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.
Some of the ideas being considered include having a separate pre-sanction appraisal and post sanction monitoring teams for credit disbursal to ensure better governance and transparency, official sources said.
The Enforcement Directorate has evidence suggesting that Gitanjali Gems and Nirav Modi companies routed Rs 2,000 crore back into the country through the hawala route, a senior official who did not want to be named, told Moneycontrol.
Choksi had earlier written a similar letter to CBI, in which he had said that he was facing threats from people who he had business relations with.
The submission that Nirav Modi was "indirectly" challenging the case through his company Firestar Diamonds, was made by the ED before a bench of Justices S Muralidhar and I S Mehta.
In case, a person with Director Identification Number (DIN) does not have a passport, the ministry plans to obtain a certificate in the form of declaration that the person does not have the passport, sources said.
A group of over 200 farmers, who arrived in bullock carts at the tract of land at Khandala in Karjat tehsil, ploughed a part of it using a tractor as a symbolic reclaiming of possession.
Attorney General KK Venugopal opposed a suggestion mooted by the top court that the government should submit a stays report on investigation in a sealed cover envelope.
Foreign branches of Indian banks, which are already witnessing some decline in business and increased borrowing costs will also be hurt, said a report by SBI's economic research wing.
In a FIR filed with BS&FC, two LoUs were issued by PNB employees Gokulnath Shetty and Hemant Kharat, who were also named in the complaint filed against Nirav Modi’s companies, to Chandri Papers and Allied Products worth Rs 9,000 crore.
Almost 26 banks, including PNB, had sanctioned credit limits to Nirav Modi's companies, and the total amount may swell to Rs 3,000 crore
Officials said the agency had sought issuance of the Interpol warrant against the two, based on court-issued non-bailable warrants obtained by it in a money laundering case.
The store has attracted more attention from Indian tourists and persons of Indian origin since the allegation of bank-linked frauds surfaced last month.
However, the central bank has allowed issue of letters of credit (LC) and bank guarantees for trade credit for imports into India.
This takes the Delhi-based lender’s total exposure to one of country’s biggest banking frauds up to Rs 13,640 crore from the earlier estimate of Rs 12,700 crore.
PNB, the second-biggest Indian state-run lender, uncovered in January the alleged fraud in which certain bank officials were suspected of colluding with Modi and Choksi to issue fraudulent letters of undertaking (LoUs) for their firms to raise loans from overseas branches of mostly Indian banks.
According to sources, Mehul Choksi and Nirav Modi also used these fake receipts to show fictitious revenue turnover in their books
Even as the banking sector is reeling from the Rs 12,700 cr-PNB scam, there is some good news as the newly formed Bandhan Bank is set to come up with one of the biggest IPOs among banks in a long time.
Till the time of publishing this article, the petition had got 1,18,220 signatures.
Companies belonging to Modi and his uncle Mehul Choksi, who heads the Gitanjali group, have been accused by Punjab National Bank of defrauding the bank of over $2 billion. The bank alleges firms controlled by the duo colluded with rogue PNB staff to secure fraudulent guarantees that were used to raise credit from overseas branches of Indian banks.
A showcause notice has been issued to the duo.
"Nirav Modi is among the drop-offs from this year's the list, along with Papa John's Pizza founder John Schnatter, Christoffel Wiese of South Africa, and Saudi Arabia’s Prince Alwaleed Bin Talal Al Saud," Forbes said.
A bench of Justices S Muralidhar and I S Mehta issued notice to the ED on Firestar Diamond International Private Ltd's plea seeking direction to the agency to supply it several documents, including a copy of the search warrants.
It is alleged that Choksi and Nirav Modi got LoUs and Foreign Letters of Credit issued of Rs 12,636 cr
The contract’s term ends later this year, but Kohli’s agency has assured that the contract wouldn’t be terminated before it ends.