Over 10000 watches seized during Raids connects to Nirav Modi

PNB branch new

Frauds in Indian Banking Landscape

The Enforcement Directorate attached 21 properties of Nirav Modi group, including flats and farmhouses, worth over Rs 523 crore under anti-money laundering law, ANI reported on Saturday.

ED officials have found around 100 current accounts belonging to the Nirav Modi group, which are being probed.

Ltd and seized a stock worth over Rs900 crore.

The total seizure by the ED in the case now stands at Rs 5,870 crore, officials claimed.

In what has been dubbed the biggest loan fraud in India's history, the No. 2 state-run lender PNB has alleged that two employees at a Mumbai branch colluded with firms linked to well-known jewelers Nirav Modi and his uncle, Mehul Choksi.

PNB said this in its response to a mail written by Nirav Modi, who allegedly cheated the bank of Rs 11,400 crore in connivance with a few bank officials.

Modi, who had a chain of boutique stores from NY to Beijing, and his uncle Mehul Choksi are both accused of perpetrating the biggest loan fraud in Indian banking history and are both out of the country.

Jindal, posted as GM, credit, at PNB's headoffice in New Delhi, headed the second largest branch of the bank when the practice of issuing the LoUs without sanctioned limits continued. "The current episode of financial fraud shows gaps in supervision and monitoring systems at the bank level which have the potential to become disruptive for the industry and the financial sector both", Chandrajit Banerjee, Director General, CII, said in a statement. However, should you have any concrete and implementable plan, do revert back,"A the mail said".

In the letter dated February 15, the statutory body also asked the agencies and PNB to share reports or findings in respect of the said alleged fraud including the copies of the specific findings in respect of the involvement of any Chartered Accountant or firm of Chartered Accountants.

It cut PNB's earnings estimate by almost 30 percent for the current fiscal year ending March 31, saying it expected a larger earnings slide in PNB's case due to the fraud-related liability.

The bank reiterated that it had enough assets and capital to meet any liabilities from the fraud.

"We have followed lawful avenues available to us as per law of the land to recover our dues", the bank said in a regulatory filing.

The RBI did not immediately respond to an email seeking comment.

Latest News