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February 22, 2018 / 10:04 PM IST

PNB fraud: Mehul Choksi has not responded to summons issued by ED

This blog will give you the latest news and updates on the Rs 11,400-crore PNB fraud case.


21:02 Mehul Choksi did not respond of summon issued by the Enforcement Directorate on February 15, reports Moneycontrol’s Tarun Sharma.

20:11 Nirav Modi has refused to appear before the Enforcement Directorate after summons were issued to him on February 15, Moneycontrol's Tarun Sharma has reported.

CNBC TV18 has reported

that ED’s Mumbai Office has receives an email from Nirav Modi. Nirav Modi has told ED that he is occupied with business activities and so is unable to appear before it. ED is likely to serve fresh summons to Nirav Modi.

19:48 Income Tax Department has attached Gitanjali Group's SEZ property worth Rs 1,200 crore.

17:37 ED seizes Rs 100 crore deposits, luxury cars of Nirav ModiMehul Choksi

The Enforcement Directorate (ED) has said it has frozen shares, deposits and luxury cars worth over Rs 100 crore of the Nirav Modi and Mehul Choksi groups in connection with a money laundering probe against them in the Rs 11,400-crore alleged PNB fraud.

Enforcement Directorate officials said they have frozen mutual funds and shares worth Rs 86.72 crore belonging to Choksi and his group and Rs 7.80 crore owned by the Modi group.

While the total value of these shares and mutual funds is Rs 94.52 crore, the costly four-wheelers are worth a few crore and hence the total seizure value stands to be over Rs 100 crore, the officials said.

The total seizure in the case is now Rs. 5,826 crore, which the agency has said is being independently valued. (PTI)

17:22 The Ministry of External Affairs has said that it does not know the location of Nirav Modi and that ‘he can be anywhere’, according to news reports.

16:39 Enough assets to meet any liability, says scam-hit PNB

State-owned Punjab National Bank (PNB) has said that it has followed lawful avenues to recover its dues following Rs 11,400 crore swindling of funds allegedly by jewellery designer Nirav Modi and associates.

The country's second largest public sector lender also reaffirmed that it has enough assets to meet any liability. (PTI)

15:53 PNB asks Nirav Modi to come up with concrete and implementable plan to repay dues, reports CNN-News18. On the other hand, Nirav Modi has filed a plea in Mumbai's CBI court to free the company's server as the company is not able to work.

11:58 A Finance Ministry official told CNBC-TV18 that they are planning to seek Banks Board Bureau's (BBB) inputs soon on whether a PNB top management rejig is possible.

10:16 ED freezes Rs 94 cr worth MFs, shares of Nirav Modi, Mehul Choksi group

ED seized 9 cars of Nirav Modi and his companies. These cars include one Rolls Royce Ghost, two Mercedes Benz GL 350 CDIs, one Porsche Panamera, 3 Honda cars, one Toyota Fortuner and one Toyota Innova, reports ANI. The body froze Nirav Modi's mutual funds and shares worth Rs 7.80 Crore and Rs 86.72 crore of those belonging to Mehul Choksi Group.

08:26 PNB likely to get recapitalisation hike

The recapitalisation amount set for Punjab National Bank (PNB) is likely to increase as the Rs 11,400 crore fraud case unfolds, reports The Business Standard. The bank's performance metrics are being reviewed to see if it requires being put on the central bank's list for prompt corrective action (PCA), sources told the paper.

Apart from this, a number of reforms have been on the back burner for some time may be expedited. Out of these, privatisation of IDBI Bank, widespread board and management changes in state-owned banks, and tightening of rules governing the internal mechanism and appointment of auditors are the core plans.

“The Reserve Bank of India will have to examine how the fraud affects PNB’s parameters. Whether you like it or not, its recapitalisation will have to be increased,” a senior official told BS. “The central bank will also examine if the bank requires PCA after the latest hit,” the official added.

08:01 PNB adopts strict SWIFT controls after mega fraud

Punjab National Bank has stepped up its controls on the use of global payments network SWIFT following an alleged $1.77 billion fraud, according to memos issued this month and seen by Reuters. The new measures mean only PNB officers will be able to initiate messages on SWIFT, taking away the authority of clerks to do so. Several new limits have been placed on the amount that officers can generate depending on their seniority in the bank hierarchy.

