PNB scam: CBI names Mehul Choksi as 'wanted'

Punjab National Bank reports huge loss of Rs. 13417 crore in Q4

PNB plunges to 52-week low as bad loans mount

With regards to provision made for the loss incurred on account of Nirav Modi fraud, the bank said it provided for Rs 7,178 crore, 50 per cent of the total amount of Rs 14,356 crore in the fourth quarter of 2017-18. They were all arrested along with Gokulnath Shetty in this case and are now in judicial custody.

Incidentally, BDO India LLP, the firm engaged by PNB to conduct a forensic investigation into the fraud committed by Modi and his companies, has also shared its findings with the United States bankruptcy court.

The agency also named PNB Executive Directors K.V. Brahmaji Rao and Sanjiv Sharan, and General Managers Nehal Ahad (who dealt in worldwide operations) and Rajesh Jindal in its chargesheet filed in a special CBI court here.

He said the whole system at PNB has failed and the top management has to take responsibility given the magnitude of the fraud. Furthermore, the forensic report flagged off "certain suspicious entities", including Fancy Creations Company, World Diamond Distribution, FZE, Eternal Diamond Corp, Empire Gems FZE, Pacific Diamonds FZE and Tri Color Gems, that were beneficiaries of the LoUs.

Interestingly, the daily added that these developments come days after the assets of A. Jaffe were auctioned and sold for about $8 million.

CBI filed the chargesheet just before the 90-day period to file charges.

For the unversed, the PNB detected the multi-crore scam, wherein Diamantaire Nirav Modi and his uncle cum business partner Mehul Choksi had allegedly cheated the bank to the tune of Rs. 114 billion, with the purported involvement of a few employees of the bank.

Both Modi and Choksi have denied any wrongdoing.

Sources have told India Today that four senior bank officials named by CBI in its first chargesheet have been named again in this chargesheet.

"The Central government's decision to keep away Ananthasubramanian, Managing Director and CEO of Allahabad Bank and the two Executive Directors in PNB from their banks is a welcome decision".

It is alleged that the accused PNB officials, in a conspiracy with private persons, had sent the unauthorised LoUs and Foreign Letters of Credit to overseas branches of Indian banks for release of funds to the accused companies' suppliers or to clear the liabilities of the accused companies.

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