Latest updates
The CBI has registered an FIR against Gitanjali Group of companies of Mehul Choksi (Nirav Modi's uncle and alleged partner) based PNB's complaint. Three companies of Mehul Choksi have been named in the FIR: Gitanjali Gems, Gili India and Nakshatra Brand Ltd. Fresh CBI FIR involves 143 LoUs and 224 foreign letters of credit, which are separate from the earlier 150 LoUs.
Extending losses for the third consecutive day, PNB's shares slipped almost five percent during the mid-afternoon trade session on Friday. Stocks of jewellery company Gitanjali Gems also plunged almost 20 percent. The shares of Punjab National Bank (PNB) — the second largest public sector bank in India — started to decline after the fraud was detected.
The CBI has reached former PNB Deputy Manager Gokulnath Shetty's residence in Malad. Shetty has been untraceable since few days.
Evidence has emerged of an additional Rs 3,000 crore exposure of 17 banks in the Nirav Modi case. Sources told The Indian Express that these banks lent about Rs 3,000 crore to various firms associated with Modi, including his flagship firm Firestar International Ltd. The list of banks includes, besides PNB, Central Bank of India, Dena Bank, Vijaya Bank, Bank of India, Syndicate Bank, Oriental Bank of Commerce, Union Bank of India and IDBI Bank and Allahabad Bank.
Sources in the Finance Ministry are saying that the recapitalisation of the Punjab National Bank will not be impacted by the fraud case
Eight employees of Punjab National Bank have been suspended; total number of suspended employees now stands at 18.
The ED on Friday issued summons for appearance to billionaire diamond merchant Nirav Modi and his business partner Mehul Choksi in connection with its money laundering probe, officials said. They said both Modi and Choksi were summoned under the Prevention of Money Laundering Act (PMLA) and asked to depose within a week's time. The notices were handed over to the directors of the firms of the two businessmen as they were not in the country.
NDTV reported that Nirav Modi is staying in a suite at the JW Marriott's Essex House in Manhattan, New York, a short walk away from his luxurious Madison Avenue jewellery retail store.
The INTERPOL has issued a diffusion notice Nirav Modi, his wife Ami Modi, brother Nishal Modi & Mehul Choksi.
A parliamentary panel on Thursday questioned the finance ministry officials about the $1.77 billion fraud in the state-owned Punjab National Bank (PNB) and asked them to submit a report on it.
The Parliamentary Standing Committee on Finance, which met to deliberate upon the demands for grant, on Thursday asked the ministry officials including Secretary of Financial Services Rajiv Kumar that how can the tax payers' money be used for recapitalising the bank which is not well managed.
"Members expressed their concern over such large scale fraud in the PNB and questioned the recapitalisation process of the state-run banks when they are not well managed and tax payers money is leaking," a member who was present in the meeting said.
The committee is headed by senior Congress leader Veerappa Moily and former prime minister Manmohan Singh is also a member.
File image of Nirav Modi. Courtesy - News18
"The committee has asked the finance ministry officials to submit a report before the panel on this fraud," another member who was present in the meeting told PTI.
Meanwhile, during the meeting, when asked, the finance ministry officials indicated that the health insurance scheme announced in the budget was included at the last moment, a member said.
The PNB issue came up as the state-owned bank had on Wednesday said it detected a $1.77 billion (about Rs 11,400 crore) scam in which billionaire jeweller Nirav Modi allegedly acquired fraudulent letters of undertaking from one of its branches for overseas credit from other Indian lenders.
PNB has suspended 10 officers and referred the matter to CBI for investigation.
While PNB did not name the other lenders, Union Bank of India, Allahabad Bank and Axis Bank are said to have offered credit based on letters of undertaking (LOUs) issued by PNB.
An LOU is a letter of comfort issued by one bank to branches of other banks, based on which foreign branches offer credit to buyers.
Foreign bank branches too are under investigation.
Last week, PNB had lodged an FIR with the CBI stating that fraudulent LoUs worth Rs 280.7 crore were first issued on 16 January. At the time, PNB had said it was digging into
records to examine the magnitude of the fraud.
In the complaint, PNB had named three diamond firms — Diamonds R Us, Solar Exports and Stellar Diamonds — saying they had approached it on January 16 with a request for buyers' credit for making payment to overseas suppliers.
