Latest update:
Three Punjab National Bank officials arrested by CBI on Saturday produced before Special CBI court, reports ANI.
Congress leader Abhishek Manu Singhvi says that he will file a defamation suit against defence minister Nirmala Sitharaman for her accusations against him in relation to the Punjab National Bank fraud case, reports Times Now. He added that he will address a press conference in Kolkata at 5.30 pm.
Countering Congress' charge that multi-crore bank fraud took place during the BJP government, Defence Minister Nirmala Sitharaman said Rahul Gandhi was present at a promotional event of Gitanjali Jewels and the whole episode took place in the UPA regime.
Sitharaman also said the Congress was wrong in blaming the BJP, as it was them who let out a building to Nirav Modi's Firestar Diamond, which had Anita Singh — the wife of Congress leader Abhishek Manu Singhvi — as one of the directors.
The Enforcement Directorate (ED) on Saturday conducted raids at Nirav Modi's franchise Gitanjali Gems Store in Durgapur, West Bengal. The ED also seized diamond and jewellery worth Rs 3 crore in raids at Gitanjali and Nakshatra Jewellers in Jaipur.
The Aam Aadmi Party (AAP) has alleged that despite Centre's knowledge, banking scam kingpin Nirav Modi was successful in fleeing the country after duping PNB of Rs 11,515 crore, and added that Prime Minister Narendra Modi is answerable for the fraud.
Party leader Dilip Pandey told a media conference in New Delhi that no action was taken against the diamond trader even though the finance ministry and the prime minister knew about Punjab National Bank (PNB)'s complaint against him with the Central Bureau of Investigation (CBI).
Pandey quoted media reports suggesting that Dinesh Dubey, a former Director of Allahabad Bank, had in September 2013 written mails to the deputy governor of Reserve Bank of India (RBI) and the then Financial Services Secretary over unsanctioned loans being given to Mehul Choksi, uncle of Nirav Modi.
But later, Dubey was pressurised to resign, he said.
Representational image. AP
From the Congress era, "junior Modi (Nirav Modi)'s involvement in corruption was known", he said, referring to Prime Minister Modi as "senior Modi".
"Both the Congress and the BJP are blaming each other for the scam and fooling the nation," said Pandey.
"A 'Modi Desh Looto Yojna' is going in this country," he added.
Noting that Nirav Modi was part of a delegation travelling with PM Modi to Davos in January this year, despite the complaint against him and a letter received by the CBI, he said the prime minister and the finance ministry were aware about the scam, yet no action was taken.
"prime minister is the watchman of this country. He should answer the public on this."
AAP Rajya Sabha member ND Gupta said the bank management was also involved in the scam.
"He (Nirav) ran away with the whole family in January. How?," he said.
Published Date: Feb 17, 2018 17:47 PM | Updated Date: Feb 17, 2018 18:03 PM
Highlights
Special CBI court sends all three PNB officials in police custody till 3 March, reports ANI
"When will the finance minister and the prime minister come clean on the Nirav Modi scam?" Congress asks on Twitter
"NDA's cheap sense of politics has reached ludicrous and ridiculous proportions," Abhishek Singhvi says on Twitter in retaliation to Nirmala Sitharaman's charges against him
Three Punjab National Bank officials arrested by CBI on Saturday produced before Special CBI court, reports ANI
Neither my wife, sons nor me have anything whatsoever to do with Gitanjali or Nirav Modi companies, says Abhishek Manu Singhvi
"Nirmala Sitharaman and her colleagues are liable to civil and criminal defamation for making ignorant and patently false allegations," Congress leader Abhishek Manu Singhvi said according to ANI. "Neither my wife, sons nor me have anything whatsoever to do with Gitanjali or Nirav Modi's companies. The company was a tenant of a Kamala Mills properties owned by Adwait Holdings in which my wife and sons are directors," he added.
"Adwait Holding owns a commercial property at Lower Parel, as it does elsewhere, which was rented by Firestone many years ago. Neither Adwait nor my family has any interest with Nirav Modi or Firestone. Firestone vacated Parel's Kamala Mills premises in December 2017," Singhvi further explained.
Govt leaving no stone unturned to nab Nirav Modi: Sitharaman
Nirmala Sitharaman said that the entire might of the government has been invoked to nab Nirav Modi. She said that Centre put all concerned authorities in action immediately after the PNB fraud came to light.
