorded data that shows the problem runs far deeper and wider. Reserve Bank of India data, which a Reuters reporter obtained through a right-to-information request, shows state-run banks have reported 8,670 "loan fraud" cases totalling Rs 61,260 crore ($9.58 billion) over the last five financial years up to March 31, 2017. Also read: This is how Nirav Modi planned his safe exit from India In India, loan frauds typically refer to cases where the borrower intentionally tries to deceive the lending bank and does not repay the loan. The figures expose the magnitude of the problem in a banking sector already under pressure after years of poor lending practices. Bad loans surged to a record peak of nearly $149 billion last year. Bank loan frauds have steadily increased as well, reaching Rs 17,634 crore in the latest financial year from Rs 6,357 crore in 2012-13, according to the data, which doesn't include the PNB case. Punjab National Bank, India's second-largest state lender, said on Wednesday two junior officers at a single branch had illegally steered $1.77 billion in fraudulent loans to companies, most of them controlled by billionaire jeweller Nirav Modi. It was India's biggest fraud ever. "This might be the tip of the iceberg or the middle, and that is the worry," said Pratibha Jain, a partner at law firm Nishith Desai Associates, who advises on bankruptcy cases. "The fact is we don't know what else is out there." BANK DISCLOSURES The RBI did not immediately respond to a request for comment. But in June 2017 the central bank, in its Financial Stability Report, called frauds in banks and financial institutions "one of the emerging risks to the financial sector". "In a number of large value frauds, serious gaps in credit underwriting standards were evident," the RBI said, adding that some of the gaps include lack of continuous monitoring of cash flows and cash profits, diversion of funds, double financing and general credit governance issues in banks. The RBI has been commended for forcing Indian banks to fully disclose its bad loans, speed up their recovery, and stop hiding fraud cases as non-performing assets. Yet to some critics, the RBI has, at the same time, been too guarded about publicly sharing data on loan defaults or fraudulent loans. This is partly due to legal constraints on disclosing individual cases and worries investors would pummel the affected banks, making loan recovery even harder. In fact, the numbers of loan fraud cases across India could be even higher since they only include cases reported to the RBI, which involve only loans of Rs 1,00,000 or more. In its right-to-information request, Reuters sought data from 20 of India's 21 state-run lenders and obtained 15 replies. PNB topped the list with 389 cases totalling Rs 6,562 crore ($1.03 billion) over the last five financial years, in terms of the total amounts involved. Reuters was unable to obtain a detailed breakdown on the exact nature and method of the loan frauds the banks reported to RBI over the last five financial years. After PNB, Bank of Baroda had the highest amount of loan fraud reported, with Rs 4,473 crore from 389 cases and Bank of India ranked third, with loan frauds totalling Rs 4,050 crore from 231 cases over the same period, the data shows. India's biggest lender, State Bank of India reported 1,069 loan fraud cases in the last five financial years but did not disclose the amount. It was also unclear how much has been recovered by the banks over the years. WHOLESALE REFORMS The magnitude of the bad debt in India forced the government last year to bail out the sector by pledging to inject $32 billion over this financial year and next. Yet analysts and credit rating agencies have long warned that solving the bad debt at India's banking sector needs to also involve wholesale reforms of the lending practices that led to the surge in bad loans. Bankers have been blamed for steering funds to politically connected business tycoons, such as Vijay Mallya, without due diligence, or after being pressed by government officials to steer funds to sectors it wanted to promote, such as infrastructure. Mallya stands accused in India of fraudulently palming off losses from his now defunct Kingfisher Airlines onto banks by taking out loans he had no intention of repaying, an allegation he denies. Nirav Modi, the jeweller accused in the PNB fraud case, posed for pictures with Indian Prime Minister Narendra Modi at the World Economic Forum in Davos, Switzerland, where he was part of India's delegation of corporate leaders.

RBI's unpublished data shows India's fraud problems extend far beyond PNB

<a href="http://www.wionews.com/india-news/pnb-scam-this-is-how-nirav-modi-planned-his-safe-exit-from-india-33071" target="_blank">This is how Nirav Modi planned his safe exit from India</a>

A lookout notice was issued by the CBI against jeweller Nirav Modi and his associates last month in the&nbsp; <a href="http://www.wionews.com/india-news/pnb-scam-how-punjab-national-bank-fell-victim-to-countrys-biggest-bank-fraud-33009" target="_blank">PNB banking fraud&nbsp;</a>case but by then they had escaped from India.

<a href="http://www.wionews.com/india-news/former-allahabad-bank-director-says-he-resigned-as-he-was-pressurised-to-give-loan-to-gitanjali-gems-33085" target="_blank">Resigned as I was </a><a href="http://www.wionews.com/india-news/former-allahabad-bank-director-says-he-resigned-as-he-was-pressurised-to-give-loan-to-gitanjali-gems-33085" target="_blank">pressurised</a><a href="http://www.wionews.com/india-news/former-allahabad-bank-director-says-he-resigned-as-he-was-pressurised-to-give-loan-to-gitanjali-gems-33085" target="_blank"> to give loan to Gitanjali Gems: Former Allahabad Bank director</a>

Even as the skeletons tumble out of closet in the Rs 11300 crore PNB scam, former Allahabad Bank director revealed that he resigned from his post after he was pressurised to give a loan to Gitanjali Gems.&nbsp;

<a href="http://www.wionews.com/india-news/passports-of-nirav-modi-mehul-choksi-suspended-mea-gives-one-week-to-respond-33087" target="_blank">Passports of Nirav Modi, Mehul Choksi suspended, MEA gives one week to respond</a>

The external affairs ministry on Friday suspended with immediate effect the passports of diamantaire Nirav Modi and his business partner Mehul Choksi for four weeks.

