As the Nirav <a href="http://www.wionews.com/india-news/pnb-fraud-cbi-sends-3-accused-pnb-officials-to-police-custody-33516">Modi-induced Punjab National Bank(PNB) scam</a> continued to take a toll on the banking system in India, the Reserve Bank of India(RBI) said it had alerted banks thrice on potential malicious use of SWIFT infrastructure since August 2016.

Society for<a href="http://www.wionews.com/india-news/photographs-of-pm-modi-with-nirav-modi-prove-nothing-amit-shah-33510"> Worldwide Interbank Financial Telecommunications</a> also called (SWIFT) are used by banks to facilitate safe transactions. The system allows banks to transact between each other especially when foreign currency is involved. It is reportedly used by over 200 countries and is a common banking tool well known for ensuring secure transaction.

However, in the PNB scam case, the SWIFT system has come under scrutiny with officials claiming it was widely misused by bankers who allegedly manipulated it to move funds in favour of Nirav Modi.

Five bank officials, including the two at the Mumbai branch, have so far been arrested. 
&nbsp; 
The alleged fraud occurred as one PNB deputy manager, with the assistance of one or more colleagues, issued over 100 fraudulent Letters of Undertaking &ndash; essentially guarantees sent to other banks so that they would provide loans to a customer.&nbsp;

After entering the transactions on the SWIFT messaging system, the official, who worked at the same branch from 2010 to 2017 despite normal bank practices of regular rotations - did not record them on PNB`s internal system, according to the bank`s complaint.

A PNB source said on Tuesday all its branches have now been asked to reconcile SWIFT messages with entries in their core banking system going back eight or nine years.&nbsp;

India&#39;s central bank said it had set up a panel under Y H Malegam to look into reasons behind incidents of frauds in banks.

The panel will also look into reasons for high divergence in NPA classification and provisioning by banks.

&nbsp;

 
<iframe allow="autoplay; encrypted-media" allowfullscreen="" frameborder="0" height="315" src="https://www.youtube.com/embed/AF6coGcVMNg" width="560"></iframe> 
&nbsp;

&nbsp;

Five bank officials, including the two at the Mumbai branch, have so far been arrested.

As the Nirav Modi-induced Punjab National Bank(PNB) scam continued to take a toll on the banking system in India, the Reserve Bank of India(RBI) said it had alerted banks thrice on potential malicious use of SWIFT infrastructure since August 2016. Society for Worldwide Interbank Financial Telecommunications also called (SWIFT) are used by banks to facilitate safe transactions. The system allows banks to transact between each other especially when foreign currency is involved. It is reportedly used by over 200 countries and is a common banking tool well known for ensuring secure transaction. However, in the PNB scam case, the SWIFT system has come under scrutiny with officials claiming it was widely misused by bankers who allegedly manipulated it to move funds in favour of Nirav Modi. Five bank officials, including the two at the Mumbai branch, have so far been arrested. The alleged fraud occurred as one PNB deputy manager, with the assistance of one or more colleagues, issued over 100 fraudulent Letters of Undertaking – essentially guarantees sent to other banks so that they would provide loans to a customer. After entering the transactions on the SWIFT messaging system, the official, who worked at the same branch from 2010 to 2017 despite normal bank practices of regular rotations - did not record them on PNB`s internal system, according to the bank`s complaint. A PNB source said on Tuesday all its branches have now been asked to reconcile SWIFT messages with entries in their core banking system going back eight or nine years. India's central bank said it had set up a panel under Y H Malegam to look into reasons behind incidents of frauds in banks. The panel will also look into reasons for high divergence in NPA classification and provisioning by banks.

Alerted banks thrice since 2016 on potential malicious use of SWIFT: RBI

Stocks staged a comeback in early trade with the BSE Sensex gaining over 157 points and the Nifty recapturing the 10,400-level on buying by investors in metal, capital goods, teck and IT stocks amid a mixed trend at other Asian Markets.

The 30-share Sensex recovered by 157.24 points, or 0.46 per cent, to 33,931.90 in opening trade. The index had lost 522.81 points in the previous two sessions.

Sectoral indices led by metal, capital goods, Teck and IT were trading in the green with gains of up to 0.75 per cent.

The broad-based NSE Nifty went up by 23.95 points or 0.23 per cent to 10,402.35.

Tata Steel rose up to 1.5 per cent in early trade after reports suggest the steel maker was leading bidder for debt-ridden Bhushan Steel.

IT stocks TCS, and Infosys also advanced up to 1.7 per cent on a weaker rupee.

Banking stocks ICICI Bank, Axis Bank and Yes Bank gained on value buying after recent losses.

Bharti Airtel, HDFC Ltd, L&amp;T, M&amp;M and ONGC also rose up to 1.4 per cent.

However, Punjab National Bank, embroiled in the Rs 11,300 crore scam, remained weak and shed another 3.31 per cent while Gitanjai Gems lost 9.91 per cent.

Brokers said buying by domestic institutional funds and investors amid a mixed trend at other Asian bourses improved the market sentiment.

Domestic institutional investors (DIIs) bought shares worth a net Rs 586.52 crore yesterday, as per provisional data.

Overseas, Asian stocks were trading mixed as Treasury yields climbed back toward recent four-year highs. Chinese markets will reopen on Thursday, 22 February. US markets remained closed yesterday, in observance of Presidents Day.

In the Asian region, Hong Kong&#39;s Hang Seng was up 0.66 per cent, while Japan&#39;s Nikkei was down 1.20 per cent in early trade today. Shanghai Composite remained closed for a public holiday.

The sensex had lost 522.81 points in the previous two sessions

Stocks staged a comeback in early trade with the BSE Sensex gaining over 157 points and the Nifty recapturing the 10,400-level on buying by investors in metal, capital goods, teck and IT stocks amid a mixed trend at other Asian Markets. The 30-share Sensex recovered by 157.24 points, or 0.46 per cent, to 33,931.90 in opening trade. The index had lost 522.81 points in the previous two sessions. Sectoral indices led by metal, capital goods, Teck and IT were trading in the green with gains of up to 0.75 per cent. The broad-based NSE Nifty went up by 23.95 points or 0.23 per cent to 10,402.35. Tata Steel rose up to 1.5 per cent in early trade after reports suggest the steel maker was leading bidder for debt-ridden Bhushan Steel. IT stocks TCS, and Infosys also advanced up to 1.7 per cent on a weaker rupee. Banking stocks ICICI Bank, Axis Bank and Yes Bank gained on value buying after recent losses. Bharti Airtel, HDFC Ltd, L&T, M&M and ONGC also rose up to 1.4 per cent. However, Punjab National Bank, embroiled in the Rs 11,300 crore scam, remained weak and shed another 3.31 per cent while Gitanjai Gems lost 9.91 per cent. Brokers said buying by domestic institutional funds and investors amid a mixed trend at other Asian bourses improved the market sentiment. Domestic institutional investors (DIIs) bought shares worth a net Rs 586.52 crore yesterday, as per provisional data. Overseas, Asian stocks were trading mixed as Treasury yields climbed back toward recent four-year highs. Chinese markets will reopen on Thursday, 22 February. US markets remained closed yesterday, in observance of Presidents Day. In the Asian region, Hong Kong's Hang Seng was up 0.66 per cent, while Japan's Nikkei was down 1.20 per cent in early trade today. Shanghai Composite remained closed for a public holiday.

Sensex recovers 157 points, Nifty above 10,400-mark

Dear Sir/Madam,

1. I refer to the extended discussions between us, and between my representatives and your officers. I also refer to my emails dated 13th and 15th February 2018.

2. In view of the recent actions by you, the authorities, and the extensive press coverage in the last couple of days, I must state my position to the extent it is relevant at this stage. The media suggests that the liability of the Nirav Modi Group is over Rs. 11,000 crores. As you are aware, this is entirely incorrect and the liability of the Nirav Modi Group is substantially less. Even after your complaint was filed, in good faith I wrote to you saying please sell/ allow me to sell Firestar Group, or their valuable assets, and recover the moneys that may be found due not just from Firestar Group, but also from the three firms. The valuation of the business was approximately Rs. 6,500 crores which could have helped reduce/discharge the debt to the banking system.

