According to the CBI, top PNB officials were called at the agency's Mumbai branch and were questioned for over 7 hours.
Reacting to the development, Nirav Modi's lawyer Vijay Agarwal said that government agencies are acting contrary to each other.
The bank also said that media reports saying Reserve Bank of India and government asking PNB to make payment of the fraudulent amount to other banks is also incorrect.
Referring to the banking frauds by diamond jeweller Nirav Modi (worth Rs 11,300 crore) and others (Rotomac loan default worth over Rs 3,000 crore) as "actual" losses, Sibal said: "Why is he (Prime Minister) silent now?"
Speaking on the scam for the second time this week, he said employees conniving with fraudsters is worrisome. Also worrisome is that no red flag was raised. Regulators should have a "third eye" open to detect and check such frauds.
"I will face my destiny and I know I have done nothing wrong and ultimately the truth shall prevail," Choksi said in a letter to his employees, released by his lawyer Sanjay Abbot.
Without naming either the alleged kingpin of the fraud, Nirav Modi, or PNB, PM said the management of financial institutions, auditors and regulators should perform their duty with full dedication.
Finding Price Waterhouse guilty in the multi-crore Satyam scam, Securities and Exchange Board of India (Sebi) in January had barred its network entities from issuing audit certificates to any listed company in India for two years.
It further added that the working of the branches is "going on smoothly" and the transfers are in no way affecting the customer service of the bank.
According to AIBEA General secretary, the fraud-hit Brady branch of PNB is a Category A foreign exchange bank branch and the RBI failed to monitor it resulting in the massive scam/fraud.
Nitin Gadkari's assertion comes in the backdrop of speculation that he may be sent back to Maharashtra as Chief Minister, replacing incumbent Devendra Fadnavis.
The central probe agency today also froze shares of Rs 13.86 crore value from a company belonging to Nirav Modi, alongwith 176 steel almirahs and 60 plastic containers containing imported watches.
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 J&K Bank had in third quarter ending December 31, 2017 reported a net profit of Rs 72.47 crore. However, the Srinagar-based bank’s net NPAs narrowed to Rs 2,487.6 crore in the quarter as against Rs 2,699.14 crore a year earlier.
Sources also told India TV that Nirav’s maternal uncle and his business partner Mehul Choksi is in Dubai. He is staying in Emirates Hills -- a gated community located in Dubai.
With today's seizure, the total value of gems and gold jewellery seized by the ED stands at Rs 5,736 crore.
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