The BJP fielded Defence Minister Nirmala Sitharaman to counter the Congress charge that the scam took place in 2017 under the Modi government when the letters of understanding were signed by the Punjab National Bank in favour of Nirav Modi.
As per the Central Bureau of Investigation, 143 LoUs were fraudulently issued to three Mumbai-based private companies of Nirav Modi's associate Choksi -- Gitanjali Gems, Nakshatra and Gili -- during the period 2017-18.
In further trouble for beleaguered jewellery designer Nirav Modi, the Income Tax Department today provisionally attached 29 properties and 105 bank accounts of the diamond merchant, his family and firms as part of its tax evasion probe.
The CBI has alleged in the FIR that accused bank officials Shetty and Kharat in connivance with accused companies and others defrauded PNB to the tune of Rs 4,886.70 crore, the CBI spokesperson said.
The Reserve Bank warned of "appropriate supervisory action", saying it is assessing the control systems at Punjab National Bank (PNB).
The official, identified as Dinesh Dubey – former Allahabad bank director, claimed that he was forced to resign from post due to pressure from the then Finance Secretary for trying to expose the scam.
ED expanded its probe from 17 to 35 locations across various cities, as it asked Modi's designer jewellery chain headquarters in Mumbai to issue a sales embargo for its overseas stores.
The development comes as raids are being conducted in at least 20 locations related to the Gitanjali group of companies, promoted by Nirav Modi's maternal uncle and business partner Mehul Choksi, in six cities and five states.
Rajnish Kumar also pointed out that the SBI has "a small exposure to Gitanjali Gems", owned by the uncle of Nirav Modi, Mehul Choksi, "but it is not a point of worry".
Banerjee, who was interacting with officials in Jhargram district, said banks should extend cooperation to poor farmers, SHG members and small entrepreneurs to make them self-reliant and boost development.
Bollywood actor Sidharth Malhotra was also associated with the brand.
Earlier today, the MEA had suspended with immediate effect the passports of Nirav Modi and his business partner Mehul Choksi for four weeks.
Nirav, who was alleged to have carried out fraudulent transactions worth over Rs 14,400 crore in Punjab National Bank, had left the country on January 1, while his uncle and business partner Mehul Choksi, left on January 4.
Sunil Mehta, Managing Director and Chief Executive Officer of Punjab National Bank said the bank "will not spare anyone" involved in the crime.
Besides Allahabad Bank, names of 16 banks including SBI, Union Bank of India and Axis Bank have also featured in the list banks that offered credit on PNB's LoUs. Among them, the Allahabad Bank has the largest exposure.
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