3. However, the erroneous liability resulted in a media frenzy led to immediate search and seizure of operations, which has in turn resulted in FirestarInternational Private Limited and Firestar Diamond International Private Limited effectively ceasing to be going concerns. This has thereby jeopardized our ability to discharge the dues of the group to the banks.

4. In light of this, it is necessary to reinstate some facts:

I. You have acknowledged that:

(a) The Buyers Credit Facility has been extended by PNB to the three partnership firms since several years. 
(b) There has been no default on the part of any of these firms over all these years. 
(c) Moneys have gone through PNB over all these years for the repayments of the advances given by the overseas branches of banks under the Buyers Credit. 
(d) FIPL and FDIPL have been profitable, enjoyed a high (A-) credit rating, and have never been in default to any bank, and its bankers are fully secured.

II. You are aware that:

(a) PNB has over the years been earning bank charges to the tune of crores of rupees on the Buyers Credit Facility extended by PNB to the three partnership firms. 
(b) The banks that have extended the money to the firm&rsquo;s buyers have been receiving payment in full, with interest, in time all these year.

5. Yesterday, FIPL and FDIPL&rsquo;s inventory has been seized by the authorities. As per press reports the valuation of the is Rs. 5,649 crores. These, and other assets of FIPL/FDIPL and the three firms (including receivables and assets seized) could have settled all the amounts due to banks. However, now that stage appears to have passed, and there is generally panic.

6. I urge you once again to be fair, and in the interests of transparency, justice, the banking system and India as a whole, support my efforts to make good all the amounts that are found due by my group to all banks.

7. In your complaint you have wrongly named my brother, who was not at all concerned with the operations of the three firms or FIPL (India) and FDIPL (India). My wife was not connected with any business operations at all and she has been wrongly named. My uncle is also wrongly named in this complaint since he has an independent and unconnected business from mine and none of us are aware or concerned with his dealings with your bank.

8. The matter is being described as India&rsquo;s largest banking fraud. This is far from the truth. Nirav Modi Group ran a legitimate luxury brand business and the brand had become India&rsquo;s foremost global luxury brand, standing side by side with some of the biggest jewellery brands in the world. In the anxiety to recover your dues immediately, despite my offer, your actions have destroyed my brand and the business and have now restricted your ability to recover all the dues leaving a trail of unpaid debts. Whatever may be the consequences I may face for my actions, the haste was, in my humble submission, unwarranted.

9. I would request you to permit salaries for FIPL and FDIPL to be paid for the 2200 employees from the balance lying in the current accounts. Our HR head will send you a breakup of the monthly salary.

Yours Sincerely,

Nirav Modi

Beleaguered businessman Nirav Modi, the alleged kingpin of the largest banking scam in the country's history, has said PNB's "overzealousness" shut the doors on his ability to clear the dues.

Dear Sir/Madam, 1. I refer to the extended discussions between us, and between my representatives and your officers. I also refer to my emails dated 13th and 15th February 2018. 2. In view of the recent actions by you, the authorities, and the extensive press coverage in the last couple of days, I must state my position to the extent it is relevant at this stage. The media suggests that the liability of the Nirav Modi Group is over Rs. 11,000 crores. As you are aware, this is entirely incorrect and the liability of the Nirav Modi Group is substantially less. Even after your complaint was filed, in good faith I wrote to you saying please sell/ allow me to sell Firestar Group, or their valuable assets, and recover the moneys that may be found due not just from Firestar Group, but also from the three firms. The valuation of the business was approximately Rs. 6,500 crores which could have helped reduce/discharge the debt to the banking system. 3. However, the erroneous liability resulted in a media frenzy led to immediate search and seizure of operations, which has in turn resulted in FirestarInternational Private Limited and Firestar Diamond International Private Limited effectively ceasing to be going concerns. This has thereby jeopardized our ability to discharge the dues of the group to the banks. 4. In light of this, it is necessary to reinstate some facts: I. You have acknowledged that: (a) The Buyers Credit Facility has been extended by PNB to the three partnership firms since several years. (b) There has been no default on the part of any of these firms over all these years. (c) Moneys have gone through PNB over all these years for the repayments of the advances given by the overseas branches of banks under the Buyers Credit. (d) FIPL and FDIPL have been profitable, enjoyed a high (A-) credit rating, and have never been in default to any bank, and its bankers are fully secured. II. You are aware that: (a) PNB has over the years been earning bank charges to the tune of crores of rupees on the Buyers Credit Facility extended by PNB to the three partnership firms. (b) The banks that have extended the money to the firm’s buyers have been receiving payment in full, with interest, in time all these year. 5. Yesterday, FIPL and FDIPL’s inventory has been seized by the authorities. As per press reports the valuation of the is Rs. 5,649 crores. These, and other assets of FIPL/FDIPL and the three firms (including receivables and assets seized) could have settled all the amounts due to banks. However, now that stage appears to have passed, and there is generally panic. 6. I urge you once again to be fair, and in the interests of transparency, justice, the banking system and India as a whole, support my efforts to make good all the amounts that are found due by my group to all banks. 7. In your complaint you have wrongly named my brother, who was not at all concerned with the operations of the three firms or FIPL (India) and FDIPL (India). My wife was not connected with any business operations at all and she has been wrongly named. My uncle is also wrongly named in this complaint since he has an independent and unconnected business from mine and none of us are aware or concerned with his dealings with your bank. 8. The matter is being described as India’s largest banking fraud. This is far from the truth. Nirav Modi Group ran a legitimate luxury brand business and the brand had become India’s foremost global luxury brand, standing side by side with some of the biggest jewellery brands in the world. In the anxiety to recover your dues immediately, despite my offer, your actions have destroyed my brand and the business and have now restricted your ability to recover all the dues leaving a trail of unpaid debts. Whatever may be the consequences I may face for my actions, the haste was, in my humble submission, unwarranted. 9. I would request you to permit salaries for FIPL and FDIPL to be paid for the 2200 employees from the balance lying in the current accounts. Our HR head will send you a breakup of the monthly salary. Yours Sincerely, Nirav Modi

'You destroyed my brand': Read full text of Nirav Modi's letter to PNB

The Central Bureau of Investigation (CBI) sealed Punjab National Bank&#39;s MCB Brady House branch in Mumbai on Monday.

The official notice of the CBI read, &#39;Tthe branch cannot be opened and entered into without permission/order of the court concerned or Competent Authority of the Central Bureau of Investigation Mumbai.&#39;&#39;

MCB Brady house is the same branch where transactions related to PNB scam were carried out.

Also read:&nbsp; <a href="http://www.wionews.com/india-news/pnb-scam-billion-dollar-diamond-fraud-case-puts-indias-state-banks-in-focus-33285">Billion dollar diamond fraud case puts India&#39;s state banks in focus</a>

Last week, Punjab National Bank announced that it had discovered fraudulent transactions worth Rs 11,400 crore at MCB Brady House branch in Mumbai.

&nbsp;Also read: <a href="http://www.wionews.com/india-news/pnb-fraud-200-shell-firms-benami-assets-under-ed-i-t-dept-scanner-33269">200 shell firms, </a><a href="http://www.wionews.com/india-news/pnb-fraud-200-shell-firms-benami-assets-under-ed-i-t-dept-scanner-33269">benami</a><a href="http://www.wionews.com/india-news/pnb-fraud-200-shell-firms-benami-assets-under-ed-i-t-dept-scanner-33269"> assets under ED, I-T dept scanner</a>

Nirav Modi who has now fled the country carried out these fraud transactions by using fake bank guarantees as a proof to other banks to extract money from them.

The Enforcement Directorate (ED) is conducting a search operation and raided many showrooms across the country. Diamonds, gold, gems, jewellery, metal worth of crores has also been seized.

CBI arrested three officials of the PNB bank in connection with the scam.