With inputs from agencies
Published Date: Feb 16, 2018 17:43 PM | Updated Date: Feb 16, 2018 17:41 PM
Highlights
MEA says Nirav Modi cannot move out of the country after suspension of passport
MEA clarifies Nirav Modi was at Davos in his personal capacity
At a press briefing, MEA spokesperson Raveesh Kumar said that Nirav Modi and other Indian CEOs were at Davos on their own. He further added that the Narendra Modi's impromptu meeting was not in any way an endorsement of Nirav Modi or his business.
CBI carries out searches in 26 places across India after naming 3 companies in fresh FIR registered in PNB fraud case, reports PTI
Revenue secretary says Dinesh Dubey resigned in 2013 saying he was 'unhappy over something'
Ex-CBI director says not necessary Nirav Modi will be extradited because of Interpol notice
Prakash Javadekar says Nirav Modi fraud not a govt scam
Asserting that the Centre is "making sure" that the money will be recovered, Union minister Prakash Javadekar said, "What UPA did was destroy the banking system. Coal scam, 2G, CWG are all government scams and they are not comparable with Nirav Modi scam(which allegedly began at a bank)."
Nirav Modi scam has come to light because of our efforts: Centre
"All the wrong loans were sanctioned under the UPA government and it was passed on to us. We have not stopped any of the investigating agencies. This is one of the scams under the UPA. There is a difference between government scams and bank scams. They even have a party scam. It has come to light because of our alertness and our efforts to make banking systems transparent," Union minister Prakash Javadekar said at a press conference.
BJP counters Congress attack
"Rahul Gandhi was at Nirav Modi's 2013 exhibition and immediately Allahabad Bank gets notified about the fraud. Dubey wrote to all the important ministries in the Centre at that time. Finance secretary instead suggested Dubey to resign. This is the story. We want to ask, who pressurised the finance secretary? This is a UPA 'ghotala'," Prakash Javadekar said at a press briefing.
Highlights of Congress briefing on Nirav Modi scam
Bank Loot has peaked to Rs 21,306 cr
Everyone in Modi government was aware of the fraud being committed
Prime minister knows Mehul Choksi
Agencies looked on as Nirav Modi 'fled'
How did the fraud detecting mechanism fail?
Banks ignored red flags
Sidharth Malhotra denies reports on cancelling contract with Nirav Modi, says it ended a year ago
Whistleblower Dinesh Dubey says he had sent dissent note against Gitanjali Gems to Centre, RBI in 2013
Ex-CBI director says it could take months or even years to track Nirav Modi's overseas money trail
Congress says Narendra Modi knows Mehul Choksi
"From 7 May 2015 to May 2017, everybody knew about the fraud. They were even informed that this fraudster will flee. It is likely that Prime Minister Narendra Modi knows Mehul Choksi," Randeep Surjewala said on Thursday.
The Congress then played a video of one of Narendra Modi's 2015 address as evidence that he is familiar with Choksi. "Why is the Centre denying it?" asked Surjewala.
Congress says total scam worth Rs 21,306 crore
At a press conference, Congress spokesperson Randeep Surjewala said that in the past 24 hours, the biggest fraud in India has been exposed. He added that the scam is worth Rs 21,306 crore
"UDAAN word is Narendra Modi's buzzword, Any scamster can flee and fly," said Surjewala said.
Congress begins press briefing on Nirav Modi scam
Nirav Modi postponed plans to flee country due to demonetisation, CNN-News18 quotes CBI sources as saying
Unpublished data shows India's fraud problems extend far beyond PNB
Investors may have been shocked when one of India’s biggest banks disclosed a $1.77 billion fraud by a billionaire jeweller, but the central bank has recorded data that shows the problem runs far deeper and wider.
Reserve Bank of India (RBI) data, obtained through an RTI request, shows state-run banks have reported 8,670 “loan fraud” cases totalling Rs 612.6 billion over the last five financial years up to March 31, 2017.
The figures expose the magnitude of the problem in a banking sector already under pressure after years of poor lending practices. Bad loans surged to a record peak of nearly $149 billion in 2017.
Bank loan frauds have steadily increased as well, reaching Rs 176.34 billion in the latest financial year from Rs 63.57 billion in 2012-13, according to the data, which doesn’t include the PNB case.
Reuters
Rahul Gandhi attended Nirav Modi's event in same month Dinesh Dubey was forced to resign, alleges rebel Congress leader Shehzad Poonawalla
Rahul Gandhi takes a dig at Narendra Modi over Nirav Modi's 'escape'
PNB should reveal due diligence on Rs.1,700 cr loan to Nirav Modi: AIBEA
Only the naive would believe that just two officials were involved in the $1.8 billion fraud in Punjab National Bank (PNB) and that the whole bank was in the dark for the past seven years, said a top leader of a major bank union.
