The bank plans to approach other jurisdictions where Nirav Modi and his associates have assets and properties as part of recovery process, a senior PNB official said.
Diamond merchants Nirav Modi and his uncle Mehul Choksi are alleged to have perpetrated the country's biggest banking sector scam at Punjab National Bank, mainly by way of issuance of fraudulent Letters of Undertaking (LoUs).
The government’s claim each time a scam has taken place is that the law will take its own course. There is invariably a lot of sound and fury – signifying nothing
Insurance companies are witnessing a rise in demand for errors and omissions as well as directors and officers liabilities cover from financial institutions
A high-level group constituted by the institute is studying specifically the systemic issues involved in the PNB fraud and would also suggest remedial measures for strengthening the banking system.
The agency questioned three officials from foreign branches of Indian banks, which had given credit facilities to the companies of absconding billionaire jewellers Nirav Modi and Mehul Choksi, on the basis of Letters of Undertaking (LoUs) issued by Punjab National Bank's Brady House branch in Mumbai.
A special CBI court here today issued a judicial request to be sent to the UK after the central probe agency moved a petition, seeking to attach a bank account of beleaguered diamond trader Nirav Modi, a key accused in the Rs 12,700-crore fraud in the Punjab National Bank (PNB).
The bank has enough resources and capability to meet the challenges posed by the fraud of this nature, he said. "We said this is problem of the bank and we will solve it ourself. We are not seeking government's help by way of capitalisation," he said, when asked if the bank has sought help from the majority shareholder to tide over the problem of fraud.
India's Minister of State for External Affairs V K Singh told parliament last week that "the ministry has sought the provisional arrest of Nirav Deepak Modi by the government of the Hong Kong Special Administrative Region (HKSAR), the People's Republic of China."
The decision to build a highway will push up prices of land adjoining the road. That does not mean the government is in cahoots with land owners. Similar is the case with the 80:20 scheme.
CBI has questioned officers from Allahabad Bank’s Hong Kong branch in relation to the extension of credit facilities on the basis of letter of undertaking (LoUs) issued by PNB.
The bank has received tremendous support from the government, other stakeholders and employees to come out of the situation, Mehta told PTI in an interview
Modi and his uncle Mehul Choksi, in connivance with certain bank officials, allegedly cheated PNB of over Rs 13,000 crore through fraudulent Letters of Undertaking
A lot happened in banking this week.
The whereabouts of Modi and his uncle Mehul Choksi, the other person accused in India's biggest banking fraud at the country's second-largest state lender, have been unknown since the Central Bureau of Investigation (CBI) launched an investigation in February.
The Ministry of External Affairs has submitted a request to Hong Kong authorities for provisional arrest of Nirav Modi, wanted in connection with PNB loan fraud, the government said today.
We list some of the biggest financial scams in India
PNB has argued that the “truncated” sale of assets proposed by Firestar Diamond and other firms will affect the recovery of creditors.
The bank's first phase of integration of the SWIFT platform with its own core banking solution will become operational from April 3.
In an response to Mumbai-based RTI activist Anil Galgali the bank has cited section 8(1)(h) of the RTI Act to deny the information sought by him.
The bank is exploring all options for the recovery, including participating in the bankruptcy proceeding of Firestar Diamond Inc, sources said.
Officials said the Enforcement Directorate along with the CBI launched fresh searches on March 22 at the Samudra Mahal luxury residential flats of Modi in Mumbai's Worli area which resulted in the recovery of fresh valuables.
SWIFT said GPI accounts for 10 percent of cross border payment traffic and is enabling more than a hundred billion dollars to be transferred across the world rapidly and securely every day
A case in point is the Union Cabinet’s decision to set up the National Financial Reporting Authority (NFRA) to oversee accounting and auditing practices at all listed and large unlisted companies.
The state-owned PNB has been defrauded of over USD 2 billion by fraudulent use of Letters of Undertaking (LoUs) allegedly by Nirav Modi and his associates.