In 2013, Rahul Gandhi attended promotional event of Nirav Modi's franchise: BJP
Congress misleading people over the issue, says BJP
BJP leader and defence minister Nirmala Sitharaman on Saturday, in a press conference, said that Congress' allegations against the Centre are misleading people. She said that repeating lies is a strategy being adopted by Congress.
"Original sin in Nirav Modi fraud was committed in 2011. The Letters of Understand (LoU) hold good only for 90 days. But the accused PNB officer kept rolling the LoUs till he got retired. He didn't put details in banking system which lead to no one detecting the scam," Sitharaman said.
Most of Nirav's Modi's LoU's were issued in 2017-18: CBI
The CBI has said that a majority of the Letters of Understanding (LoUs) in the Punjab National Bank fraud were either issued or were renewed in the bank in 2017-18, The Indian Express reported.
The agency said that many old LoUs too were renewed in 2017. Nirav Modi and his relatives were rolling over the LoU money by getting them renewed, added the report.
ED raids Gitanjali stores in West Bengal and Rajasthan
The Enforcement Directorate (ED) on Saturday conducted raids at Nirav Modi's franchise Gitanjali Gems Store in Durgapur, West Bengal. The ED also seized diamond and jewellery worth Rs 3 crore in raids at Gitanjali and Nakshatra Jewellers in Jaipur.
BJP brought India's economy to its knees, says Kapil Sibal
Sibal said that with ill-intentions, the BJP brought India's economy to its knees. "I challenge BJP to come and talk about UPA's governance and their governance," said the congress leader.
He alleged that in 2015 there was a complaint file regarding the PNB issue but PMO replied that this had been 'dealt with'. "How was it dealt it? This proves that they were aware of all this," asked Sibal
PM should disclose who travells with him on official tours: Sibal
Kapil Sibal takes a dig at Narendra Modi over PNB fraud
Finance ministry knew that the country was being looted, says Kapil Sibal
Sibal said that banks gave loan even though there was no collateral. He asked the government why action was not being taken against loan defaulters. "If India's economic situations worsens, investors will lose trust. Nivar Modi scam can be called ease of doing business. We don't want this kind of ease of doing business," said the congress leader.
Chaukidar of the country is sleeping: Kapil Sibal
Congress leader Kapil Sibal, while taking dig at Prime Minister Narendrs Modi, said that the Chaukidar of the coutry is busy these days. "The situation which has arose today is because Chaukidar is sleeping. How can one say that the prime minister, finance minister did not know about the PNB fraud."
CBI arrests Gokulnath Shetty, former deputy manager of PNB
CBI on Saturday arrested Gokulnath Shetty former deputy manager of Punjab National Bank, Manoj Kharat, single window operator at PNB and Hemant Bhat, Authorised Signatory of the Nirav Modi Group of Firms, said media reports.
Nirav Modi might be holding dual citizenship
Nirav Modi may be holding dual citizenship, according to The Tribune report. Modi and his brother Nishal grew up in Belgium. According to intelligence sources Nishal had surrendered his Indian passport and acquired Belgian citizenship, added the report.
I-T attaches 29 properties, 105 bank accounts of Nirav Modi
The Income Tax Department on Saturday provisionally attached 29 properties and 105 bank accounts of the diamond merchant Nirav Modi, his family and firms as part of its tax evasion probe
CVC summons RBI, finance ministry and PNB bank officials
The Central Vigilance Commission (CVC) has summoned senior officials from the Reserve Bank of India, the finance ministry and the Chief Vigilance Officer of Punjab National Bank (PNB), next week to assess how the fraud reported slipped past all the checks and balances in the system, The Hindu reported.
Gitanjali Gems stocks plunge 20%, PNB slips 2%
Following the $1.8 billion fraud detected by the Punjab National Bank (PNB), stocks of jewellery company Gitanjali Gems on Friday plunged almost 20 percent — hitting its lower circuit — while PNB's shares closed over 2 percent lower.
Stocks of Gitanjali Gems, the luxury jewellery brand promoted by the main accused Nirav Modi's maternal uncle and business partner Mehul Choksi, plunged 19.94 percent to close at Rs 37.55 per share.
"Price-wise, the way the stock of Gitanjali Gems has slipped and the kind of circuit that we are seeing, probably the sequence may continue for some days. From a support perspective, Rs 29-30 is a support," Sacchitanand Uttekar, Assistant Vice-President at Research for Tradebulls, said.