<a href="http://www.wionews.com/south-asia/pakistan-to-deploy-troops-in-saudi-arabia-33091" target="_blank">Pakistan to deploy troops in Saudi Arabia</a>

In a major policy shift, Pakistan has decided to deploy troops in&nbsp;<a href="https://timesofindia.indiatimes.com/topic/Saudi-Arabia" pg="AS1_InlineMedia#AS1_https://timesofindia.indiatimes.com/world/pakistan/pakistan-to-deploy-troops-in-saudi-arabia/articleshow/62945805.cms~Saudi Arabia-https://timesofindia.indiatimes.com/topic/Saudi-Arabia">Saudi Arabia</a>under bilateral security cooperation with the kingdom which is involved in the ongoing civil war in neighbouring Yemen. 
The&nbsp;<a href="https://timesofindia.indiatimes.com/topic/Pakistan-Army" pg="AS1_InlineMedia#AS1_https://timesofindia.indiatimes.com/world/pakistan/pakistan-to-deploy-troops-in-saudi-arabia/articleshow/62945805.cms~Pakistan Army-https://timesofindia.indiatimes.com/topic/Pakistan-Army">Pakistan Army</a>&nbsp;announced the decision after a meeting between Army Chief General&nbsp;<a href="https://timesofindia.indiatimes.com/topic/Qamar-Javed-Bajwa" pg="AS1_InlineMedia#AS1_https://timesofindia.indiatimes.com/world/pakistan/pakistan-to-deploy-troops-in-saudi-arabia/articleshow/62945805.cms~Qamar Javed Bajwa-https://timesofindia.indiatimes.com/topic/Qamar-Javed-Bajwa">Qamar Javed Bajwa</a>&nbsp;and Saudi ambassador to Pakistan Nawaf&nbsp;<a href="https://timesofindia.indiatimes.com/topic/Saeed-Al-Maliki" pg="AS1_InlineMedia#AS1_https://timesofindia.indiatimes.com/world/pakistan/pakistan-to-deploy-troops-in-saudi-arabia/articleshow/62945805.cms~Saeed Al-Maliki-https://timesofindia.indiatimes.com/topic/Saeed-Al-Maliki">Saeed Al-Maliki</a>, at army headquarters in Rawalpindi yesterday.

<a href="http://www.wionews.com/world/uk-pm-theresa-may-heads-to-berlin-to-face-tough-german-line-on-brexit-33083" target="_blank">UK PM Theresa May heads to Berlin to face tough German line on Brexit</a>

British Prime Minister Theresa May travels to Berlin on Friday to meet German leader Angela Merkel, hoping to overcome near-deadlock in her attempts to negotiate a Brexit deal with the European Union.

This is how Nirav Modi planned his safe exit from India A lookout notice was issued by the CBI against jeweller Nirav Modi and his associates last month in the PNB banking fraud case but by then they had escaped from India. Resigned as I was pressurised to give loan to Gitanjali Gems: Former Allahabad Bank director Even as the skeletons tumble out of closet in the Rs 11300 crore PNB scam, former Allahabad Bank director revealed that he resigned from his post after he was pressurised to give a loan to Gitanjali Gems. Passports of Nirav Modi, Mehul Choksi suspended, MEA gives one week to respond The external affairs ministry on Friday suspended with immediate effect the passports of diamantaire Nirav Modi and his business partner Mehul Choksi for four weeks. Pakistan to deploy troops in Saudi Arabia In a major policy shift, Pakistan has decided to deploy troops in Saudi Arabiaunder bilateral security cooperation with the kingdom which is involved in the ongoing civil war in neighbouring Yemen. The Pakistan Army announced the decision after a meeting between Army Chief General Qamar Javed Bajwa and Saudi ambassador to Pakistan Nawaf Saeed Al-Maliki, at army headquarters in Rawalpindi yesterday. UK PM Theresa May heads to Berlin to face tough German line on Brexit British Prime Minister Theresa May travels to Berlin on Friday to meet German leader Angela Merkel, hoping to overcome near-deadlock in her attempts to negotiate a Brexit deal with the European Union.

WION Evening News brief, February 16, 2018

From the outside, Number 2 Hoveniersstraat Street in Antwerp is a nondescript office block. Only the clusters of businessmen speaking in Gujarati on their mobile phones or with each other, give any indication of the hive of activity inside. In the lobby, streams of people shuttle back and forth through the electronic barriers while a queue of visitors waits to have their photo taken and their fingerprints scanned in order to receive a temporary ID card. The business is diamonds. It is a scene repeated elsewhere in the city, and it represents the remarkable and growing dominance of the Indian diaspora in a famous local industry.

As you look along the names on the office doors, what is striking are the names. Whereas a generation ago, the vast majority of them were Jewish, today, a significant majority are of Indian, and in particular, Gujarati origin. Names like Mehta and Patel are particularly common. Indeed, while the orthodox Jewish presence in Antwerp is still highly visible, the numbers have dwindled over time, as a new generation of young and dynamic entrepreneurs from the Gujarat have displaced them. It has been unexpected, so what is the secret to their success?

The diamond industry cannot enforce written contracts &ndash; diamonds are easily portable, universally valuable and virtually untraceable, and state courts are incapable of enforcing executory contracts for diamond sales. It operates on credit, relies on trust, and hence favours tightly knit community and family-based business networks. The Orthodox Jewish community in Antwerp had long relied on the effective social control mechanisms of their community in order to ensure trust, with anyone seeking to cheat seeing their reputation and hence ability to do business quickly destroyed. Gujarati business communities operate along similar lines, with strong family networks and a high incidence of marriage within their ethnic group. In the Gujarati case however, an additional source of community cohesion, support and solidarity comes from their caste community.

Building from the bottom

My interviews with Gujarati traders show that beginning in the 1960s, the first Gujaratis, from the Jain community and known as Palanpuri Jains, from the area of Palanpur in Gujarat, began to arrive in Antwerp, the world&rsquo;s biggest trading hub for rough diamonds. The Palanpuri Jains are a historic &ldquo;business community&rdquo; in India that has traditionally engaged in trade and hence their first foray into Antwerp was one based on capital and prior experience on the polishing side of the diamond trade in India.

The Gujarati Jains took advantage of two key factors to enter into the closed world of Antwerp&rsquo;s diamond industry: they started to specialise in smaller, lower-value stones, and used the cheap labour and excellent skill of Surat&rsquo;s diamond cutters and polishers to produce diamonds that had larger market potential. Thus, Gujaratis were able, as one trader put it: &ldquo;to polish in rupees and sell in dollars&rdquo;.

These two factors, along with others, such as initially buying from source and offering longer buying periods on credit in order to undercut the competition, enabled the Gujaratis to gain a foothold in Antwerp. Many of the early traders also mention English as the international language of diamonds further facilitating their entry into the field.

This foothold has now expanded to such an extent, that in the latest elections to the Antwerp World Diamond Centre in 2012, five out of the six representatives elected to the board were Gujarati. In 2014, a Gujarati businessman was nominated vice president.