The note sent by the bank’s head office in New Delhi to all regional offices on February 17 also stated any SWIFT message will have to be created, verified and authorised by three different officers, starting Thursday. Previously only two individuals were needed for the process. “In continuation of efforts to strengthen SWIFT operation and deploy additional measures to ensure more effective control, it has been decided to set up SWIFT user base limits,” the note went on to say.

07:58 Recap of the case

What happened?

Over Rs 11,400 crore was siphoned by Punjab National Bank (PNB) issuing LoUs to top Nirav Modi. Bank officials and major diamond merchant Nirav Modi and his accomplices were involved in this case. The bank officials issued the letters to the concerned persons who approached them. The fraud started in 2010, and was detected on  25 January 2018, according to PNB's MD and CEO Sunil Mehta.

What is the latest?

Moneycontrol’s Tarun Sharma has reported that Niten Shahi and Kapil Khandelwal have been sent to police custody till March 5, according to CBI. Eleven were arrested earlier, some are PNB officials and some are directly linked to Nirav Modi's firm.
Nirav Modi wrote to PNB where he said they should not have gone public with the case and that it could have been solved between the two parties.He also wrote to his employees saying that he will not be able to recover their dues.
Nirav Modi's lawyer Vijay Aggarwal said, "When a passport is suspended, a show cause notice is sent by the Ministry of External Affairs (MEA), once we receive that we will know the reasons behind the suspension."
- Supreme Court has deferred the hearing to March 16 because the Centre opposed the petition. The PIL was filed by Vineet Dhanda which seeks for deportation of Nirav Modi for three years and an investigation of the case.
-Nirav Modi’s counsel has said that CBI has written to the court saying that outstanding amount is not Rs 11,000 crore but is Rs 6,000 crore, reports CNBC-TV18. The counsel also said that PNB was aware of the outstanding loans.
- The Reserve Bank of India (RBI) will set up an expert committee to address the rising incidences of frauds and divergences in classification of bad loans.- On the case, Finance Minister Arun Jaitley blames the banks, the auditors and other authorities.
  • February 22, 2018 / 09:55 PM IST

    Mehul Choksi did not respond of summon issued by the Enforcement Directorate on February 15, reports Moneycontrol’s Tarun Sharma.

  • February 22, 2018 / 08:09 PM IST

    Nirav Modi has refused to appear before the Enforcement Directorate after summons were issued to him on February 15, Moneycontrol's Tarun Sharma has reported.

    CNBC TV18 has reported that ED’s Mumbai Office has receives an email from Nirav Modi. Nirav Modi has told ED that he is occupied with business activities and so is unable to appear before it. ED is likely to serve fresh summons to Nirav Modi.

  • ADVERTISEMENT
  • February 22, 2018 / 08:08 PM IST
  • February 22, 2018 / 07:57 PM IST
  • February 22, 2018 / 07:46 PM IST

     Income Tax Department has attached Gitanjali Group's SEZ property worth Rs 1,200 crore.

  • ADVERTISEMENT
  • February 22, 2018 / 05:35 PM IST

     ED seizes Rs 100 crore deposits, luxury cars of Nirav Modi, Mehul Choksi

    The Enforcement Directorate (ED) has said it has frozen shares, deposits and luxury cars worth over Rs 100 crore of the Nirav Modi and Mehul Choksi groups in connection with a money laundering probe against them in the Rs 11,400-crore alleged PNB fraud.

    Enforcement Directorate officials said they have frozen mutual funds and shares worth Rs 86.72 crore belonging to Choksi and his group and Rs 7.80 crore owned by the Modi group.

    While the total value of these shares and mutual funds is Rs 94.52 crore, the costly four-wheelers are worth a few crore and hence the total seizure value stands to be over Rs 100 crore, the officials said.

    The total seizure in the case is now Rs. 5,826 crore, which the agency has said is being independently valued. (PTI)

  • February 22, 2018 / 05:20 PM IST

    The Ministry of External Affairs has said that it does not know the location of Nirav Modi and that ‘he can be anywhere’, according to news reports.

  • February 22, 2018 / 04:38 PM IST
  • ADVERTISEMENT
  • February 22, 2018 / 04:37 PM IST

     Enough assets to meet any liability, says scam-hit PNB

    State-owned Punjab National Bank (PNB) has said that it has followed lawful avenues to recover its dues following Rs 11,400 crore swindling of funds allegedly by jewellery designer Nirav Modi and associates.

    The country's second largest public sector lender also reaffirmed that it has enough assets to meet any liability. (PTI)

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