The CII President said such instances of collusion between corrupt bank officials and scamsters should not lead to a situation of choking of credit to industry.
Some 10,000 credit or debit card holders have been affected by a data breach reported by PNB, which is already reeling under a multi-crore rupee financial fraud by two fugitive luxury jewellers.
The department, in the last few days, has similarly attached nine bank accounts and seven properties of the group and Choksi.
Nirav Modi, the billionaire diamond king under the scanner of various investigating agencies, failed to depose before the ED after summons were issued to him.
Earlier on Thursday, the ED said it has frozen shares, deposits and luxury cars worth over Rs 100 crore of the Nirav Modi and Mehul Choksi.
Nirav Modi in his letter to the bank had said that the over-zealousness on the part of the bank to deal with the issue destroyed his jewellery brand and also jeopardised his ability to clear the dues.
Rajesh Jindal, who was holding the charge of Mumbai-based PNB's Brady House branch between August 2009 and May 2011, was arrested on Tuesday night after daylong questioning in Mumbai.
Jolted by the Rs 11,400-crore fraud case, the Punjab National Bank (PNB) went into damage control today, transferring 18,000 of its employees.
The government must get a free hand to probe the over Rs 11,000 crore PNB fraud case, allegedly involving billionaire jeweller Nirav Modi, the Supreme Court said today.
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.
Congress spokesperson Manish Tewari said his party would not let go of the issues till the government gives a satisfactory response.
Punjab National Bank (PNB) was last year given the award for timely completion of disciplinary proceedings.
Expressing his anger at the functioning of the banks, the finance minister said that the functioning of banks depends on trust, the relationship of borrower and the lender.
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.
The letter also refers to the extended discussions between him, and between his representatives and the bank officers and also his emails on February 13 and 15, 2018.
The Income Tax department has found that in the last financial year the Nirav Modi group had illegally diverted Rs 1,216 crore of diamonds meant for export from its special economic zone to the domestic market, selling them in cash.
The fake LoUs, issued between February 9 to 14 last year, were used by Nirav Modi group's employees to borrow Rs 280 crores from Allahabad Bank and Axis Bank in Hong Kong.
Shetty also informed the investigators that he shared the password with other individuals, essentially employees, as well as directors of Nirav Modi’s company.
ED raided 10 places in Mumbai, six each in Ahmedabad and Bengaluru, four in Chennai, three in Surat, two each in Bihar, Lucknow, Jalandhar and Hyderabad and one in Delhi.
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