Dynasty

However, when we speak about Gujaratis in the diamond industry in Antwerp, we are in fact referring to just two communities which have come to dominate the trade &ndash; the Palanpuri Jains and the Katiawadi Patels. The latter are a community that in just one generation has distinguished itself with a dizzying rate of social mobility. The Katiawadi Patels were once agricultural labourers who moved to Surat (Gurjarat&rsquo;s diamond polishing centre), in order to escape drought. They started off as cutters and polishers, but quickly moved up the ranks and over time accumulated enough capital to open their own factories. They were able to use their contacts with Palanpuri Jains in order to first establish themselves in Antwerp. Once they did, they rapidly expanded and now rival the Jain Gujarati traders there.

Although the Patels did not arrive with the same level of financial capital as the Jains, their control of diamond polishing in Surat means that their climb within the industry is secure, and indeed will continue to grow with time. Currently, most factory owners and managers in Surat are Patel, with workers now coming from other states. In contrast to the Jains, whose sons have more business opportunities available to them, the sons of the Patels, who rely more heavily on diamonds, continue to enter into the diamond business in large numbers, starting from a young age to visit their fathers&rsquo; offices to learn the trade. The growing prominence of the Katiawadi Patel community has led to tension in India&acute;s diamond trading centre of Mumbai. In a recent hotly contested decision to move operations to Surat, where rent is cheaper, the diamond community was divided between the Palanpuri Jains, who prefer to remain in Mumbai, versus the Patels who pushed strongly to shift to Surat.

<figure class="align-left zoomable"><a href="https://images.theconversation.com/files/61534/original/xkfhg8k4-1413204078.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=1000&amp;fit=clip"><img alt="" src="https://images.theconversation.com/files/61534/original/xkfhg8k4-1413204078.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=237&amp;fit=clip" /></a>

<figcaption>
Modi presses the flesh in DC. <a class="source" href="https://www.flickr.com/photos/speakerboehner/15224182070/in/photolist-nomtk8-oUoSsc-oUEyAn-oUCEHU-nGb7MK-bDAXVB-pbB5FQ-pt6KxR-pv25px-pbBRJx-pr4QnN-nY7uCq-ofzgbv-odxg1s-nExNwv-nb79JP-nb7tLz-nb7u74-nb7uva-nvj26p-ndPvyA-nmYMyV-pysv9V-oStUFZ-nbENeg-jcNm8u-6it5AR-pciUVL-nKRfzm-p9exDT-pqsq1M-p9ex5M-eLPE2i-jcKxHM-ooJ1pp-nKH9T5-nKRfTN-eM1ZdQ-ntrMMv-fSjRg9-mZPYSr-nHZC1W-nKRFA1-nHRbhh-ntoWeg-ntp17A-nKRhB7-nKTAGx-nKAwbt-nMF5XT">Speaker John Boehner</a>, <a class="license" href="http://creativecommons.org/licenses/by/4.0/">CC BY</a>

The Gujarati-dominated diamond industry has recently been receiving more attention from one of their own, India&rsquo;s new PM Narendra Modi. The 2014 budget passed by the Indian government gave a strong fillip to the diamond industry in the region, by raising custom duties on the import of polished and semi-polished stones, which will protect local polishing jobs (the diamond industry employs 500,000 people in Gujarat). The Modi government has also recently announced that it will be building a fast train linking Mumbai to Ahmedabad, which will cut the current travel time of seven hours to just over two hours. Gujarati traders in Antwerp eagerly await a visit from Modi, in whom they have invested high hopes for boosting the diamond industry. Although based in Antwerp, the diamond business is intricately linked to the Indian economy, immediately affected by Indian policy, and frequently connected to transnational family businesses that span multiple continents. The industry faces a number of challenges, from growing competition from the internet and from China/Hong Kong, to the rise of synthetic diamonds, and the decision by De Beers, the largest company by revenue, to move the sorting and trading of rough stones from London to Botswana.

However, in order to continue to shine, both Gujarati communities would do well to look towards a group that is currently completely overlooked in the diamond business: women. Daughters are not encouraged to enter the diamond trade, with many traders claiming that they are simply &ldquo;not interested&rdquo;, and the few that do, are not taken seriously and consequently drop out when they get married. The diamond industry in Antwerp is currently even more male dominated than most national armies. By not cultivating the talent and skills of their daughters, Gujaratis are losing out on even more sparkle.

&nbsp;
</figcaption>
</figure>

This article was originally published on <a href="http://theconversation.com" rel="nofollow" target="blank">The Conversation</a>. Read the <a href="https://theconversation.com/the-rise-and-rise-of-belgiums-indian-diamond-dynasties-32332" rel="nofollow" target="blank">original article</a>.

(Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL)&nbsp; &nbsp;

Although based in Antwerp, the diamond business is intricately linked to the Indian economy, immediately affected by Indian policy, and frequently connected to transnational family businesses that span multiple continents.