He also asked the PNB management to reveal what kind of due diligence was done on diamond trader Nirav Modi and his companies before extending a loan of Rs 1,700 crore.
"The PNB management is blaming other banks for not sharing details of their due diligence done on Modi's business. The $1.8 billion fraud is done on non-fund based transaction. The PNB management has to clarify what kind of due diligence it had done while lending to Modi's firms a sum of Rs 1,700 crore," CH Venkatachalam, General Secretary at All India Bank Employees' Association (AIBEA) said.
IANS
Validity of passports belonging to Nirav Modi, Mehul Choksi suspended, both given a week's time to respond
CBI has registered an FIR against Gitanjali Group of companies of Mehul Choksi (Nirav Modi's uncle and alleged partner) based on complaint of PNB
Who assumes the liability?
PNB has said the transactions are “contingent” in nature, and it will decide on the liability based on the law and the genuineness of underlying transactions, reported Reuters.
Banking sources have said several other banks who have extended loans based on the PNB LoUs that were later found to be fraudulent are at risk of losing money. Some of the banks say PNB is liable to pay since it issued the LoUs, although PNB, in a 12 February “caution notice” addressed to chief executives of 30 banks, including two foreign banks, said the other banks also have a share in the blame as they “overlooked” certain Indian central bank rules.
It also said none of the overseas branches of India-based banks had shared with PNB any documents or information at the time of extending buyers’ credit to the companies. PNB said Nirav Modi had written to the bank but had yet to offer any formal proposal for a repayment.
Banks will have to be equipped with better risk management as NPAs pile-up
The Reserve Bank of India (RBI) must feel like Cassandra gifted with the ability to tell the future, but cursed that her prophecies would never be believed (she is a character in the Greek myth The Iliad, and sister of one of the main protagonists, Hector, Prince of Troy). The latest example is the Rs 11,000 crore plus fraud perpetrated in a Mumbai branch of Punjab National Bank.
Click here to read more
Sources in the Finance Ministry are saying that the recapitalisation of the Punjab National Bank will not be impacted by the fraud case
Priyanka Chopra denies claims of suing Nirav Modi but aims to terminate contract
A spokesperson for Priyanka Chopra said: "There are speculative reports that Priyanka Chopra has sued Nirav Modi. This is not true. However, she is currently seeking legal opinion with respect to terminating her contract with the brand in light of allegations of financial fraud against Nirav Modi."
Although Firstpost could not independently verify the news, there have been several reports suggesting that Priyanka's management had alleged that she wasn't paid the amount the two parties had agreed on.
Click here to read more
UPA govt could've avoided Nirav Modi scam in 2013, says ex-Allahabad Bank director who blew whistle against loan
Dinesh Dubey, a journalist by profession, exclusively spoke to Firstpost exposing the deep-rooted corruption in the banking system and how the UPA government turned a blind eye to illegitimate loan sanctions.
"When I opposed the Gitanjali Gems loan proposal, my fight with Allahabad Bank board got really intense and dirty. They tried to persuade, mollify and even threaten me but I said such loans to the corporates without recovery will only add to more non-performing assets. I also wrote to the Reserve Bank of India and secretary, financial services in the Ministry of Finance in my effort to warn them of a massive scam looming large. My request was to take immediate preventive action and keep a watch on all the companies linked to Choksi's firm, as they were accumulating loans without making payments to the bank," Dubey said.
Click here to read more
Eight employees of Punjab National Bank suspended; total number of suspended employees now stands at 18
ED officials sceptical of bank's whistle-blower claim, warn of more skeletons in closet
Enforcement Directorate (ED) officials said they were baffled when the top boss of Punjab Nationa Bank claimed that the bank was both whistle-blower and victim. The ED has sought documents related to SWIFT payments as such transactions are verified to ascertain FEMA provisions. The verification sometimes takes a week before the final clearance is granted
Secondly, ED investigators want to know whether these LoUs were even once — at any point of time over the past seven years — returned to the originating bank branch for verification, and if so, whether or not these transactions were flagged in the annual audit report of the bank’s foreign exchange department.
Click here to read more
ED issues summons for appearance against Nirav Modi
The ED on Friday issued summons for appearance to billionaire diamond merchant Nirav Modi and his business partner Mehul Choksi in connection with its money laundering probe, officials said. They said both Modi and Choksi were summoned under the Prevention of Money Laundering Act (PMLA) and asked to depose within a week's time. The notices were handed over to the directors of the firms of the two businessmen as they were not in the country.