Former deputy manager of Punjab National Bank, Gokulnath Shetty and Manoj Kharat, single window operator at PNB and Hemant Bhat, Authorised Signatory of the Nirav Modi Group of Firms were arrested on Saturday. 
&nbsp;

The official notice of the CBI read, 'Tthe branch cannot be opened and entered into without permission/order of the court concerned or Competent Authority of the Central Bureau of Investigation Mumbai'

The Central Bureau of Investigation (CBI) sealed Punjab National Bank's MCB Brady House branch in Mumbai on Monday. The official notice of the CBI read, 'Tthe branch cannot be opened and entered into without permission/order of the court concerned or Competent Authority of the Central Bureau of Investigation Mumbai.'' MCB Brady house is the same branch where transactions related to PNB scam were carried out. Also read: Billion dollar diamond fraud case puts India's state banks in focus Last week, Punjab National Bank announced that it had discovered fraudulent transactions worth Rs 11,400 crore at MCB Brady House branch in Mumbai. Also read: 200 shell firms, benami assets under ED, I-T dept scanner Nirav Modi who has now fled the country carried out these fraud transactions by using fake bank guarantees as a proof to other banks to extract money from them. The Enforcement Directorate (ED) is conducting a search operation and raided many showrooms across the country. Diamonds, gold, gems, jewellery, metal worth of crores has also been seized. CBI arrested three officials of the PNB bank in connection with the scam. Former deputy manager of Punjab National Bank, Gokulnath Shetty and Manoj Kharat, single window operator at PNB and Hemant Bhat, Authorised Signatory of the Nirav Modi Group of Firms were arrested on Saturday.

PNB scam: CBI seals bank's Brady House branch in Mumbai

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.

<div class="ui-state-default" contenteditable="false">
<div class="twitter-block" draggable="false">
<blockquote class="twitter-tweet" data-lang="en">
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>
<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>

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.

<div class="ui-state-default" contenteditable="false">
<div class="twitter-block" draggable="false"><iframe allow="autoplay; encrypted-media" allowfullscreen="" frameborder="0" height="315" src="https://www.youtube.com/embed/9RohEx_2_Hc" width="560"></iframe></div>
<a class="close-mark close-div" href="#" id="jqclosemark">&times;</a></div>

&nbsp;

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

Earlier declared as fraud entity by Punjab National Bank,&nbsp;different showrooms of the Gitanjali group were raided by the Enforcement Directorate on late night on Friday.

Also read: <a href="http://www.wionews.com/india-news/pnb-scam-cbi-arrests-pnbs-ex-deputy-manager-gokulnath-shetty-33158">CBI arrests PNB&#39;s ex-deputy manager Gokulnath Shetty in PNB scam</a>

The raids continued&nbsp;till Saturday morning and reports say that showrooms in about 11 states have been raided.

Stores in Dhanbad, Patna, Durgapur, and Jaipur&nbsp;have been raided.&nbsp;

<div class="ui-state-default" contenteditable="false">
<div class="twitter-block" draggable="false">
<blockquote class="twitter-tweet" data-lang="en">
<a href="https://twitter.com/hashtag/PNBFraudCase?src=hash&amp;ref_src=twsrc%5Etfw">#PNBFraudCase</a>: Visuals of Raid by ED officials at a <a href="https://twitter.com/hashtag/GitanjaliGems?src=hash&amp;ref_src=twsrc%5Etfw">#GitanjaliGems</a> store in Durgapur, <a href="https://twitter.com/hashtag/WestBengal?src=hash&amp;ref_src=twsrc%5Etfw">#WestBengal</a>. <a href="https://t.co/gYOKk7WGy4">pic.twitter.com/gYOKk7WGy4</a>
&mdash; ANI (@ANI) <a href="https://twitter.com/ANI/status/964760362338979841?ref_src=twsrc%5Etfw">February 17, 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>

During the raids, diamond jewellery worth of two crores was reportedly seized from Geetanjali gems&#39; Patna showroom.

Also read: <a href="http://www.wionews.com/india-news/pnb-fraud-ed-recovers-total-of-rs-5649-crore-raids-35-new-locations-33110">ED recovers total of Rs 5649 crore assets, raids 35 new locations</a>

From their Jaipur showroom, diamonds, gold, silver and gems stones worth of three crores was seized.

Also read: <a href="http://www.wionews.com/india-news/allahabad-bank-discloses-rs-2000-crore-exposure-in-pnb-fraud-33115">Allahabad Bank discloses Rs 2,000 crore exposure in PNB fraud</a>

Sources say that the&nbsp;Punjab National Bank officials were also present during the raid.

The Enforcement Directorate has reportedly seized 5100 crores worth of Nirav Modi&#39;s property across the country.

The Punjab National Bank 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.

Meanwhile, news agency ANI reported that Indian Banking Association will hold a meeting with Chiefs of all the Public Serice Undertaking banks through video conferencing from its headquarters in Mumbai on Saturday.

<div class="ui-state-default" contenteditable="false">
<div class="twitter-block" draggable="false">
<blockquote class="twitter-tweet" data-lang="en">
Indian Banking Association will hold meeting with Chiefs of all the PSU banks through video conferencing from its headquarters in Mumbai later today: Sources <a href="https://twitter.com/hashtag/PNBFraudCase?src=hash&amp;ref_src=twsrc%5Etfw">#PNBFraudCase</a>
&mdash; ANI (@ANI) <a href="https://twitter.com/ANI/status/964769694157852673?ref_src=twsrc%5Etfw">February 17, 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>

&nbsp;

The raids continued to till Saturday morning and reports say that showrooms in about 11 states have been raided

Earlier declared as fraud entity by Punjab National Bank, different showrooms of the Gitanjali group were raided by the Enforcement Directorate on late night on Friday. Also read: CBI arrests PNB's ex-deputy manager Gokulnath Shetty in PNB scam The raids continued till Saturday morning and reports say that showrooms in about 11 states have been raided. Stores in Dhanbad, Patna, Durgapur, and Jaipur have been raided. #PNBFraudCase: Visuals of Raid by ED officials at a #GitanjaliGems store in Durgapur, #WestBengal. pic.twitter.com/gYOKk7WGy4 — ANI (@ANI) February 17, 2018 × During the raids, diamond jewellery worth of two crores was reportedly seized from Geetanjali gems' Patna showroom. Also read: ED recovers total of Rs 5649 crore assets, raids 35 new locations From their Jaipur showroom, diamonds, gold, silver and gems stones worth of three crores was seized. Also read: Allahabad Bank discloses Rs 2,000 crore exposure in PNB fraud Sources say that the Punjab National Bank officials were also present during the raid. The Enforcement Directorate has reportedly seized 5100 crores worth of Nirav Modi's property across the country. 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. Meanwhile, news agency ANI reported that Indian Banking Association will hold a meeting with Chiefs of all the Public Serice Undertaking banks through video conferencing from its headquarters in Mumbai on Saturday. Indian Banking Association will hold meeting with Chiefs of all the PSU banks through video conferencing from its headquarters in Mumbai later today: Sources #PNBFraudCase — ANI (@ANI) February 17, 2018 ×

PNB scam: ED raids showrooms of Geetanjali gems

Indian banks could take a hit of at least $2.7 billion from loans and corporate guarantees provided to Punjab National Bank in a $1.77 billion fraud case, the tax department said on Saturday.

<div class="ui-state-default" contenteditable="false">
<div class="twitter-block" draggable="false"><iframe allow="autoplay; encrypted-media" allowfullscreen="" frameborder="0" height="315" src="https://www.youtube.com/embed/ntGeZfppQbc" width="560"></iframe></div>
<a class="close-mark close-div" href="#" id="jqclosemark">&times;</a></div>

&nbsp;

As of March 2017, banks had extended loans and guarantees worth 176.32 billion rupees ($2.74 billion) to companies tied to billionaire jeweller Nirav Modi and his uncle Mehul Choksi, the tax department said in a note. &nbsp;

But the total hit to Indian banks &quot;may well exceed&quot; that amount the department said in its note.

