Mehul Choksi

It is alleged that Choksi and Nirav Modi got LoUs and Foreign Letters of Credit issued of Rs 12,636 cr

The agency is also investigating plans by the two to list companies.

The agency has arrested two employees and an auditor of the Nirav Modi group of companies, while a director of the Gitanjali group of companies owned by Choksi has also been taken into custody, they said.

The court, set up under the Prevention of Money Laundering Act (PMLA), issued the NBWs on applications filed by the Enforcement Directorate (ED), one of the agencies probing the bank fraud cases registered last month.

The central probe agency issued a provisional order for attachment under the Prevention of Money Laundering Act (PMLA).

The latest announcement from the public sector lender assumes significance against the backdrop of the probe going on into the Rs 11,400 crore scam, which is already one of the biggest in the Indian banking sector.

On February 14, the bank had reported unauthorised transactions worth approximately Rs 11,400 crore after it had detected some fraudulent transactions in its Brady House branch.

Institute constitutes high-powered group to study issues in the case and suggest remedial measures for the banking system.

Full text of the letter written by Mehul Choksi to Gitanjali's employees

Prosecution has already been initiated against promoter Vikram Kothari on suspected tax evasion worth

ED 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 Nirav Modi group.

It also seized nine high-end luxury cars of Modi as part of its investigation against him under the criminal provisions of the Prevention of Money Laundering Act (PMLA).

The CBI has also arrested Manoj kharat, an SWO (single window operator) at PNB and Hemant Bhat, Authorised Signatory of the Nirav Modi Group of Firms.

The CBI, immediately after registering the fresh FIR, carried out raids at 26 locations across six cities covering the premises of 18 Indian subsidiaries of Gitanjali Group owned by Choksi.

The MEA has asked Nirav Modi and Mehul Choksi to respond within one week.

"It will create havoc for a little while and the economy will also destablise. But overall, it is going to be good for the country. In fact, the jewellery industry will thrive as people will have more trust on jewellery than currency notes," Gitanjali Gems Chairman and Managing Director Mehul Choksi told PTI.

NSE had suspended trading activities of 26 entities in July. The exchange had decided to suspend the 'Unique Client Codes' of these entities from trading for a period of six months, or till the conclusion of the probe, whichever is earlier. They were suspended as part of a probe into suspected market manipulations.

Gitanjali, which is facing cash crunch currently and is reportedly seeking Rs 1,000 crore working capital loan from banks following the recent tightening by the Reserve Bank, is also the biggest diamond retailer in the country with 60 per cent of its revenue coming in from this business.

After the pledging of these shares, Choksi's unpledged holding in the company has come down to about 3.19 crore shares or 34.65 percent stake from about 3.28 crore shares equivalent to 35.65 percent stake, the company informed in a filing to the BSE.

The SEBI and the NSE on Thursday banned 26 entities from trading in the stock market. The decision came at a time when both the authorities are conducting an investigation on the trading activity of Gitanjali Gems and Prime Broking Company, a subsidiary of Prime Securities.