What is a diffusion notice?
"This (diffusion) is less formal than a notice but is also used to request the arrest or location of an individual or additional information in relation to a police investigation. A diffusion is circulated directly by an NCB (CBI in this case) to the member countries of their choice, or to the entire INTERPOL membership and is simultaneously recorded in Interpol’s Information System," the website of Interpol says.
Raids on Nirav Modi's boutiques continue
INTERPOL issues diffusion notice against Nirav Modi
Nirav Modi in New York, claims report
NDTV reported that Nirav Modi is staying in a suite at the JW Marriott's Essex House in Manhattan, New York, a short walk away from his luxurious Madison Avenue jewelry retail store.
CBI seeks revocation of Nirav Modi's passport
The CBI has sought revocation of the passports of billionaire jewellery designer Nirav Modi and his partner Mehul Choksi who are the main accused in alleged fraudulent transactions, officials told PTI. Nirav Modi, who holds an Indian passport, left India on 1 January, while his brother Nishal, a Belgian citizen, departed from the country on same day.
Updates for 16 February start here
Crony capitalism flourishing in Modi govt, says CPM's Prakash Karat
Congress' press conference should actually be directed against UPA govt, BJP national spokesperson Nalin Kohli tells Firstpost
Nirav Modi is an Indian citizen by his brother and wife are not, say officials
Nirav Modi, who is believed to be in Switzerland, was also present in a group photo of Indian CEOs with Prime Minister Narendra Modi, issued by the Press Information Bureau, in World Economic Forum on 23 January, six days before the bank sent its first complaint against him to the CBI, according to the officials.
The diamantaire is an India citizen but his brother Nishal and wife Ami are not Indian nationals, the officials said.
Nirav Modi, a regular feature on the lists of rich and famous Indians since 2013, was booked by the CBI, along with wife, brother and business partner Choksi on 31 January, for allegedly cheating the state-run Punjab National Bank to the tune of Rs 280 crore.
The bank has sent two more complaints to the CBI on Tuesday, saying the scam was worth more than Rs 11,400 crore.
- PTI
Nirav Modi left India with family in first week of Jan
PNB gives CBI a list of 150 Letters of Undertaking which were fraudulently issued to transfer money to firms associated with Nirav Modi, PTI quotes officials as saying.
CBI seized 95 documents during raids in Nirav Modi fraud case
CBI looking into second complaint filed by Punjab National Bank
BJP counters Congress' 'Chota Modi' jibe
"Narendra Modi's shadow will not be harmed because of Randeep Surjewala or Congress. He is loved by the people. And what kind of language is Congress using? 'Chota Modi' jibe is shameful, condemnable and utterly irresponsible," Ravi Shankar Prasad said on Wednesday.
Ravi Shankar Prasad slams Congress for charges against NDA govt
"Jinke ghar aise sheeshe ke ho jo tukde tukde hochuke hai, woh dusre ke ghar pathar na feke(Those who live in house made of broken glass should not throw stones at others' residences," Union minister Ravi Shankar Prasad said at a press conference.
Ravi Shankar Prasad slams Congress over 'Chota Modi' jibe
Union minister Ravi Shankar Prasad hit out at the Congress for linking Nirav Modi's fraud case to Narendra Modi. He said, "The BJP takes strong offence by calling someone 'chota Modi'. It is derogatory and scandalous. Nirav Modi was not the part of the delegation at Davos. He reached there on his own."
He further said that "very good photographs of the Congress leaders with Mehul Choksi is available with us." "But we don't want to stoop to that level," he added.
No one will be spared, says Ravi Shankar Prasad
"Till now, both the CBI and ED has taken speedy action in the wake of complaint made to the CBI. Till now, CBI has raided nine properties belonging to Nirav Modi: 3 in Surat, 4 in Mumbai and 2 in Delhi. Assets worth 13,000 has been seized and action has been taken to revoke his passport. Look out notice has been issued," Union minister Ravi Shankar Prasad said on Wednesday.
He said, "I want to say one thing clearly. No one will be spared. This will be regardless of the status and the status of the accused,"
CBI seals Nirav Modi's Worli residence
India Today reported that among the 40 properties raided by CBI in connection with the alleged fraud involving Nirav Modi, 9 properties belonged to the jeweller.
Why was Nirav Modi part of Narendra Modi delegation at WEF, asks AAP
Speaking at a press conference, members of the Aam Aadmi Party mentioned Vijay Mallya and Nirav Modi, and claimed that before any such businessman becomes a fugitive, he is "seen hanging around the BJP office".
