Urjit Patel said that banking frauds amount to looting of our country's future by some in the business community in cahoots with some lenders.
The PNB, the country's second-biggest state-run lender, filed a supplementary complaint to the CBI on March 4 against Gitanjali Gems Ltd, Gill India Ltd, Nakshatra Brand Ltd and Asmi Jewellery India Ltd for the additional fraud amount.
In addition, the RBI has asked all banks for details of the LoUs they had written, including the amounts outstanding, and whether the banks had pre-approved credit limits or kept enough cash on margin before issuing the guarantees.
Sources said that PNB has written a letter to the banking sector regulator seeking its opinion on making provisions for the fraud.
Gitanjali Gems promoter Choksi, in his seven page letter which was released by his lawyer, has said it was impossible for him to return to India and join the investigation due to the suspension of his passport and ill-health.
While talking to reporters on the sidelines of an IVCA event here, Garg further said the Department of Financial Services in the finance ministry has asked banks to screen all NPA or bad loan accounts.
The bank has alleged in its complaint that its Brady Road branch in Mumbai had extended credit facilities to Firestar group between 2013 and 2017.
In its plea, the company sought quashing of seizing of movable properties of Nirav Modi and depositing them with the PNB.
The questioning came a day after the CBI arrested four people -- two employees and an auditor of Nirav Modi's group of companies, and a director of Gitanjali Group of Companies.
The ex-parte NCLT order was passed on a petition filed under various sections of the Companies Act 2013 by the Union Corporate Affairs Ministry last week before the Mumbai bench of the NCLT, the ministry said.
The agency has arrested two employees and an auditor of the Nirav Modi group of companies, while a director of the Gitanjali group of companies owned by Choksi has also been taken into custody, officials said.
The court, set up under the Prevention of Money Laundering Act (PMLA), issued the NBWs on applications filed by the Enforcement Directorate (ED), one of the agencies probing the bank fraud cases registered last month.
The premier investigative agency had arrested Mishra yesterday, who was responsible for concurrent audit for the period 2011-2015 at PNB Brady House branch.
The only banks mentioned as creditors are HSBC and Israel Discount Bank (IDB), which have outstanding loans totaling $20 million to two of the companies.
Nirav Modi has a majority stake in Firestar Diamond and its other sister companies through his other companies.
Modi, his uncle Mehul Choksi and others are being investigated by multiple probe agencies following a complaint by the Punjab National Bank (PNB) that they allegedly cheated the nationalised bank to the tune of over Rs 12,000 crore
According to sources, Bank of India, Andhra Bank, IDBI Bank and Indian Overseas Bank have closed down Dubai operations, while Punjab National Bank, Canara Bank and Union Bank of India have shut Shanghai offices.
Top News
Latest News