Meanwhile, a court on Saturday ordered three people arrested on suspicion of involvement in a $1.77 billion fraud at the Punjab National Bank to remain under police custody until March 3.

The three were arrested late on Friday, marking the first arrests in a fast-widening probe into the country&#39;s biggest bank scam.

The court in Mumbai ordered they remain under police custody and said the agency must get a fair chance to investigate the case, citing the potential consequences to the country&#39;s economy.

As of March 2017, banks had extended loans and guarantees worth 176.32 billion rupees ($2.74 billion) to companies tied to billionaire jeweller Nirav Modi and his uncle Mehul Choksi

Indian banks could take a hit of at least $2.7 billion from loans and corporate guarantees provided to Punjab National Bank in a $1.77 billion fraud case, the tax department said on Saturday. × As of March 2017, banks had extended loans and guarantees worth 176.32 billion rupees ($2.74 billion) to companies tied to billionaire jeweller Nirav Modi and his uncle Mehul Choksi, the tax department said in a note. But the total hit to Indian banks "may well exceed" that amount the department said in its note. Meanwhile, a court on Saturday ordered three people arrested on suspicion of involvement in a $1.77 billion fraud at the Punjab National Bank to remain under police custody until March 3. The three were arrested late on Friday, marking the first arrests in a fast-widening probe into the country's biggest bank scam. The court in Mumbai ordered they remain under police custody and said the agency must get a fair chance to investigate the case, citing the potential consequences to the country's economy.

Banks may take more than $3 billion hit from PNB fraud: IT Dept

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;

<div class="ui-state-default" contenteditable="false">
<div class="twitter-block" draggable="false">
<blockquote class="twitter-tweet" data-lang="en">
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>
&mdash; ANI (@ANI) <a href="https://twitter.com/ANI/status/964837482796810240?ref_src=twsrc%5Etfw">February 17, 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>

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

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.

<div class="ui-state-default" contenteditable="false">
<div class="videos-block">
<div class="embed-responsive embed-responsive-16by9"><iframe class="embed-responsive-item" src="https://www.youtube.com/embed/Hfx0QNLwHsQ"></iframe></div>
</div>

<div class="media-description">
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)
</div>
<a class="close-mark close-div" href="#" id="jqclosemark">&times;</a></div>

&nbsp;

&nbsp;

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

&nbsp;The Enforcement Directorate(ED) today issued <a href="http://www.wionews.com/india-news/pnb-scam-interpol-notice-against-nirav-modi-33049">summons</a><a href="http://www.wionews.com/india-news/pnb-scam-interpol-notice-against-nirav-modi-33049"> for appearance to billionaire diamond</a> merchant Nirav Modi and his business partner Mehul Choksi in connection with its money laundering probe in the Rs 11,400 crore alleged fraud in Punjab National Bank (PNB), officials said.

 
They said both Modi and Choksi were summoned under the Prevention of Money Laundering Act (PMLA) and asked to depose within a week&#39;s time.

 
The notices were handed over to the directors of the firms of the two businessmen as they were not in the country.

 
While Modi runs the jewellery brand chain under his name, Choksie is the promoter of Gitanjali Gems.

 
The ED had registered a PMLA case against them and others based on a CBI FIR which was the result of a PNB complaint.

 
The ED yesterday carried out multiple raids on showrooms, workshops, offices and residences of Modi and Choksi and seized diamonds, jewellery and gold worth Rs 5,100 crore.

 
The agency was probing if the allegedly defrauded bank funds were laundered and these proceeds of crime subsequently used by the accused to create illegal assets and black money.

 
Modi, 46, a regular feature on the lists of rich and famous Indians since 2013, 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 bank has sent two more complaints to the CBI on Tuesday, saying the scam was worth more than Rs 11,400 crore.

 
The CBI had earlier raided the residences of Modi, his brother, wife and Choksi, all partners of Diamond R US, Solar Exports and Stellar Diamonds and two bank officials -- Gokulnath Shetty (now retired) and Manoj Kharat, who were also named in the FIR as accused.

 
&quot;The public servants committed abuse of official position to cause pecuniary advantage to Diamond R US, Solar Exports, Stellar Diamonds and a wrongful loss of Rs 280.70 crore to Punjab National Bank during 2017,&quot; the CBI FIR has alleged.

 
The jewellery designer is a citizen of the country but his brother Nishal and wife Ami are not Indian nationals. They all left India between January 1 and 6, the CBI said.

The notices were handed over to the directors of the firms of the two businessmen as they were not in the country.

The Enforcement Directorate(ED) today issued summons for appearance to billionaire diamond merchant Nirav Modi and his business partner Mehul Choksi in connection with its money laundering probe in the Rs 11,400 crore alleged fraud in Punjab National Bank (PNB), officials said. They said both Modi and Choksi were summoned under the Prevention of Money Laundering Act (PMLA) and asked to depose within a week's time. The notices were handed over to the directors of the firms of the two businessmen as they were not in the country. While Modi runs the jewellery brand chain under his name, Choksie is the promoter of Gitanjali Gems. The ED had registered a PMLA case against them and others based on a CBI FIR which was the result of a PNB complaint. The ED yesterday carried out multiple raids on showrooms, workshops, offices and residences of Modi and Choksi and seized diamonds, jewellery and gold worth Rs 5,100 crore. The agency was probing if the allegedly defrauded bank funds were laundered and these proceeds of crime subsequently used by the accused to create illegal assets and black money. Modi, 46, a regular feature on the lists of rich and famous Indians since 2013, 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 bank has sent two more complaints to the CBI on Tuesday, saying the scam was worth more than Rs 11,400 crore. The CBI had earlier raided the residences of Modi, his brother, wife and Choksi, all partners of Diamond R US, Solar Exports and Stellar Diamonds and two bank officials -- Gokulnath Shetty (now retired) and Manoj Kharat, who were also named in the FIR as accused. "The public servants committed abuse of official position to cause pecuniary advantage to Diamond R US, Solar Exports, Stellar Diamonds and a wrongful loss of Rs 280.70 crore to Punjab National Bank during 2017," the CBI FIR has alleged. The jewellery designer is a citizen of the country but his brother Nishal and wife Ami are not Indian nationals. They all left India between January 1 and 6, the CBI said.

PNB scam: Enforcement Directorate issues summons to Nirav Modi

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.

<div class="ui-state-default" contenteditable="false"><img alt="" draggable="false" src="http://s.wionews.com/photos/n3main-20180216013415.jpg" />
<div class="media-description">
PNB said it has begun criminal action against two staff members and suspended some others. (WION)
</div>
<a class="close-mark close-div" href="javascript:void(0)" id="jqclosemark">&times;</a></div>

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.

<div class="ui-state-default" contenteditable="false"><img alt="" draggable="false" src="http://s.wionews.com/photos/n1main-20180216013047.jpg" />
<div class="media-description">
Nirav Modi had carried out &ldquo;fraudulent transactions&rdquo; worth over Rs 11,400 crore by acquiring fake bank guarantees (WION)
</div>
<a class="close-mark close-div" href="javascript:void(0)" id="jqclosemark">&times;</a></div>

&nbsp;

<div class="ui-state-default" contenteditable="false"><img alt="" draggable="false" src="http://s.wionews.com/photos/n4111-20180216013201.jpg" />
<div class="media-description">
PNB has accused three companies - Solar Exports, Stellar Diamonds and Diamond R US - it said belong to Nirav Modi. (WION)
</div>
<a class="close-mark close-div" href="javascript:void(0)" id="jqclosemark">&times;</a></div>

&nbsp;

&nbsp;

<div class="ui-state-default" contenteditable="false">
<div class="videos-block">
<div class="embed-responsive embed-responsive-16by9"><iframe class="embed-responsive-item" src="https://www.youtube.com/embed/Hfx0QNLwHsQ"></iframe></div>
</div>

<div class="media-description">
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)
</div>
<a class="close-mark close-div" href="#" id="jqclosemark">&times;</a></div>

&nbsp;

&nbsp;

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

Communist Party of India (Marxist) (CPI-M) leader Prakash Karat on Thursday hit out at the Prime Minister Narendra Modi government, saying that the <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">Punjab National Bank (PNB) fraud</a> is a type of &quot;crony capitalism&quot; flourishing under them.