The AAP then asked why Nirav Modi was "part of a delegation" that accompanied the prime minister and sought response from the saffron party on the row. "We think he(Narendra Modi) is busier with speeches and speaking his 'Mann ki Baat'," one of the AAP leaders said.
This is a serious scam of epic proportions, says Congress' Sanjay Jha
Speaking to India Today, Congress leader Sanjay Jha said that the alleged fraud involving jeweller Nirav Modi "is a serious scam of epic proportions".
He addressed the row on Nirav Modi's photograph with Narendra Modi at the World Economic Forum 2018 in Davos, asking how there was no background check done on those posing with the prime minister.
'No meeting between Nirav Modi and Narendra Modi in Davos'
40 properties of Mehul Choksi, Nirav Modi's relatives sealed to prevent documents leak, reports India Today
Highlights of CBI's FIR against Nirav Modi
The CBI FIR dated 31 January, 2018 was based on a complaint filed by Avneesh Nepalia, the Deputy General Manager at Punjab National Bank. It alleged that the partnership firms mentioned in the complaint had gained an amount of Rs 280.70 crore rupees while the bank suffered a wrongful loss of the same magnitude.
The CBI FIR itself lists out the details of the accused. The primary name is that of Nirav Modi who is listed as a partner in M/s Diamond R US, M/s Solar Exports and M/s Stellar Diamonds.
Click here to read more
What was Nirav Modi doing at WEF 2018 with Narendra Modi, asks Congress
CBI issues lookout notices against Nirav Modi, his wife, brother, and Mehul Choksi, reports India Today
Quoting sources, India Today reported that ED will also issue a lookout notice in the coming days.
Priyanka Chopra accuses Nirav Modi of defrauding her: Times Now
Times Now reported that Bollywood actress Priyanka Chopra said that she never got paid for a diamond advertisement.
Priyanka Chopra was Nirav Modi's brand ambassador since January 2017.
PNB stocks tank 9%
Shares of Punjab National Bank today extended its fall for the second straight session, falling as much as 9 percent in morning trade after the lender said it has detected a USD 1.77 billion fraud. The stock opened at Rs 137, then hit a low of Rs 133.45, down 8.47 per cent over its previous closing price. On the NSE, the stock opened at Rs 137.60, then fell 8.57 per cent to Rs 133.35.
This is the second consecutive day of decline for the stock. It had slumped 10 percent yesterday. The state-owned bank said it had detected a USD 1.77 billion (about Rs 11,400 crore) fraud in which billionaire jeweller Nirav Modi allegedly acquired fraudulent letters of undertaking (LoUs) from one of its branches for overseas credit from other Indian lenders. — PTI
Nirav Modi has left India, government sources tell CNN-News18
RBI and Sebi to approach counterpart in HK
The Reserve Bank and the Sebi are likely to approach their counterparts in Hong Kong for cooperation in the matter relating to the whopping over Rs 11,400 crore fraud at public sector lender PNB where several entities have come under the scanner, officials said on Wednesday.
The regulators are set to spread their net overseas as it has been found that credit was availed from various bank branches in Hong Kong on the basis of Letters of Undertaking (LoUs) issued by Punjab National Bank.
Jewellery stocks plunge
At the bourses, Gitanjali Gems plunged nearly 19 percent on reports over its involvement in the PNB fraud case in morning trade after the company came under scanner of various investigating agencies following the Punjab National Bank's declaration of nearly Rs 11,400-crore fraud. The stock today opened on a bearish note at Rs 48, then lost further ground to touch a low of Rs 47.50, down 18.94 per cent over its previous closing price.
CBI books two persons in PNB case
A retired PNB officer and a clerk have been booked by the CBI for helping Nirav Modi, his wife and relatives, a Times of India report said. PNB's retired deputy manager Gokulnath Setty and single window operator Manoj Kharat had issued eight letters of understanding (LoU) worth over Rs 280 crore to Nirav’s company just three months before the former’s retirement, the report said.
A look back at how the scam was carried out
Last week, PNB had lodged an FIR with CBI stating that fraudulent LoUs worth Rs 280.7 crore were first issued on 16 January. At the time, PNB had said it was digging into records to examine the magnitude of the fraud.
In the complaint, PNB had named three diamond firms -- Diamonds R Us, Solar Exports and Stellar Diamonds -- saying they had approached it on January 16 with a request for buyers' credit for making payment to overseas suppliers...