From the outside, Number 2 Hoveniersstraat Street in Antwerp is a nondescript office block. Only the clusters of businessmen speaking in Gujarati on their mobile phones or with each other, give any indication of the hive of activity inside. In the lobby, streams of people shuttle back and forth through the electronic barriers while a queue of visitors waits to have their photo taken and their fingerprints scanned in order to receive a temporary ID card. The business is diamonds. It is a scene repeated elsewhere in the city, and it represents the remarkable and growing dominance of the Indian diaspora in a famous local industry. As you look along the names on the office doors, what is striking are the names. Whereas a generation ago, the vast majority of them were Jewish, today, a significant majority are of Indian, and in particular, Gujarati origin. Names like Mehta and Patel are particularly common. Indeed, while the orthodox Jewish presence in Antwerp is still highly visible, the numbers have dwindled over time, as a new generation of young and dynamic entrepreneurs from the Gujarat have displaced them. It has been unexpected, so what is the secret to their success? The diamond industry cannot enforce written contracts – diamonds are easily portable, universally valuable and virtually untraceable, and state courts are incapable of enforcing executory contracts for diamond sales. It operates on credit, relies on trust, and hence favours tightly knit community and family-based business networks. The Orthodox Jewish community in Antwerp had long relied on the effective social control mechanisms of their community in order to ensure trust, with anyone seeking to cheat seeing their reputation and hence ability to do business quickly destroyed. Gujarati business communities operate along similar lines, with strong family networks and a high incidence of marriage within their ethnic group. In the Gujarati case however, an additional source of community cohesion, support and solidarity comes from their caste community. Building from the bottom My interviews with Gujarati traders show that beginning in the 1960s, the first Gujaratis, from the Jain community and known as Palanpuri Jains, from the area of Palanpur in Gujarat, began to arrive in Antwerp, the world’s biggest trading hub for rough diamonds. The Palanpuri Jains are a historic “business community” in India that has traditionally engaged in trade and hence their first foray into Antwerp was one based on capital and prior experience on the polishing side of the diamond trade in India. The Gujarati Jains took advantage of two key factors to enter into the closed world of Antwerp’s diamond industry: they started to specialise in smaller, lower-value stones, and used the cheap labour and excellent skill of Surat’s diamond cutters and polishers to produce diamonds that had larger market potential. Thus, Gujaratis were able, as one trader put it: “to polish in rupees and sell in dollars”. These two factors, along with others, such as initially buying from source and offering longer buying periods on credit in order to undercut the competition, enabled the Gujaratis to gain a foothold in Antwerp. Many of the early traders also mention English as the international language of diamonds further facilitating their entry into the field. This foothold has now expanded to such an extent, that in the latest elections to the Antwerp World Diamond Centre in 2012, five out of the six representatives elected to the board were Gujarati. In 2014, a Gujarati businessman was nominated vice president. Dynasty However, when we speak about Gujaratis in the diamond industry in Antwerp, we are in fact referring to just two communities which have come to dominate the trade – the Palanpuri Jains and the Katiawadi Patels. The latter are a community that in just one generation has distinguished itself with a dizzying rate of social mobility. The Katiawadi Patels were once agricultural labourers who moved to Surat (Gurjarat’s diamond polishing centre), in order to escape drought. They started off as cutters and polishers, but quickly moved up the ranks and over time accumulated enough capital to open their own factories. They were able to use their contacts with Palanpuri Jains in order to first establish themselves in Antwerp. Once they did, they rapidly expanded and now rival the Jain Gujarati traders there. Although the Patels did not arrive with the same level of financial capital as the Jains, their control of diamond polishing in Surat means that their climb within the industry is secure, and indeed will continue to grow with time. Currently, most factory owners and managers in Surat are Patel, with workers now coming from other states. In contrast to the Jains, whose sons have more business opportunities available to them, the sons of the Patels, who rely more heavily on diamonds, continue to enter into the diamond business in large numbers, starting from a young age to visit their fathers’ offices to learn the trade. The growing prominence of the Katiawadi Patel community has led to tension in India´s diamond trading centre of Mumbai. In a recent hotly contested decision to move operations to Surat, where rent is cheaper, the diamond community was divided between the Palanpuri Jains, who prefer to remain in Mumbai, versus the Patels who pushed strongly to shift to Surat. Modi presses the flesh in DC. Speaker John Boehner, CC BY The Gujarati-dominated diamond industry has recently been receiving more attention from one of their own, India’s new PM Narendra Modi. The 2014 budget passed by the Indian government gave a strong fillip to the diamond industry in the region, by raising custom duties on the import of polished and semi-polished stones, which will protect local polishing jobs (the diamond industry employs 500,000 people in Gujarat). The Modi government has also recently announced that it will be building a fast train linking Mumbai to Ahmedabad, which will cut the current travel time of seven hours to just over two hours. Gujarati traders in Antwerp eagerly await a visit from Modi, in whom they have invested high hopes for boosting the diamond industry. Although based in Antwerp, the diamond business is intricately linked to the Indian economy, immediately affected by Indian policy, and frequently connected to transnational family businesses that span multiple continents. The industry faces a number of challenges, from growing competition from the internet and from China/Hong Kong, to the rise of synthetic diamonds, and the decision by De Beers, the largest company by revenue, to move the sorting and trading of rough stones from London to Botswana. However, in order to continue to shine, both Gujarati communities would do well to look towards a group that is currently completely overlooked in the diamond business: women. Daughters are not encouraged to enter the diamond trade, with many traders claiming that they are simply “not interested”, and the few that do, are not taken seriously and consequently drop out when they get married. The diamond industry in Antwerp is currently even more male dominated than most national armies. By not cultivating the talent and skills of their daughters, Gujaratis are losing out on even more sparkle. This article was originally published on The Conversation. Read the original article. (Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL)

Opinion: Nirav Modi and Antwerp's Indian diamond dynasties

India&#39;s second-largest state-run lender, Punjab National Bank (PNB), has detected <a href="http://www.wionews.com/india-news/enforcement-directorate-raids-billionaire-jeweller-nirav-modis-office-showrooms-32941">fraudulent transactions worth Rs 280 crore</a> in a case that could affect more banks and raise fresh questions about lending procedures at Indian banks mired in soured debt. The entire scam is believed to total up&nbsp; to about Rs 11,400 crore.

This could be the <a href="http://www.wionews.com/india-news/scam-began-in-2011-bank-discovered-it-in-january-2018-pnb-md-32969">biggest banking fraud</a> in India as its quantum is bigger than an estimated 9,000 crore scam at erstwhile Satyam computers.

In 2015, Bank of Baroda - another public sector bank - had brought to light a scam in which two Delhi-based businessmen cheated it of Rs 6,000 crore.

At the centre of the PNB scam is <a href="http://www.wionews.com/india-news/pnb-scam-nirav-modi-left-india-on-january-1-say-officials-32966">Nirav Modi</a>, a billionaire jeweller. Here is a brief profile of the man:

<ol>
	<li>Modi is one of India&#39;s richest men. He is worth $1.73 billion according to Forbes, placing him 85th on India&#39;s rich list.</li>
	<li>The 47-year-old is the founder of jewellery giant Firestar Diamond. His high-end Nirav Modi brand has stores in several of the world&#39;s major cities - ranging from upmarket Defence Colony in Delhi to Mumbai, New York, London and Macau.</li>
	<li>Nirav Modi comes from a family of diamond brokers in Antwerp, Belgium. He studied finance at Wharton but dropped out within a year.</li>
	<li>After dropping out of Wharton, Modi came to Mumbai to learn the nuances of trading from his uncle Mehul Choksi, chairman of Gitanjali Gems.</li>
	<li>Bollywood star Priyanka Chopra is the brand ambassador of his company.</li>
	<li>Despite making a late entry in the retail business in 2010, Nirav quickly made a name for himself as the jeweller to the stars. By 2013, he had made it to the Forbes billionaire list.</li>
	<li>Just last year, he bought an iconic Mumbai property - the rhythm house music shop - for a reported price of nearly $5 million to set up his own store at the prime Kala Ghoda property.</li>
</ol>

This could be the biggest banking fraud in India as its quantum is bigger than an estimated 9,000 crore scam at erstwhile Satyam computers.