"But with developments in the company going off-track, how much will it hold is something that time will decide," he added.
IANS
Jewellery makers fear may slash lending to industry after Rs 11,000-cr PNB scam banks
Jewellery traders and exporters are apprehending that "ripple effects" of the $1.8 billion fraud involving billionaire diamond trader Nirav Modi's companies could make lenders more cautious and impact credit flow to the industry to some extent, officials said here on Friday.
However, they also said that in the wake of the fraud, the entire gems and jewellery industry should not be blamed or branded as "risky" industry.
"Some ripple effects are bound to happen and it (the fraud) will have some psychological impact on the mind of loan advancers. Whenever a banker is financing someone, he will be more cautious to check out whether there is any possibility of fraud or not. This could impact credit flow to the industry or lead to delay in extending advances," Gem and Jewellery Export Promotion Council (GJEPC) Regional Chairman (Eastern Region) Prakash Chandra Pincha said.
Click here to read more
We will get back to normal within six months: PNB chief
Despite the huge blow of $1.8 billion fraud, India's second largest public sector bank is hopeful of coming out of the problem in the next six months, according to its top official.
"We will get back to normalcy within six months. Bank has the size and capacity to come out of the problem," Sunil Mehta, Managing Director and Chief Executive Officer of Punjab National Bank. told a investors' conference call on Friday.
He said the bank was going through some problems but "we will fix it", adding that the bank "will not spare anyone" involved in the crime.
During the investors' conference call, the bank chief reiterated that the incident was a standalone case. "We are looking at gaps in our existing controls, systems and trying to control them," he added.
IANS
Fraudulent transactions show how vulnerable Indian banks have become: Assocham
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
18:03 (IST)
Special CBI court sends all three PNB officials in police custody till 3 March, reports ANI
18:02 (IST)
Banks make commoners pay for small amounts but turn blind eye to big scams
It would be safe to submit that for the layman the huge numbers of the money swiped from the Punjab National Bank and the skulduggery involved are mystifying. For most of us, banks are hostile and intimidating self-righteous institutions designed to destroy our comfort zones.
To us, figures like Rs 114 billion and Rs 11,000 crore being swindled mean absolutely nothing. These are the same banks that call us at 0600 hours to say that our credit card payment in overdue by one day and if we do not pay they will destroy us and our families. At this very moment, there are roughly 30 million credit card owners in the country with one in four having defaulted and waking up every morning in the red. Nearly three times that number are debit cards.
These plastic cuffs have been liberally handed over to customers through slick and sinister bank advertising packaged as the sun in their lives but in actuality are the chains of financial enslavement.
Full analysis here
17:58 (IST)
The prime minister will have to come forward and provide answer, Rahul Gandhi says about the Nirav Modi scam
17:49 (IST)
Congress leader Abhishek Manu Singhvi releases statement against Nirmala Sitharaman
17:43 (IST)
"Intend to take action against the sections of media who are spreading the news as well," Abhishek Singhvi says
"I intend to file a civil and defamation case against Defence Minister Nirmala Sitharaman and her colleagues who are spreading the defamatory allegations," Congress leader Abhishek Manu Singhvi said in a press briefing in Kolkata. He said that he was in the middle of a wedding when he heard of this news and intends to take legal action against BJP leaders for the allegations charged against Singhvi and his family. "I also intend to take action against the sections of media who are spreading the same," Singhvi added at the presser.
17:38 (IST)
CBI to seek the custody of three Punjab National Bank officials for 14 days
The Central Bureau of Investigation (CBI) to seek the custody of three Punjab National Bank officials for 14 days for further investigation on the grounds that some important documents are yet to be recovered, reports ANI. The report adds that the CBI wants to find the modus operandi of the crime and ascertain the exact magnitude of crime.
In its application, the CBI claims that the fraud is estimated at Rs 6,000 crores, much more than Rs 280 crores reported by the bank. The agency also mentions that Nirav Modi's firm's authorised signatory and PNB employee Hemant Bhatt is not co-operating in the investigation, ANI reports.
17:35 (IST)
BJP is spreading "false, defamatory, distasteful news" in relation to Punjab National Bank case, says Congress leader Abhishek Manu Singhvi
17:24 (IST)
CBI pleads for maximum custody of the three arrested in the Punjab National Bank fraud case, reports News18
17:10 (IST)
"When will the finance minister and the prime minister come clean on the Nirav Modi scam?" Congress asks on Twitter
17:06 (IST)
Shiv Sena fires salvo against BJP
The Shiv Sena said in stinging editorials in the party mouthpieces 'Saamana' and 'Dopahar Ka Saamana' on Saturday that the Punjab National Bank fraud case "lays hollow" Prime Minister Modi's famed slogan -— Na Khaunga, Na Khane Dunga.