Speaking to ANI, the CPI (M) leader demanded comprehensive inquiry in the matter, so that the culprits involved in the said scam, meet the justice.

&quot;It shows a type of crony capitalism flourishing in Prime Minister Narendra Modi Government,&quot; Karat said.

&quot;Recently, this gentleman was photographed with the Prime Minister at Davos. Like Vijay Mallya, will businessman Nirav Modi also be allowed to escape the law? Want comprehensive inquiry in the matter,&quot; he added.

Earlier on Thursday, the Enforcement Directorate (ED) wrote to the Ministry of External Affairs (MEA) seeking revocation of passports of Nirav Modi in connection with the PNB fraud case.

Besides Nirav Modi, the agency also asked to revoke the passport of his wife Ami Modi and his relative Mehul Choksi.

The agency also conducted searches at 17 premises of Nirav Modi and Geetanjali Gems across India in connection with the same case.

The probe agency also seized stocks of gold, diamond and other precious stones worth Rs 5100 crore.&nbsp;

Meanwhile, the Central Bureau of Investigation (CBI) has questioned the PNB bank officials but has not arrested any person as of now.

The PNB detected a 1.77 billion dollar scam in which jeweller 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.&nbsp;

Prakash Karat said the Punjab National Bank fraud was 'a type of crony capitalism flourishing in the Prime Minister Narendra Modi government'

Communist Party of India (Marxist) (CPI-M) leader Prakash Karat on Thursday hit out at the Prime Minister Narendra Modi government, saying that the Punjab National Bank (PNB) fraud is a type of "crony capitalism" flourishing under them. Speaking to ANI, the CPI (M) leader demanded comprehensive inquiry in the matter, so that the culprits involved in the said scam, meet the justice. "It shows a type of crony capitalism flourishing in Prime Minister Narendra Modi Government," Karat said. "Recently, this gentleman was photographed with the Prime Minister at Davos. Like Vijay Mallya, will businessman Nirav Modi also be allowed to escape the law? Want comprehensive inquiry in the matter," he added. Earlier on Thursday, the Enforcement Directorate (ED) wrote to the Ministry of External Affairs (MEA) seeking revocation of passports of Nirav Modi in connection with the PNB fraud case. Besides Nirav Modi, the agency also asked to revoke the passport of his wife Ami Modi and his relative Mehul Choksi. The agency also conducted searches at 17 premises of Nirav Modi and Geetanjali Gems across India in connection with the same case. The probe agency also seized stocks of gold, diamond and other precious stones worth Rs 5100 crore. Meanwhile, the Central Bureau of Investigation (CBI) has questioned the PNB bank officials but has not arrested any person as of now. The PNB detected a 1.77 billion dollar scam in which jeweller 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.

PNB scam a type of crony capitalism: CPI-M

The government Thursday promised &quot;swift action soon&quot; in the PNB scam.&nbsp;

Law Minister Ravi Shankar Prasad added that &quot;no one shall be spared&quot;.&nbsp;

Prasad was speaking to the media in New Delhi.&nbsp;

&quot;I wish to make it very clear and this I can also convey on the behalf of the govt that no shall be spared in the banking system who has sought to derail ordinary banking system to help NiravModi.&quot;&nbsp;

&quot;This is regardless of stature and status of concerned official,&quot; Prasad added.&nbsp;

<div class="ui-state-default" contenteditable="false">
<div class="twitter-block" draggable="false">
<blockquote class="twitter-tweet" data-lang="en">
I wish to make it very clear and this I can also convey on the behalf of the govt that no shall be spared in the banking system who has sought to derail ordinary banking system to help <a href="https://twitter.com/hashtag/NiravModi?src=hash&amp;ref_src=twsrc%5Etfw">#NiravModi</a>. This is regardless of stature and status of concerned official :Union Min RS Prasad <a href="https://t.co/vMr7oYOsXB">pic.twitter.com/vMr7oYOsXB</a>
&mdash; ANI (@ANI) <a href="https://twitter.com/ANI/status/964103780827623425?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>

Punjab National Bank MD Sunil Mehta said Thursday that the scam had begun in 2011 but that <a href="http://www.wionews.com/india-news/scam-began-in-2011-bank-discovered-it-in-january-2018-pnb-md-32969">his bank discovered it only in the third week of January</a>, 2018.&nbsp;

The PNB scam totals up to a massive 11,400 crore. At the centre of the scam is <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> &mdash;&nbsp;his designs have been worn by, amongs others, Kate Winslet and Priyanka Chopra.&nbsp;

Priyanka Chopra however, who is also Nirav Modi&#39;s brand ambassador, sued him on Thursday for non-payment of dues.&nbsp;

Nirav Modi had allegedly got junior PNB employees to sign bank guarantees on the basis of which he had got huge loans from foreign banks.&nbsp;

The scam was discovered this year when Modi tried to get new bank guarantees. The junior employees had left PNB by then, and the new people Modi was dealing with began to ask questions.&nbsp;

Modi is accused of defrauding PNB of Rs 280 crore.&nbsp;

A number of other large jewellers have also come under the scanner since the scam broke.&nbsp;&nbsp;

&nbsp;

&nbsp;

Law Minister Ravi Shankar Prasad promised 'swift action soon'

The government Thursday promised "swift action soon" in the PNB scam. Law Minister Ravi Shankar Prasad added that "no one shall be spared". Prasad was speaking to the media in New Delhi. "I wish to make it very clear and this I can also convey on the behalf of the govt that no shall be spared in the banking system who has sought to derail ordinary banking system to help NiravModi." "This is regardless of stature and status of concerned official," Prasad added. I wish to make it very clear and this I can also convey on the behalf of the govt that no shall be spared in the banking system who has sought to derail ordinary banking system to help #NiravModi. This is regardless of stature and status of concerned official :Union Min RS Prasad pic.twitter.com/vMr7oYOsXB — ANI (@ANI) February 15, 2018 × Punjab National Bank MD Sunil Mehta said Thursday that the scam had begun in 2011 but that his bank discovered it only in the third week of January, 2018. The PNB scam totals up to a massive 11,400 crore. At the centre of the scam is billionaire jeweller Nirav Modi — his designs have been worn by, amongs others, Kate Winslet and Priyanka Chopra. Priyanka Chopra however, who is also Nirav Modi's brand ambassador, sued him on Thursday for non-payment of dues. Nirav Modi had allegedly got junior PNB employees to sign bank guarantees on the basis of which he had got huge loans from foreign banks. The scam was discovered this year when Modi tried to get new bank guarantees. The junior employees had left PNB by then, and the new people Modi was dealing with began to ask questions. Modi is accused of defrauding PNB of Rs 280 crore. A number of other large jewellers have also come under the scanner since the scam broke.

PNB scam: 'No one shall be spared,' says govt

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

The Sensex and Nifty rose on Thursday tracking global markets, but Punjab National Bank fell for a second consecutive session after saying it unearthed $1.77 billion in fraudulent transactions, dragging down other state-run lenders.

The benchmark BSE Sensex closed up 0.41 percent at 34,297.47.&nbsp;

The broader NSE Nifty ended 0.42 percent higher at 10,545.50, its highest close in a week.

Punjab National Bank shares ended 12.9 percent lower, hitting their lowest close since Oct. 23, after falling as much as 14.2 percent on Wednesday.

The Nifty PSU bank index lost 1.1 percent.

Punjab National Bank shares ended 12.9 percent lower, hitting their lowest close since Oct. 23, after falling as much as 14.2 percent on Wednesday

The Sensex and Nifty rose on Thursday tracking global markets, but Punjab National Bank fell for a second consecutive session after saying it unearthed $1.77 billion in fraudulent transactions, dragging down other state-run lenders. The benchmark BSE Sensex closed up 0.41 percent at 34,297.47. The broader NSE Nifty ended 0.42 percent higher at 10,545.50, its highest close in a week. Punjab National Bank shares ended 12.9 percent lower, hitting their lowest close since Oct. 23, after falling as much as 14.2 percent on Wednesday. The Nifty PSU bank index lost 1.1 percent.