India's second-largest state-run lender, Punjab National Bank (PNB), has detected fraudulent transactions worth Rs 280 crore in a case that could affect more banks and raise fresh questions about lending procedures at Indian banks mired in soured debt. The entire scam is believed to total up to about Rs 11,400 crore. This could be the biggest banking fraud in India as its quantum is bigger than an estimated 9,000 crore scam at erstwhile Satyam computers. In 2015, Bank of Baroda - another public sector bank - had brought to light a scam in which two Delhi-based businessmen cheated it of Rs 6,000 crore. At the centre of the PNB scam is Nirav Modi, a billionaire jeweller. Here is a brief profile of the man: Modi is one of India's richest men. He is worth $1.73 billion according to Forbes, placing him 85th on India's rich list. The 47-year-old is the founder of jewellery giant Firestar Diamond. His high-end Nirav Modi brand has stores in several of the world's major cities - ranging from upmarket Defence Colony in Delhi to Mumbai, New York, London and Macau. Nirav Modi comes from a family of diamond brokers in Antwerp, Belgium. He studied finance at Wharton but dropped out within a year. After dropping out of Wharton, Modi came to Mumbai to learn the nuances of trading from his uncle Mehul Choksi, chairman of Gitanjali Gems. Bollywood star Priyanka Chopra is the brand ambassador of his company. Despite making a late entry in the retail business in 2010, Nirav quickly made a name for himself as the jeweller to the stars. By 2013, he had made it to the Forbes billionaire list. Just last year, he bought an iconic Mumbai property - the rhythm house music shop - for a reported price of nearly $5 million to set up his own store at the prime Kala Ghoda property.

Who is Nirav Modi, the billionaire jeweller at centre of Rs 11,400 crore PNB scam

Punjab and <a href="http://www.wionews.com/india-news/enforcement-directorate-raids-billionaire-jeweller-nirav-modis-office-showrooms-32941">National Bank(PNB) managing director&nbsp;Sunil Mehta </a>said Nirav Modi&#39;s 280 crore&nbsp;scam&nbsp;started in 2011.

&quot;We exposed <a href="http://www.wionews.com/india-news/pnb-scam-did-nirav-modi-flee-the-country-before-fir-32948">the scam first and informed the</a> CBI this month,&quot; the managing director said, adding,&quot;the bank will honour all bona fide commitments.&quot;

Speaking to reporters at a press conference, Mehta said the bank detected the fraud in January.

&quot;The bank has named an ex-employee in the case,&quot; he said.

&quot;We will find all the guilty, we believe in clean banking,&quot; the PNB MD&nbsp;added.

Meanwhile, the scam took a political turn as the Congress attacked the BJP with spokesperson Randeep Surjewala declaring that it was the biggest bank loot in the last 70 years.

&quot;Another fraudster fled the nation,&quot; Surjewala said referring to Vijay Mallya who fled the country two years ago.

Speaking to reporters at a press conference, Mehta said the bank detected the fraud in January.

Punjab and National Bank(PNB) managing director Sunil Mehta said Nirav Modi's 280 crore scam started in 2011. "We exposed the scam first and informed the CBI this month," the managing director said, adding,"the bank will honour all bona fide commitments." Speaking to reporters at a press conference, Mehta said the bank detected the fraud in January. "The bank has named an ex-employee in the case," he said. "We will find all the guilty, we believe in clean banking," the PNB MD added. Meanwhile, the scam took a political turn as the Congress attacked the BJP with spokesperson Randeep Surjewala declaring that it was the biggest bank loot in the last 70 years. "Another fraudster fled the nation," Surjewala said referring to Vijay Mallya who fled the country two years ago.

'We exposed the scam first and informed CBI', says PNB managing director

Billionaire jeweller <a href="http://www.wionews.com/india-news/enforcement-directorate-raids-billionaire-jeweller-nirav-modis-office-showrooms-32941">Nirav Modi who is suspected </a>of cheating in Punjab National Bank may have fled the country days before the Enforcement Directorate filed an FIR against him.

The police are <a href="http://www.wionews.com/india-news/sensex-sheds-144-points-as-banking-stocks-tumble-32856">trying to track down the billionaire </a>even as media reports say he may be in Switzerland.

As the police and ED officials try to track Nirav, raids are being conducted in Delhi and Mumbai on his glitzy showrooms.

Union Bank reportedly gave a loan of Rs 2,300 crore to the billionaire jeweller with Allahabad Bank forwarding Rs 2,000 loan.

SBI&#39;s foreign arm lent Nirav Modi Rs 9,60 crore, reports said.&nbsp;

Nirav Modi has apparently written to banks promising to repay the &quot;loans&quot; and is reportedly&nbsp;ready to pay up Rs 5,000 crore.

Meanwhile, Delhi CM Arvind Kejriwal waded into the controversy accusing the BJP government of collusion.

In his tweet, the Delhi CM asked: &quot;Is it possible to believe that he(Nirav Modi )or Vijay Mallya left the country without active connivance of BJP govt?&quot;

<div class="ui-state-default" contenteditable="false">
<div class="twitter-block" draggable="false">
<blockquote class="twitter-tweet" data-lang="en">
Is it possible to believe that he or vijay mallya left the country without active connivance of BJP govt? <a href="https://t.co/6iMFf9VAkF">https://t.co/6iMFf9VAkF</a>
&mdash; Arvind Kejriwal (@ArvindKejriwal) <a href="https://twitter.com/ArvindKejriwal/status/964023902753128448?ref_src=twsrc%5Etfw">February 15, 2018</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></div>
<a class="close-mark close-div" href="#" id="jqclosemark">&times;</a></div>

As the scam&nbsp;gets bigger, PNB officials are hardpressed to explain the scam which has reportedly gone undetected for several years.

The police are trying to track down the billionaire even as media reports say he may be Switzerland.

