PNB fraud: Supreme Court to hear PIL seeking SIT probe today
India | February 21, 2018 8:35 ISTThe 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 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.
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.
The Congress also questioned PM Modi's silence on Amit Shah's son's company allegedly registering a profit 16,000 times the investment, Rafael fighter jets deal, death of Judge BH Loya, and ONGC stake in West Block of KG Basin.
In a chat with India TV, Vijay Aggarwal said that Nirav Modi had gone abroad for his business dealings when the entire PNB mess cropped out. He said that Modi is not evading the laws and that he doesn't want to become an offender.
The PNB’s notice assumes significance as it comes in the backdrop of the RBI’s clarification that it has not directed the bank to meet its commitments under the LoUs to other banks.
The clarification comes amid reports that banks could take a hit of more than $3 billion from loans and corporate guarantees provided to jewellery designer Nirav Modi and Gitanjali Group of Companies.
After a major crackdown by Enforcement Directorate (ED), CBI and I-T Department, the CVC had last week summoned the PNB management and Finance Ministry officials to appear before it on Monday.
The Congress party has been targeting the BJP-led Centre ever since the PNB fraud was unearthed. The party has accused the government of favouring businessmen fleeing the country after looting public money.
The development is important because last week Minister of State for Finance Shiv Pratap Shukla had told reporters that the Ministry of Finance was working with the Prime Minister's Office (PMO) to resolve the case.
The CBI yesterday started an intensive search operation at the Brady road branch of PNB in Mumbai, which is at the centre of a colossal banking fraud involving billionaire jewellers Nirav Modi and Mehul Choksi.
On Sunday, the CBI had questioned 11 PNB bank officials as well as Vipul Ambani, the Chief Financing Officer of diamond merchant Nirav Modi's Firestar International company.
On Sunday, the CBI also conducted searches at PNB's Brady House branch in Mumbai, which will continue today.
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