Sensex, Nifty end higher; PNB slumps for second day

Punjab National Bank MD Sunil Mehta said Thursday that the massive Rs 11,400 crore scam his bank finds itself in began in 2011 but that the bank &quot;detected it in the third week of January (2018).&quot;&nbsp;

Mehta added that &quot;we promptly investigated it for 3-4 days, we went to CBI on 29 Jan and FIR was booked on (Jan) 30.&quot;&nbsp;

&quot;We got to know that two of our employees did some un-authorised transactions. The bank intiated criminal action against our staff members,&quot; Mehta said.&nbsp;

&quot;This is a standalone incident. It has taken place only in one of our branches,&quot; Mehta added.&nbsp;

Also read:&nbsp;<a href="http://www.wionews.com/india-news/for-indias-banks-worst-of-their-bad-loan-woes-may-be-yet-to-come-32894" target="_blank">For India&#39;s banks, worst of their bad-loan troubles may be still to come</a>

PNB has the &quot;capability and the capacity to come out of this&quot;, Mehta said.&nbsp;&nbsp;

<div class="ui-state-default" contenteditable="false">
<div class="twitter-block" draggable="false">
<blockquote class="twitter-tweet" data-lang="en">
Hum kisi bhi galat kaam ko badhaava nahi denge. Hum log iss (<a href="https://twitter.com/hashtag/PNBScam?src=hash&amp;ref_src=twsrc%5Etfw">#PNBScam</a>) cheez ko surface pe lekar aaye: Sunil Mehta, MD PNB <a href="https://t.co/miWOwaWSO0">pic.twitter.com/miWOwaWSO0</a>
&mdash; ANI (@ANI) <a href="https://twitter.com/ANI/status/964058313582432257?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>

He added that &quot;In response to our registered FIR, raids are being conducted on involved groups establishments; documents and records are being seized. Steps are being taken to protect financial interest of banks.&quot;

'We promptly investigated it for 3-4 days, we went to CBI on 29 Jan and FIR was booked on (Jan) 30,' Sunil Mehta said

Punjab National Bank MD Sunil Mehta said Thursday that the massive Rs 11,400 crore scam his bank finds itself in began in 2011 but that the bank "detected it in the third week of January (2018)." Mehta added that "we promptly investigated it for 3-4 days, we went to CBI on 29 Jan and FIR was booked on (Jan) 30." "We got to know that two of our employees did some un-authorised transactions. The bank intiated criminal action against our staff members," Mehta said. "This is a standalone incident. It has taken place only in one of our branches," Mehta added. Also read: For India's banks, worst of their bad-loan troubles may be still to come PNB has the "capability and the capacity to come out of this", Mehta said. Hum kisi bhi galat kaam ko badhaava nahi denge. Hum log iss (#PNBScam) cheez ko surface pe lekar aaye: Sunil Mehta, MD PNB pic.twitter.com/miWOwaWSO0 — ANI (@ANI) February 15, 2018 × He added that "In response to our registered FIR, raids are being conducted on involved groups establishments; documents and records are being seized. Steps are being taken to protect financial interest of banks."

Scam began in 2011, bank discovered it in January 2018: PNB MD

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

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?

A day after the Punjab National Bank flagged off fraudulent transactions worth over Rs 11,000 crore in its Mumbai branch, Congress launched a scathing attack against Narendra Modi govt on Thursday.&nbsp;

Addressing a press conference, Congress spokesperson Randeep Surjewala said it had become a norm for the Narendra Modi government to let businessmen and corporates run away with public money.&nbsp;

Also read:&nbsp;<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>

Surjewala said whistleblower Hari Prasad had written to the Prime Minister&#39;s Office as early as July 2016, alerting the government about the &quot;biggest bank loot scam in 70 years&quot; in independent India.

He said the Nirav Modi was part of a delegation travelling with Prime Minister Modi to Davos despite &quot;the complaint against him&quot;.

Congress communications in-charge Randeep Surejewala raised questions on whether Nirav Modi had been tipped off following which he left the country.

&quot;Who is Nirav Modi? The new Modi Scam? Was he tipped off like Lalit Modi and Vijay Mallya to escape by someone within the government,&quot; he asked.

&quot;Has it become the norm for letting people run away with public money? Who is responsible,&quot; Surjewala tweeted.&nbsp;

Congress president Rahul Gandhi took a jab at PM Modi with a tweet titled &quot;Guide to Looting India&quot;, in which he alleged that Nirav Modi had wielded his influence with the PM to get away with the Rs 280 crore fraud.

<div class="ui-state-default" contenteditable="false">
<div class="twitter-block" draggable="false">
<blockquote class="twitter-tweet" data-lang="en">
Guide to Looting India 
by Nirav MODI 
 
1. Hug PM Modi 
2. Be seen with him in DAVOS 
 
Use that clout to: 
 
A. Steal 12,000Cr 
B. Slip out of the country like Mallya, while the Govt looks the other way. 
 
<a href="https://twitter.com/hashtag/From1MODI2another?src=hash&amp;ref_src=twsrc%5Etfw">#From1MODI2another</a>
&mdash; Office of RG (@OfficeOfRG) <a href="https://twitter.com/OfficeOfRG/status/964054481200656384?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>

Congress poses five major questions to Modi govt:&nbsp;

1: &quot;Who is responsible for the scam by Nirav Modi?

2: Were all the departments under the Modi government asleep, and why?

3: Punjab National Bank (PNB) chief had told the government that these men would escape. Despite this, how did these men escape?

4: How did the government not spot the biggest banking scam so far?

5: Who is the person who has given security to this scam? How did the risk management system of the banking sector not work?

&quot;These questions need to be answered by the prime minister,&quot; added Surjewala.

The shares of Punjab National Bank fell this morning by 9 per cent.&nbsp;The company suspended at least 10 employees in connection with the fraud.

Surjewala said whistleblower Hari Prasad had written to the Prime Minister's Office as early as July 2016

A day after the Punjab National Bank flagged off fraudulent transactions worth over Rs 11,000 crore in its Mumbai branch, Congress launched a scathing attack against Narendra Modi govt on Thursday. Addressing a press conference, Congress spokesperson Randeep Surjewala said it had become a norm for the Narendra Modi government to let businessmen and corporates run away with public money. 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 Surjewala said whistleblower Hari Prasad had written to the Prime Minister's Office as early as July 2016, alerting the government about the "biggest bank loot scam in 70 years" in independent India. He said the Nirav Modi was part of a delegation travelling with Prime Minister Modi to Davos despite "the complaint against him". Congress communications in-charge Randeep Surejewala raised questions on whether Nirav Modi had been tipped off following which he left the country. "Who is Nirav Modi? The new Modi Scam? Was he tipped off like Lalit Modi and Vijay Mallya to escape by someone within the government," he asked. "Has it become the norm for letting people run away with public money? Who is responsible," Surjewala tweeted. Congress president Rahul Gandhi took a jab at PM Modi with a tweet titled "Guide to Looting India", in which he alleged that Nirav Modi had wielded his influence with the PM to get away with the Rs 280 crore fraud. Guide to Looting India by Nirav MODI 1. Hug PM Modi 2. Be seen with him in DAVOS Use that clout to: A. Steal 12,000Cr B. Slip out of the country like Mallya, while the Govt looks the other way. #From1MODI2another — Office of RG (@OfficeOfRG) February 15, 2018 × Congress poses five major questions to Modi govt: 1: "Who is responsible for the scam by Nirav Modi? 2: Were all the departments under the Modi government asleep, and why? 3: Punjab National Bank (PNB) chief had told the government that these men would escape. Despite this, how did these men escape? 4: How did the government not spot the biggest banking scam so far? 5: Who is the person who has given security to this scam? How did the risk management system of the banking sector not work? "These questions need to be answered by the prime minister," added Surjewala. The shares of Punjab National Bank fell this morning by 9 per cent. The company suspended at least 10 employees in connection with the fraud.