Billionaire jeweller Nirav Modi who is suspected of cheating in Punjab National Bank may have fled the country days before the Enforcement Directorate filed an FIR against him. The police are trying to track down the billionaire even as media reports say he may be in Switzerland. As the police and ED officials try to track Nirav, raids are being conducted in Delhi and Mumbai on his glitzy showrooms. Union Bank reportedly gave a loan of Rs 2,300 crore to the billionaire jeweller with Allahabad Bank forwarding Rs 2,000 loan. SBI's foreign arm lent Nirav Modi Rs 9,60 crore, reports said. Nirav Modi has apparently written to banks promising to repay the "loans" and is reportedly ready to pay up Rs 5,000 crore. Meanwhile, Delhi CM Arvind Kejriwal waded into the controversy accusing the BJP government of collusion. In his tweet, the Delhi CM asked: "Is it possible to believe that he(Nirav Modi )or Vijay Mallya left the country without active connivance of BJP govt?" Is it possible to believe that he or vijay mallya left the country without active connivance of BJP govt? https://t.co/6iMFf9VAkF — Arvind Kejriwal (@ArvindKejriwal) February 15, 2018 × As the scam gets bigger, PNB officials are hardpressed to explain the scam which has reportedly gone undetected for several years.

PNB scam: Did Nirav Modi flee the country before FIR?

The Enforcement<a href="http://www.wionews.com/india-news/pnb-scam-enforcement-directorate-registers-money-laundering-case-against-billionaire-nirav-modi-32924"> Directorate(ED) today raided billionaire jeweller </a>Nirav Modi&#39;s properties across the country after filing money laundering case for cheating the Punjab National Bank (PNB) of Rs 280 crores.&nbsp;

The ED raided the showroom and office in Mumbai&#39;s Kala Ghoda as reports indicated Nirav Modi had fled India before an&nbsp;FIR was lodged by Indian officials.

Raids are also being conducted in Mumbai&#39;s Peddar road where Nirav Modi&#39;s residence is located and Opera house which is the location of one of his partners.

Another office at Kamla Mills was also raided by ED officials.

In Delhi, ED conducted raids in upmarket Defence Colony area where Nirav Modi&#39;s showroom is located.

<div class="ui-state-default" contenteditable="false">
<div class="twitter-block" draggable="false">
<blockquote class="twitter-tweet" data-lang="en">
PNB Fraud Case: ED team at Nirav Modi&#39;s showroom &amp; office in Mumbai&#39;s Kala Ghoda. <a href="https://t.co/3YQq4lyKNj">pic.twitter.com/3YQq4lyKNj</a>
&mdash; ANI (@ANI) <a href="https://twitter.com/ANI/status/964014597593337856?ref_src=twsrc%5Etfw">February 15, 2018</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></div>
<a class="close-mark close-div" href="#" id="jqclosemark">&times;</a></div>

As a result of the scam, PNB stocks today nosedived 10 per cent in opening trade.

Punjab National Bank (PNB) has cautioned other banks about the &quot;modus operandi of the scam&quot;. Reports say&nbsp;Union Bank, SBI Overseas Bank, Axis Bank and Allahabad Bank have lent money to Nirav Modi.

&quot;It has been reported through a preliminary investigation that the suspected fraud has been carried out by the perpetrators in collusion with the staff of one of&nbsp;our branches in Mumbai,&quot; PNB said.

The Reserve Bank of India(RBI) and the Securities and Exchange Board of India(SEBI) are likely to meet Hong Kong officials relating to the over Rs 11,000 crore fraud at the state-run bank.

SEBI would also be getting in touch with the Securities and Futures Commission (SFC).

According to the officials, the LoUs were mostly used for availing credit at Hong Kong-based branches of some other Indian banks, PTI reported.

Punjab National Bank (PNB) has cautioned other banks about the "modus operandi of the scam".

The Enforcement Directorate(ED) today raided billionaire jeweller Nirav Modi's properties across the country after filing money laundering case for cheating the Punjab National Bank (PNB) of Rs 280 crores. The ED raided the showroom and office in Mumbai's Kala Ghoda as reports indicated Nirav Modi had fled India before an FIR was lodged by Indian officials. Raids are also being conducted in Mumbai's Peddar road where Nirav Modi's residence is located and Opera house which is the location of one of his partners. Another office at Kamla Mills was also raided by ED officials. In Delhi, ED conducted raids in upmarket Defence Colony area where Nirav Modi's showroom is located. PNB Fraud Case: ED team at Nirav Modi's showroom & office in Mumbai's Kala Ghoda. pic.twitter.com/3YQq4lyKNj — ANI (@ANI) February 15, 2018 × As a result of the scam, PNB stocks today nosedived 10 per cent in opening trade. Punjab National Bank (PNB) has cautioned other banks about the "modus operandi of the scam". Reports say Union Bank, SBI Overseas Bank, Axis Bank and Allahabad Bank have lent money to Nirav Modi. "It has been reported through a preliminary investigation that the suspected fraud has been carried out by the perpetrators in collusion with the staff of one of our branches in Mumbai," PNB said. The Reserve Bank of India(RBI) and the Securities and Exchange Board of India(SEBI) are likely to meet Hong Kong officials relating to the over Rs 11,000 crore fraud at the state-run bank. SEBI would also be getting in touch with the Securities and Futures Commission (SFC). According to the officials, the LoUs were mostly used for availing credit at Hong Kong-based branches of some other Indian banks, PTI reported.

Watch: Enforcement Directorate raids billionaire jeweller Nirav Modi's office & showrooms

Billionaire jewellery designer Nirav Modi had left the country on January 1 much before the CBI received a complaint from Punjab National Bank on January 29 about a Rs 280-crore fraud, officials said.

His brother Nishal, a Belgian citizen, also left the country on January 1, while wife Ami, a US citizen, and business partner Mehul Choksi, the Indian promoter of Gitanjali jewellery chain, departed on January 6, the officials said.

The agency issued a look out circular against all the four after registering the first FIR against them, they said.

