Attorney General K K Venugopal, appearing for the Centre, said he was opposing the PIL on various grounds, including that an inquiry has started after the FIR was registered.
The CBI has registered two cases involving Modi and Choksi. These relate to fraudulent issuance of 150 Letters of Undertaking (LoU) (a kind of bank guarantee) worth Rs 6,498 crore and 143 LoUs worth Rs 4,886 crore.
He further alleged that the PNB has termed commercial transactions as a fraud.
News agency ANI reported that the official, who has been identified as Rajesh Jindal, was taken into custody by the country’s premier investigating agency last night.
The plea filed in SC has asked for a special investigation team (SIT) to probe PNB fraud involving billionaire jewellers Nirav Modi and Mehul Choksi.
The panel will be headed by former RBI board member YH Malegam. Malegam, considered country’s most respected auditor, had earlier led several RBI committees on important reform measures.
Breaking his silence over the fraud at country’s second-biggest bank, Jaitley on Tuesday said that the state was duty-bound to ensure those cheating the system are brought to justice.
Vipul Ambani is the top executive handling the finances of the firm of billionaire jeweller Nirav Modi, who is the kingpin of the country’s biggest ever bank fraud.
The ED claimed that out of these 120 shell companies, 80 firms were being used by billionaire jeweler Nirav Modi and his uncle Mehul Choksi to route funds.
Following the biggest scam in the country's banking sector to the tune of Rs 11,340 crore at state-run Punjab National Bank (PNB), Moody's today placed the lender under review for downgrade.
According to sources, the I-T has written letters to its counterpart agencies of these countries. The tax department said that Modi may have parked money in tax havens.
In its letter, the Department of Financial Services sought the Central bank’s view on the lapses in the banking system and steps required to check recurrence of such incidents, news agency PTI reported quoting sources.
The CBI has already registered two FIRs -- one on January 31 and another a few days ago -- against billionaire diamond merchant Nirav Modi, his relative Mehul Choksi of Gitanjali Gems and others for allegedly defrauding the PNB of about Rs 11,400 cr.
The bank, one of the most active lenders in the gems and jewellery sector, however has a "small" exposure to Gitanjali Gems, promoted by Modi's uncle Mehul Choksi which is also an accused in the Rs 11,400-crore fraud.
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