Read full article here: www.firstpost.com/business/pnb-rs-11400-cr-fraud-heres-how-the-state-run-bank-was-victimised-by-fraudsters-4352299.html
17:28 (IST)
MEA says Nirav Modi cannot move out of the country after suspension of passport
17:27 (IST)
MEA clarifies Nirav Modi was at Davos in his personal capacity
At a press briefing, MEA spokesperson Raveesh Kumar said that Nirav Modi and other Indian CEOs were at Davos on their own. He further added that the Narendra Modi's impromptu meeting was not in any way an endorsement of Nirav Modi or his business.
17:20 (IST)
CBI carries out searches in 26 places across India after naming 3 companies in fresh FIR registered in PNB fraud case, reports PTI
17:19 (IST)
Revenue secretary says Dinesh Dubey resigned in 2013 saying he was 'unhappy over something'
17:16 (IST)
Ex-CBI director says not necessary Nirav Modi will be extradited because of Interpol notice
17:11 (IST)
Prakash Javadekar says Nirav Modi fraud not a govt scam
Asserting that the Centre is "making sure" that the money will be recovered, Union minister Prakash Javadekar said, "What UPA did was destroy the banking system. Coal scam, 2G, CWG are all government scams and they are not comparable with Nirav Modi scam(which allegedly began at a bank)."
17:05 (IST)
36 subsidiary companies of the three companies named in FIR under CBI scanner
17:03 (IST)
Nirav Modi scam has come to light because of our efforts: Centre
"All the wrong loans were sanctioned under the UPA government and it was passed on to us. We have not stopped any of the investigating agencies. This is one of the scams under the UPA. There is a difference between government scams and bank scams. They even have a party scam. It has come to light because of our alertness and our efforts to make banking systems transparent," Union minister Prakash Javadekar said at a press conference.
16:57 (IST)
BJP counters Congress attack
"Rahul Gandhi was at Nirav Modi's 2013 exhibition and immediately Allahabad Bank gets notified about the fraud. Dubey wrote to all the important ministries in the Centre at that time. Finance secretary instead suggested Dubey to resign. This is the story. We want to ask, who pressurised the finance secretary? This is a UPA 'ghotala'," Prakash Javadekar said at a press briefing.
16:54 (IST)
Highlights of Congress briefing on Nirav Modi scam
Bank Loot has peaked to Rs 21,306 cr
Everyone in Modi government was aware of the fraud being committed
Prime minister knows Mehul Choksi
Agencies looked on as Nirav Modi 'fled'
How did the fraud detecting mechanism fail?
Banks ignored red flags
16:36 (IST)
Sidharth Malhotra denies reports on cancelling contract with Nirav Modi, says it ended a year ago
16:33 (IST)
Dinesh Dubey says scam that started during UPA rule multiplied 50 times under NDA govt
16:31 (IST)
Whistleblower Dinesh Dubey says he had sent dissent note against Gitanjali Gems to Centre, RBI in 2013
16:27 (IST)
Ex-CBI director says it could take months or even years to track Nirav Modi's overseas money trail
16:23 (IST)
Congress says Narendra Modi knows Mehul Choksi
"From 7 May 2015 to May 2017, everybody knew about the fraud. They were even informed that this fraudster will flee. It is likely that Prime Minister Narendra Modi knows Mehul Choksi," Randeep Surjewala said on Thursday.
The Congress then played a video of one of Narendra Modi's 2015 address as evidence that he is familiar with Choksi. "Why is the Centre denying it?" asked Surjewala.
16:19 (IST)
Congress claims scam can go up to Rs 30,000 crore
16:18 (IST)
Congress says total scam worth Rs 21,306 crore
At a press conference, Congress spokesperson Randeep Surjewala said that in the past 24 hours, the biggest fraud in India has been exposed. He added that the scam is worth Rs 21,306 crore
"UDAAN word is Narendra Modi's buzzword, Any scamster can flee and fly," said Surjewala said.
16:11 (IST)
Congress begins press briefing on Nirav Modi scam
16:02 (IST)
Visuals from Youth Congress' protests in Delhi over govt inaction PNB scam
15:58 (IST)
Nirav Modi postponed plans to flee country due to demonetisation, CNN-News18 quotes CBI sources as saying
15:56 (IST)
Transactions between India and five countries being monitored reportedly
15:47 (IST)
Unpublished data shows India's fraud problems extend far beyond PNB
Investors may have been shocked when one of India’s biggest banks disclosed a $1.77 billion fraud by a billionaire jeweller, but the central bank has recorded data that shows the problem runs far deeper and wider.