The Enforement Direcotorate meanwhile has&nbsp;written&nbsp;to the Ministry of External Affairs asking that the passports of&nbsp;Nirav Modi, his wife Ami Modi, and Mehul Choksi, the Indian promoter of Gitanjali Jewels,&nbsp;be revoked.&nbsp;

A look out circular is issued by enforcement agencies to all exit and entry ports to inform them about the movement of an accused.&nbsp;

Also read: <a href="http://www.wionews.com/india-news/who-is-nirav-modi-the-billionaire-jeweller-at-centre-of-rs-11000-crore-scam-32970" target="_blank">Who is Nirav Modi, billionaire jeweller at centre of Rs 11,400 crore scam</a>

Also read:&nbsp;<a href="http://www.wionews.com/india-news/pnb-fraud-after-nirav-modi-3-other-big-jewellers-come-under-the-scanner-32902?src=ilaw" target="_blank">After Nirav Modi, 3 other big jewellers come under the scanner</a>

Modi, who is believed to be in Switzerland, was also present in a group photo of Indian CEOs with Prime Minister Narendra Modi, issued by the Press Information Bureau, in World Economic Forum on January 23, six days before the bank sent its first complaint against him to the CBI, according to the officials.

The diamantaire is an India citizen but his brother Nishal and wife Ami are not Indian nationals, the officials said.

Nirav Modi, a regular feature on the lists of rich and famous Indians since 2013, was booked by the CBI, along with wife, brother and business partner Choksi on January 31, for allegedly cheating the state-run Punjab National Bank to the tune of Rs 280 crore.

The bank has sent two more complaints to the CBI on Tuesday, saying the scam was worth more than Rs 11,400 crore.&nbsp;

Modi's brother Nishal, a Belgian citizen, also left the country on January 1. His wife Ami, a US citizen, and business partner Mehul Choksi, the Indian promoter of Gitanjali Jewels, left on January 6, the officials said

Billionaire jewellery designer Nirav Modi had left the country on January 1 much before the CBI received a complaint from Punjab National Bank on January 29 about a Rs 280-crore fraud, officials said. His brother Nishal, a Belgian citizen, also left the country on January 1, while wife Ami, a US citizen, and business partner Mehul Choksi, the Indian promoter of Gitanjali jewellery chain, departed on January 6, the officials said. The agency issued a look out circular against all the four after registering the first FIR against them, they said. The Enforement Direcotorate meanwhile has written to the Ministry of External Affairs asking that the passports of Nirav Modi, his wife Ami Modi, and Mehul Choksi, the Indian promoter of Gitanjali Jewels, be revoked. A look out circular is issued by enforcement agencies to all exit and entry ports to inform them about the movement of an accused. Also read: Who is Nirav Modi, billionaire jeweller at centre of Rs 11,400 crore scam Also read: After Nirav Modi, 3 other big jewellers come under the scanner Modi, who is believed to be in Switzerland, was also present in a group photo of Indian CEOs with Prime Minister Narendra Modi, issued by the Press Information Bureau, in World Economic Forum on January 23, six days before the bank sent its first complaint against him to the CBI, according to the officials. The diamantaire is an India citizen but his brother Nishal and wife Ami are not Indian nationals, the officials said. Nirav Modi, a regular feature on the lists of rich and famous Indians since 2013, was booked by the CBI, along with wife, brother and business partner Choksi on January 31, for allegedly cheating the state-run Punjab National Bank to the tune of Rs 280 crore. The bank has sent two more complaints to the CBI on Tuesday, saying the scam was worth more than Rs 11,400 crore.

PNB scam: Nirav Modi left India on January 1, thought to be in Switzerland

Punjab National Bank stunned the country&rsquo;s financial sector when it announced this week it had discovered fraudulent transactions worth Rs 11,400 crore at a single branch in Mumbai.&nbsp;

Nirav Modi had carried out &ldquo;fraudulent transactions&rdquo; worth over Rs 11,400 crore by acquiring fake bank guarantees and showing it to other banks in order to extract more money.

Modi had been using &lsquo;fake bank guarantees&rsquo; as proof to other banks to extract money from them.

What is bank guarantee?

A bank guarantee from a lending institution ensuring that the liabilities of a debtor will be met. In other words, if the debtor fails to settle a debt, the bank will cover it.

Following is an explainer on the PNB fraud and its implications for other lenders and India&rsquo;s banking sector:

What is the fraud allegation about?

On Jan. 29, a PNB official from Mumbai filed a criminal complaint with India&rsquo;s federal investigative agency against three companies and four people, including billionaire jeweller Nirav Modi and Mehul Choksi, the managing director of Gitanjali Gems Ltd, saying they had defrauded the bank and caused a loss of Rs 280 crore.

The bank alleged two junior employees at the Mumbai branch had helped the companies and people managing them get &ldquo;letters of undertaking&rdquo; (LoUs) from it without having a sanctioned credit limit or maintaining funds &ldquo;on margin&rdquo;.

The LOUs were used to obtain short-term credit from overseas branches of other Indian banks, PNB said.

Based on the complaint, the Central Bureau of Investigation (CBI) registered a preliminary case against the companies and the people named on Jan. 31 and PNB said a detailed probe was underway.

On Wednesday, PNB said in a regulatory filing it had discovered fraudulent and unauthorized transactions totalling Rs 11,400 crore at the Mumbai branch. Investigators have said the latest disclosure was related to the earlier case filed.&nbsp;

How did the fraud come to light?

PNB says that on January 16 the accused firms presented a set of import documents to the Mumbai branch and requested buyers&rsquo; credit to pay overseas suppliers. Since they had no pre-arranged credit limit, the branch official asked the companies to put down the full amount as collateral so the bank could issue LOUs to authorize the credit.

When the firms argued that they had used such facilities in the past without keeping any money on margin, PNB scanned through records and found no trace of any transactions, according to the bank&rsquo;s account.

It then found that two junior employees had issued LOUs on the SWIFT interbank messaging system without entering the transactions on the bank&rsquo;s own system. Such transactions went on for years without detection, PNB said.

Banking sources have said in some banks the SWIFT system, which is used for international transactions, and the core banking system works independently of each other.&nbsp;

In PNB&rsquo;s case, it said the outstanding LoUs were not available on its core banking system run on Infosys&rsquo;s Finacle software, thus the LoUs issued went undetected.

Who are the people involved in it?

PNB has accused three companies - Solar Exports, Stellar Diamonds and Diamond R US - it said belong to Nirav Modi, a high-end jeweller who runs his eponymous Nirav Modi stores that spread from New York to Hong Kong. Modi is worth $1.73 billion according to Forbes rankings.

Modi&rsquo;s companies colluded with the bank staff, PNB said, adding that it suspected some officials at foreign branches of other Indian banks that extended credit were also involved.