PNB scam: Congress poses five questions to Prime Minister Narendra Modi

Priyanka Chopra&#39;s spokesperson said Thursday that the actress is &quot;seeking legal opinion with respect&nbsp;to terminating her contract&quot; with the Nirav Modi brand in light of the allegations against Modi.&nbsp;

Chopra is the Nirav Modi brand ambassador.&nbsp;

&quot;There are speculative reports that Priyanka Chopra has sued Nirav Modi. This is not true,&quot; the spokesperson said.&nbsp;

There had been reports earlier in the day that Chopra had sued Modi for the non-payment of dues.

<div class="ui-state-default" contenteditable="false">
<div class="twitter-block" draggable="false">
<blockquote class="twitter-tweet" data-lang="en">
There are speculative reports that Priyanka Chopra has sued <a href="https://twitter.com/hashtag/NiravModi?src=hash&amp;ref_src=twsrc%5Etfw">#NiravModi</a>. This is not true. She is seeking legal opinion with respect to terminating her contract with the brand in light of allegations of financial fraud against <a href="https://twitter.com/hashtag/NiravModi?src=hash&amp;ref_src=twsrc%5Etfw">#NiravModi</a>: Priyanka Chopra&#39;s Spokesperson (File Pic) <a href="https://t.co/NgDVxJGESR">pic.twitter.com/NgDVxJGESR</a>
&mdash; ANI (@ANI) <a href="https://twitter.com/ANI/status/964133056654307334?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>

Also read:&nbsp;<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>

Nirav Modi, who ventured late into the business, gained a reputation as India&rsquo;s top jeweller to the Bollywood A-listers and even to Hollywood biggies including Kate Winslet and Dakota Johnson who walked the red carpet in diamonds from his eponymous brand.&nbsp;

Nirav Modi has been named in Punjab National Bank&#39;s Rs 11,400 crore fraud.

'There are speculative reports that Priyanka Chopra has sued Nirav Modi. This is not true,' the spokesperson said

Priyanka Chopra's spokesperson said Thursday that the actress is "seeking legal opinion with respect to terminating her contract" with the Nirav Modi brand in light of the allegations against Modi. Chopra is the Nirav Modi brand ambassador. "There are speculative reports that Priyanka Chopra has sued Nirav Modi. This is not true," the spokesperson said. There had been reports earlier in the day that Chopra had sued Modi for the non-payment of dues. There are speculative reports that Priyanka Chopra has sued #NiravModi. This is not true. She is seeking legal opinion with respect to terminating her contract with the brand in light of allegations of financial fraud against #NiravModi: Priyanka Chopra's Spokesperson (File Pic) pic.twitter.com/NgDVxJGESR — ANI (@ANI) February 15, 2018 × 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 Nirav Modi, who ventured late into the business, gained a reputation as India’s top jeweller to the Bollywood A-listers and even to Hollywood biggies including Kate Winslet and Dakota Johnson who walked the red carpet in diamonds from his eponymous brand. Nirav Modi has been named in Punjab National Bank's Rs 11,400 crore fraud.

Brand ambassador Priyanka Chopra seeking to terminate contract with Nirav Modi: Spokesperson

Stung by a massive Rs 11,400 crore fraud, state-run Punjab National Bank (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.

PNB today extended its fall for the second straight session and ended the day 12 per cent lower at Rs 128.35 on BSE. The stock had fallen 10 per cent yesterday, after the lender said it had detected a Rs 11,400 crore (USD 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. This is more than 6-times of the company&#39;s full-year net profit of Rs 1,324 crore recorded in FY 2016-17.

The quantum of fraud itself is more than 8-times the bank&#39;s annual profit.

Also read: <a href="http://www.wionews.com/india-news/scam-began-in-2011-bank-discovered-it-in-january-2018-pnb-md-32969" target="_blank">Scam began in 2011, bank discovered it in January 2018, says&nbsp;PNB MD</a>

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, the billionaire jeweller at centre of Rs 11,400 crore PNB scam</a>

The state-owned bank said it had detected a USD 1.77 billion fraud in which billionaire jeweller Nirav Modi allegedly acquired fraudulent letters of undertaking (LoUs) from one of its branches for overseas credit from other Indian lenders.

PNB has suspended 10 officers over the scam and referred the matter to CBI for investigation.

Meanwhile, shares of PNB Housing Finance settled for the day at Rs 1199.00, down 4.30 per cent on the BSE.

While PNB did not name other lenders, Union Bank of India, Allahabad Bank and Axis Bank are said to have offered credit based on LoUs issued by PNB.

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.

Consequently, shares of Union Bank of India settled down 0.95 per cent, Allahabad Bank ended the day down 2.31 per cent and Axis Bank was quoted down 0.17 per cent.

This could be the biggest banking fraud in India as its quantum was bigger than an estimated Rs 9,000 crore scam at erstwhile Satyam Computers.&nbsp;

PNB stock fell 12% today, ending at Rs 128.35 on the Bombay Stock Exchange. The stock had fallen 10% yesterday

Stung by a massive Rs 11,400 crore fraud, state-run Punjab National Bank (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. PNB today extended its fall for the second straight session and ended the day 12 per cent lower at Rs 128.35 on BSE. The stock had fallen 10 per cent yesterday, after the lender said it had detected a Rs 11,400 crore (USD 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. This is more than 6-times of the company's full-year net profit of Rs 1,324 crore recorded in FY 2016-17. The quantum of fraud itself is more than 8-times the bank's annual profit. Also read: Scam began in 2011, bank discovered it in January 2018, says PNB MD Also read: Who is Nirav Modi, the billionaire jeweller at centre of Rs 11,400 crore PNB scam The state-owned bank said it had detected a USD 1.77 billion fraud in which billionaire jeweller Nirav Modi allegedly acquired fraudulent letters of undertaking (LoUs) from one of its branches for overseas credit from other Indian lenders. PNB has suspended 10 officers over the scam and referred the matter to CBI for investigation. Meanwhile, shares of PNB Housing Finance settled for the day at Rs 1199.00, down 4.30 per cent on the BSE. While PNB did not name other lenders, Union Bank of India, Allahabad Bank and Axis Bank are said to have offered credit based on LoUs issued by PNB. 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. Consequently, shares of Union Bank of India settled down 0.95 per cent, Allahabad Bank ended the day down 2.31 per cent and Axis Bank was quoted down 0.17 per cent. This could be the biggest banking fraud in India as its quantum was bigger than an estimated Rs 9,000 crore scam at erstwhile Satyam Computers.

PNB loses Rs 8,000 crore market cap in 2 days, six times its annual profit

Benchmark Sensex succumbed to fag-end profit-booking to end 144 points lower at 34,156 on Wednesday after banking stocks tumbled on RBI&#39;s new norms for recognising stressed assets.

In addition, state-owned Punjab National Bank (PNB) today said it has detected some fraudulent transactions worth USD 1.171 billion (about Rs 11,334.4 crore) and the matter has been referred to law enforcement agencies for recovery.

The benchmark BSE index opened higher at 34,436.98 on positive domestic and global cues and advanced to hit a high of 34,473.43.

 
However, it slipped on profit-booking to touch a low of 34,028.68. It finally ended 144.52 points or 0.42 per cent down at 34,155.95.

The NSE Nifty settled the day 38.85 points or 0.37 per cent lower at 10,500.90 after shuttling between 10,590.55 and 10,456.65, intra-day.

Foreign portfolio investors (FPIs) sold shares worth Rs 814.11 crore on net basis on Monday, while domestic institutional investors bought shares worth Rs 1,342.70 crore, provisional data showed.

The NSE Nifty settled the day 38.85 points or 0.37 per cent lower at 10,500.90 after shuttling between 10,590.55 and 10,456.65, intra-day.