Reserve Bank of India (RBI) data, obtained through an RTI request, shows state-run banks have reported 8,670 “loan fraud” cases totalling Rs 612.6 billion over the last five financial years up to March 31, 2017.
The figures expose the magnitude of the problem in a banking sector already under pressure after years of poor lending practices. Bad loans surged to a record peak of nearly $149 billion in 2017.
Bank loan frauds have steadily increased as well, reaching Rs 176.34 billion in the latest financial year from Rs 63.57 billion in 2012-13, according to the data, which doesn’t include the PNB case.
Reuters
15:41 (IST)
Whistleblower Dinesh Dubey seeks proper probe on loan scam
15:34 (IST)
Rahul Gandhi attended Nirav Modi's event in same month Dinesh Dubey was forced to resign, alleges rebel Congress leader Shehzad Poonawalla
15:28 (IST)
15:04 (IST)
Visuals from one of Nirav Modi's properties in Jaipur
15:01 (IST)
Rahul Gandhi takes a dig at Narendra Modi over Nirav Modi's 'escape'
14:59 (IST)
PNB should reveal due diligence on Rs.1,700 cr loan to Nirav Modi: AIBEA
Only the naive would believe that just two officials were involved in the $1.8 billion fraud in Punjab National Bank (PNB) and that the whole bank was in the dark for the past seven years, said a top leader of a major bank union.
He also asked the PNB management to reveal what kind of due diligence was done on diamond trader Nirav Modi and his companies before extending a loan of Rs 1,700 crore.
"The PNB management is blaming other banks for not sharing details of their due diligence done on Modi's business. The $1.8 billion fraud is done on non-fund based transaction. The PNB management has to clarify what kind of due diligence it had done while lending to Modi's firms a sum of Rs 1,700 crore," CH Venkatachalam, General Secretary at All India Bank Employees' Association (AIBEA) said.
IANS
14:47 (IST)
14:43 (IST)
Nirav Modi's showroom in Mumbai's Kala Ghoda raided
14:27 (IST)
Validity of passports belonging to Nirav Modi, Mehul Choksi suspended, both given a week's time to respond
12:33 (IST)
CBI has registered an FIR against Gitanjali Group of companies of Mehul Choksi (Nirav Modi's uncle and alleged partner) based on complaint of PNB
12:28 (IST)
Who assumes the liability?
PNB has said the transactions are “contingent” in nature, and it will decide on the liability based on the law and the genuineness of underlying transactions, reported Reuters.
Banking sources have said several other banks who have extended loans based on the PNB LoUs that were later found to be fraudulent are at risk of losing money. Some of the banks say PNB is liable to pay since it issued the LoUs, although PNB, in a 12 February “caution notice” addressed to chief executives of 30 banks, including two foreign banks, said the other banks also have a share in the blame as they “overlooked” certain Indian central bank rules.
It also said none of the overseas branches of India-based banks had shared with PNB any documents or information at the time of extending buyers’ credit to the companies. PNB said Nirav Modi had written to the bank but had yet to offer any formal proposal for a repayment.
12:06 (IST)
Additional exposure of Rs 3,000 crores in the Nirav Modi case
Evidence has emerged of an additional Rs 3,000 crore exposure of 17 banks in the Nirav Modi case. Sources told The Indian Express that these banks lent about Rs 3,000 crore to various firms associated with Modi, including his flagship firm Firestar International Ltd. The list of banks includes, besides PNB, Central Bank of India, Dena Bank, Vijaya Bank, Bank of India, Syndicate Bank, Oriental Bank of Commerce, Union Bank of India and IDBI Bank and Allahabad Bank.
11:57 (IST)
Banks will have to be equipped with better risk management as NPAs pile-up
The Reserve Bank of India (RBI) must feel like Cassandra gifted with the ability to tell the future, but cursed that her prophecies would never be believed (she is a character in the Greek myth The Iliad, and sister of one of the main protagonists, Hector, Prince of Troy). The latest example is the Rs 11,000 crore plus fraud perpetrated in a Mumbai branch of Punjab National Bank.
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11:46 (IST)
Sources in the Finance Ministry are saying that the recapitalisation of the Punjab National Bank will not be impacted by the fraud case
11:39 (IST)
Priyanka Chopra denies claims of suing Nirav Modi but aims to terminate contract
A spokesperson for Priyanka Chopra said: "There are speculative reports that Priyanka Chopra has sued Nirav Modi. This is not true. However, she is currently seeking legal opinion with respect to terminating her contract with the brand in light of allegations of financial fraud against Nirav Modi."