It also named Gitanjali Gems, Gili India and Nakshatra - companies promoted by another jeweller, Mehul Choksi, who is Modi&rsquo;s uncle.

Gitanjali last week denied Choksi had any involvement with the alleged fraud, saying he would take &ldquo;necessary legal steps&rdquo; to get his name removed from the CBI case.

Modi has not commented on the case. His flagship Firestar Diamond has said it had no involvement.&nbsp; 
 
PNB said it has begun criminal action against two staff members and suspended some others. Reuters was not immediately able to contact the two staff members.&nbsp;

What are the authorities doing?

Federal investigators swung into action on Thursday, conducting searches at PNB branches and also at Nirav Modi&rsquo;s home and offices, local media said.

The finance ministry has issued an advisory to all banks to review their large customer exposures, according to media reports. The Enforcement Directorate, which investigates frauds involving foreign exchange transactions, was also conducting a probe, Mint newspaper said.

Who assumes the liability?

PNB has said the transactions are &ldquo;contingent&rdquo; in nature, and it will decide on the liability based on the law and the genuineness of underlying transactions.

Banking sources have said several other banks who have extended loans based on the PNB LoUs that were later found to be fraudulent are at risk of losing money.

Some of the banks say PNB is liable to pay since it issued the LoUs, although PNB, in a February 12 &ldquo;caution notice&rdquo; addressed to chief executives of 30 banks, including two foreign banks, said the other banks also have a share in the blame as they &ldquo;overlooked&rdquo; certain Indian central bank rules.

It also said none of the overseas branches of India-based banks had shared with PNB any documents or information at the time of extending buyers&rsquo; credit to the companies.

PNB said Nirav Modi had written to the bank but had yet to offer any formal proposal for a repayment.&nbsp;

Nirav Modi had been using ‘fake bank guarantees’ as proof to other banks to extract money from them

Punjab National Bank stunned the country’s financial sector when it announced this week it had discovered fraudulent transactions worth Rs 11,400 crore at a single branch in Mumbai. Nirav Modi had carried out “fraudulent transactions” worth over Rs 11,400 crore by acquiring fake bank guarantees and showing it to other banks in order to extract more money. Modi had been using ‘fake bank guarantees’ as proof to other banks to extract money from them. What is bank guarantee? A bank guarantee from a lending institution ensuring that the liabilities of a debtor will be met. In other words, if the debtor fails to settle a debt, the bank will cover it. Following is an explainer on the PNB fraud and its implications for other lenders and India’s banking sector: What is the fraud allegation about? On Jan. 29, a PNB official from Mumbai filed a criminal complaint with India’s federal investigative agency against three companies and four people, including billionaire jeweller Nirav Modi and Mehul Choksi, the managing director of Gitanjali Gems Ltd, saying they had defrauded the bank and caused a loss of Rs 280 crore. The bank alleged two junior employees at the Mumbai branch had helped the companies and people managing them get “letters of undertaking” (LoUs) from it without having a sanctioned credit limit or maintaining funds “on margin”. The LOUs were used to obtain short-term credit from overseas branches of other Indian banks, PNB said. Based on the complaint, the Central Bureau of Investigation (CBI) registered a preliminary case against the companies and the people named on Jan. 31 and PNB said a detailed probe was underway. On Wednesday, PNB said in a regulatory filing it had discovered fraudulent and unauthorized transactions totalling Rs 11,400 crore at the Mumbai branch. Investigators have said the latest disclosure was related to the earlier case filed. How did the fraud come to light? PNB says that on January 16 the accused firms presented a set of import documents to the Mumbai branch and requested buyers’ credit to pay overseas suppliers. Since they had no pre-arranged credit limit, the branch official asked the companies to put down the full amount as collateral so the bank could issue LOUs to authorize the credit. When the firms argued that they had used such facilities in the past without keeping any money on margin, PNB scanned through records and found no trace of any transactions, according to the bank’s account. It then found that two junior employees had issued LOUs on the SWIFT interbank messaging system without entering the transactions on the bank’s own system. Such transactions went on for years without detection, PNB said. Banking sources have said in some banks the SWIFT system, which is used for international transactions, and the core banking system works independently of each other. In PNB’s case, it said the outstanding LoUs were not available on its core banking system run on Infosys’s Finacle software, thus the LoUs issued went undetected. Who are the people involved in it? PNB has accused three companies - Solar Exports, Stellar Diamonds and Diamond R US - it said belong to Nirav Modi, a high-end jeweller who runs his eponymous Nirav Modi stores that spread from New York to Hong Kong. Modi is worth $1.73 billion according to Forbes rankings. Modi’s companies colluded with the bank staff, PNB said, adding that it suspected some officials at foreign branches of other Indian banks that extended credit were also involved. It also named Gitanjali Gems, Gili India and Nakshatra - companies promoted by another jeweller, Mehul Choksi, who is Modi’s uncle. Gitanjali last week denied Choksi had any involvement with the alleged fraud, saying he would take “necessary legal steps” to get his name removed from the CBI case. Modi has not commented on the case. His flagship Firestar Diamond has said it had no involvement. PNB said it has begun criminal action against two staff members and suspended some others. Reuters was not immediately able to contact the two staff members. What are the authorities doing? Federal investigators swung into action on Thursday, conducting searches at PNB branches and also at Nirav Modi’s home and offices, local media said. The finance ministry has issued an advisory to all banks to review their large customer exposures, according to media reports. The Enforcement Directorate, which investigates frauds involving foreign exchange transactions, was also conducting a probe, Mint newspaper said. Who assumes the liability? PNB has said the transactions are “contingent” in nature, and it will decide on the liability based on the law and the genuineness of underlying transactions. Banking sources have said several other banks who have extended loans based on the PNB LoUs that were later found to be fraudulent are at risk of losing money. Some of the banks say PNB is liable to pay since it issued the LoUs, although PNB, in a February 12 “caution notice” addressed to chief executives of 30 banks, including two foreign banks, said the other banks also have a share in the blame as they “overlooked” certain Indian central bank rules. It also said none of the overseas branches of India-based banks had shared with PNB any documents or information at the time of extending buyers’ credit to the companies. PNB said Nirav Modi had written to the bank but had yet to offer any formal proposal for a repayment.

PNB scam: How Punjab National Bank fell victim to country's biggest bank fraud?

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