Benchmark Sensex succumbed to fag-end profit-booking to end 144 points lower at 34,156 on Wednesday after banking stocks tumbled on RBI's new norms for recognising stressed assets. In addition, state-owned Punjab National Bank (PNB) today said it has detected some fraudulent transactions worth USD 1.171 billion (about Rs 11,334.4 crore) and the matter has been referred to law enforcement agencies for recovery. The benchmark BSE index opened higher at 34,436.98 on positive domestic and global cues and advanced to hit a high of 34,473.43. However, it slipped on profit-booking to touch a low of 34,028.68. It finally ended 144.52 points or 0.42 per cent down at 34,155.95. The NSE Nifty settled the day 38.85 points or 0.37 per cent lower at 10,500.90 after shuttling between 10,590.55 and 10,456.65, intra-day. Foreign portfolio investors (FPIs) sold shares worth Rs 814.11 crore on net basis on Monday, while domestic institutional investors bought shares worth Rs 1,342.70 crore, provisional data showed.

Sensex sheds 144 points as banking stocks tumble

State-run Punjab National Bank (PNB) said on Wednesday it had detected some &quot;fraudulent and unauthorised&quot; transactions worth about $1.77 billion at one of its branches in Mumbai.

The bank said in a regulatory filing the transactions were &quot;for the benefit of a few select account holders with their apparent connivance&quot; and that &quot;based on these transactions other banks appear to have advanced money to these customers abroad.&quot;

PNB, the country`s second-biggest state-run lender and fourth-biggest overall by assets, did not name the people involved but said it had reported the deals to law enforcement agencies and would evaluate later whether it faces any liability arising out of the transactions.

&quot;In the bank these transactions are contingent in nature and liability arising out of these on the bank shall be decided based on the law and genuineness of underlying transactions,&quot; PNB said, without giving further details.

PNB shares were trading 4.1 per cent lower having fallen as much as 5.7 per cent in early trading. The main Mumbai market index was little changed.

PNB is already dealing with other allegations of fraudulent transactions. Last week, officials&nbsp;had said they had launched an investigation into billionaire jeweller Nirav Modi, one of the country`s richest men, over accusations that he and others defrauded PNB of $44 million.

It was not immediately known if the latest disclosure on fraudulent transactions was related to or separate from the previous incident.

State-run Punjab National Bank (PNB) said on Wednesday it had detected some 'fraudulent and unauthorised' transactions worth about $1.77 billion at one of its branches in Mumbai

State-run Punjab National Bank (PNB) said on Wednesday it had detected some "fraudulent and unauthorised" transactions worth about $1.77 billion at one of its branches in Mumbai. The bank said in a regulatory filing the transactions were "for the benefit of a few select account holders with their apparent connivance" and that "based on these transactions other banks appear to have advanced money to these customers abroad." PNB, the country`s second-biggest state-run lender and fourth-biggest overall by assets, did not name the people involved but said it had reported the deals to law enforcement agencies and would evaluate later whether it faces any liability arising out of the transactions. "In the bank these transactions are contingent in nature and liability arising out of these on the bank shall be decided based on the law and genuineness of underlying transactions," PNB said, without giving further details. PNB shares were trading 4.1 per cent lower having fallen as much as 5.7 per cent in early trading. The main Mumbai market index was little changed. PNB is already dealing with other allegations of fraudulent transactions. Last week, officials had said they had launched an investigation into billionaire jeweller Nirav Modi, one of the country`s richest men, over accusations that he and others defrauded PNB of $44 million. It was not immediately known if the latest disclosure on fraudulent transactions was related to or separate from the previous incident.

Detected $1.77 billion worth of fraudulent transactions: Punjab National Bank

The Bombay Stock Exchange (BSE) Sensex climbed as much as 1.6 per cent to a record high of 33,117.33, buoyed by a surge in prices of banking shares after the Cabinet nod to a $32.43 billion plan to recapitalise state banks over the next two years.

State Bank of India, the biggest lender, rose more than 20 per cent. Punjab National Bank, the second biggest public sector lender, surged more than 33 per cent.

Bonds, however, fell, given the injection will be funded with debt, Reuters reported.

The benchmark NSE Nifty rose as much as 1.3 per cent to a record high of 10,340.55.

Bonds fell, with the benchmark 10-year bond yield up 3 basis points to 6.81 percent from its previous close. 
&nbsp;

The BSE Sensex climbed as much as 1.6% to a record high of 33,117.33

The Bombay Stock Exchange (BSE) Sensex climbed as much as 1.6 per cent to a record high of 33,117.33, buoyed by a surge in prices of banking shares after the Cabinet nod to a $32.43 billion plan to recapitalise state banks over the next two years. State Bank of India, the biggest lender, rose more than 20 per cent. Punjab National Bank, the second biggest public sector lender, surged more than 33 per cent. Bonds, however, fell, given the injection will be funded with debt, Reuters reported. The benchmark NSE Nifty rose as much as 1.3 per cent to a record high of 10,340.55. Bonds fell, with the benchmark 10-year bond yield up 3 basis points to 6.81 percent from its previous close.

Sensex at record high, bank shares soar on recapitalisation plan

Indian shares inched up in thin trade on Thursday with gains in IT stocks such as Infosys offsetting losses in banking shares.

IT stocks were among the top gainers with Infosys rising as much as 2.4 per cent after a group of institutional investors asked the company to bring former CEO Nandan Nilekani back on to its board to settle the feud with the founders.

Gains were however muted as investors booked profit in banking shares after a rally in the previous session following federal cabinet&#39;s approval of a mechanism to oversee consolidation in public sector banks.

Shares of state-run lenders Punjab National Bank and Allahabad Bank fell 1.5 per cent and 1.8 per cent, after gaining 3.4 per cent and 4.7 per cent in the previous session.

A stronger bank will not readily absorb a weaker one because it wouldn&#39;t want its balance sheet to weaken, said Saurabh Jain, assistant vice-president of research at SMC Global Securities.

&quot;It is a difficult and a challenging process.&quot;

The broader NSE Nifty was up 0.08 per cent at 9,860.6 as of 0546 GMT, while the benchmark BSE Sensex was 0.08 per cent higher at 31,591.98.

Pharma stocks such as Sun Pharmaceuticals and Lupin gained over 2.5 per cent each.

Shares of brewers surged after the Supreme Court clarified that the liquor ban on highways did not apply to licensed establishments falling within municipal areas. United Spirits and Globus Spirits rose between 5 per cent and 13 per cent.

IT stocks were among the top gainers with Infosys rising as much as 2.4 per cent after a group of institutional investors asked the company to bring former CEO Nandan Nilekani back on to its board to settle the feud with the founders

Indian shares inched up in thin trade on Thursday with gains in IT stocks such as Infosys offsetting losses in banking shares. IT stocks were among the top gainers with Infosys rising as much as 2.4 per cent after a group of institutional investors asked the company to bring former CEO Nandan Nilekani back on to its board to settle the feud with the founders. Gains were however muted as investors booked profit in banking shares after a rally in the previous session following federal cabinet's approval of a mechanism to oversee consolidation in public sector banks. Shares of state-run lenders Punjab National Bank and Allahabad Bank fell 1.5 per cent and 1.8 per cent, after gaining 3.4 per cent and 4.7 per cent in the previous session. A stronger bank will not readily absorb a weaker one because it wouldn't want its balance sheet to weaken, said Saurabh Jain, assistant vice-president of research at SMC Global Securities. "It is a difficult and a challenging process." The broader NSE Nifty was up 0.08 per cent at 9,860.6 as of 0546 GMT, while the benchmark BSE Sensex was 0.08 per cent higher at 31,591.98. Pharma stocks such as Sun Pharmaceuticals and Lupin gained over 2.5 per cent each. Shares of brewers surged after the Supreme Court clarified that the liquor ban on highways did not apply to licensed establishments falling within municipal areas. United Spirits and Globus Spirits rose between 5 per cent and 13 per cent.

Infosys shares up after Nandan Nilekani's comeback rumours