Although Firstpost could not independently verify the news, there have been several reports suggesting that Priyanka's management had alleged that she wasn't paid the amount the two parties had agreed on.
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11:30 (IST)
UPA govt could've avoided Nirav Modi scam in 2013, says ex-Allahabad Bank director who blew whistle against loan
Dinesh Dubey, a journalist by profession, exclusively spoke to Firstpost exposing the deep-rooted corruption in the banking system and how the UPA government turned a blind eye to illegitimate loan sanctions.
"When I opposed the Gitanjali Gems loan proposal, my fight with Allahabad Bank board got really intense and dirty. They tried to persuade, mollify and even threaten me but I said such loans to the corporates without recovery will only add to more non-performing assets. I also wrote to the Reserve Bank of India and secretary, financial services in the Ministry of Finance in my effort to warn them of a massive scam looming large. My request was to take immediate preventive action and keep a watch on all the companies linked to Choksi's firm, as they were accumulating loans without making payments to the bank," Dubey said.
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11:25 (IST)
Eight employees of Punjab National Bank suspended; total number of suspended employees now stands at 18
11:20 (IST)
ED officials sceptical of bank's whistle-blower claim, warn of more skeletons in closet
Enforcement Directorate (ED) officials said they were baffled when the top boss of Punjab Nationa Bank claimed that the bank was both whistle-blower and victim. The ED has sought documents related to SWIFT payments as such transactions are verified to ascertain FEMA provisions. The verification sometimes takes a week before the final clearance is granted
Secondly, ED investigators want to know whether these LoUs were even once — at any point of time over the past seven years — returned to the originating bank branch for verification, and if so, whether or not these transactions were flagged in the annual audit report of the bank’s foreign exchange department.
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11:13 (IST)
ED issues summons for appearance against Nirav Modi
The ED on Friday issued summons for appearance to billionaire diamond merchant Nirav Modi and his business partner Mehul Choksi in connection with its money laundering probe, officials said. They said both Modi and Choksi were summoned under the Prevention of Money Laundering Act (PMLA) and asked to depose within a week's time. The notices were handed over to the directors of the firms of the two businessmen as they were not in the country.
11:07 (IST)
How BJP lost the political narrative and ended up with full ownership of a Congress legacy
The straightforward narrative which emerges is — that billionaire Nirav Modi, the man who has been accused of defrauding Indian banks to the tune of Rs 11,000 crore, has been allowed to leave the country’s shores. The optics of a fat cat living the high life abroad after looting crores of public money while the average citizen is hounded for a missed instalment are deeply damaging.
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11:04 (IST)
RECAP: Union minister Ravi Shankar Prasad claimed that the government had taken 'strictest' and 'fastest' action against Nirav Modi
The NDA government has taken "strictest" and "fastest" action against jeweller Nirav Modi accused of duping the state-owned Punjab National Bank (PNB) of thousands of crores but the Congress was doing politics over national interest, Union Law Minister Ravi Shankar Prasad had said on Thursday.
Addressing a press conference, Prasad said that the scam started in 2011 when the Congress-led United Progressive Alliance (UPA) government was in power and is the "latest in line in the legacy of corruption and fraudulence left by the Congress Party".
10:59 (IST)
What is a diffusion notice?
"This (diffusion) is less formal than a notice but is also used to request the arrest or location of an individual or additional information in relation to a police investigation. A diffusion is circulated directly by an NCB (CBI in this case) to the member countries of their choice, or to the entire INTERPOL membership and is simultaneously recorded in Interpol’s Information System," the website of Interpol says.
10:48 (IST)
Raids on Nirav Modi's boutiques continue
10:46 (IST)
INTERPOL issues diffusion notice against Nirav Modi
10:37 (IST)
Nirav Modi in New York, claims report
NDTV reported that Nirav Modi is staying in a suite at the JW Marriott's Essex House in Manhattan, New York, a short walk away from his luxurious Madison Avenue jewelry retail store.
10:28 (IST)
CBI seeks revocation of Nirav Modi's passport
The CBI has sought revocation of the passports of billionaire jewellery designer Nirav Modi and his partner Mehul Choksi who are the main accused in alleged fraudulent transactions, officials told PTI. Nirav Modi, who holds an Indian passport, left India on 1 January, while his brother Nishal, a Belgian citizen, departed from the country on same day.
10:23 (IST)
Updates for 16 February start here
19:00 (IST)