"We want to know how he managed to turn up with the group of industrialists who met PM in Davos when a complaint against him had already been lodged by PNB? Perhaps, if his Aadhaar Card had been linked to the bank accounts, this could have been clear," the Sena said, in another jibe. The tragedy is that the common man cannot get hospital treatment or even a funeral without an Aadhaar Card, but a man like Nirav Modi could siphon off Rs 11,500 crore from a bank without an Aadhaar Card, it pointed out.
During the 2014 elections, many rich industrialists stood behind the BJP, but with this scam their characters are laid bare, while the tall claims of a "transparent and corruption-free government" have been blown to tatters in the past four years, it said. "In contrast, poor farmers who cannot repay loans of Rs 100-500 are forced to commit suicides and their lands are seized, but the industrialists who have committed a dacoity of over Rs 150,000-crore on the country are scott free with the blessings of the government," the Sena said sharply.
The country is being run on advertisements and image-building for which crores of rupees are being spent, but when a person like (ex-RBI Governor) Raghuram Rajan spoke about the loot perpetrated in the country, he was shunted out. "Now, install only Nirav Modi as the RBI Governor to finish off the country," the Sena signed off. — IANS
16:57 (IST)
"Sensationalism, ignorance and falsehood has exceeded all limits in this irresponsible charge," Abhishek Singhvi continues his criticism against the BJP
16:53 (IST)
Enforcement Directorate conducts raids at a Nakshatra jewellers showroom of Gitanjali Group in Bhopal, Madhya Pradesh
16:49 (IST)
"NDA's cheap sense of politics has reached ludicrous and ridiculous proportions," Abhishek Singhvi says on Twitter in retaliation to Nirmala Sitharaman's charges against him
16:43 (IST)
Three Punjab National Bank officials arrested by CBI on Saturday produced before Special CBI court, reports ANI
16:41 (IST)
Abhishek Singhvi's son denies allegations made by Nirmala Sitharaman
Allegations are a "falsehood being spread by BJP," Avishkar Singhvi, the son of Congress leader Abhishek Manu Singhvi tells Times Now. "There is no shareholding, no connection to Nirav Modi," Avishkar added.
16:35 (IST)
Suspension of 18 bank officials is not enough, role of higher-ups must be probed
So far, the state-owned Punjab National Bank (PNB), embroiled in the alleged Rs 11,360 crore Nirav Modi scam, has suspended 18 officials whom it found responsible for supervisory lapses. The managing director of the bank Sunil Mehta said the bank has been suffering from some illness since 2011, and now a surgery is being carried out to remove the cancer.
By sacking 18 employees, have Mehta and the PNB been able to fix responsibility? Of course not. As one of the whistleblowers Dinesh Dubey pointed out, the malaise runs deep in the banking system, and the suspension of junior and mid-level employees is just another distraction. Has the government been proactive in directing the Reserve Bank of India (RBI) and the banks involved in this daylight robbery to take action aimed at bringing the top level to justice?
Full analysis here
16:30 (IST)
Neither my wife, sons nor me have anything whatsoever to do with Gitanjali or Nirav Modi companies, says Abhishek Manu Singhvi
"Nirmala Sitharaman and her colleagues are liable to civil and criminal defamation for making ignorant and patently false allegations," Congress leader Abhishek Manu Singhvi said according to ANI. "Neither my wife, sons nor me have anything whatsoever to do with Gitanjali or Nirav Modi's companies. The company was a tenant of a Kamala Mills properties owned by Adwait Holdings in which my wife and sons are directors," he added.
"Adwait Holding owns a commercial property at Lower Parel, as it does elsewhere, which was rented by Firestone many years ago. Neither Adwait nor my family has any interest with Nirav Modi or Firestone. Firestone vacated Parel's Kamala Mills premises in December 2017," Singhvi further explained.
16:19 (IST)
Will file defamation suit against Nirmala Sitharaman, says Abhishek Singhvi
Congress leader Abhishek Manu Singhvi says that he will file a defamation suit against defence minister Nirmala Sitharaman for her accusations against him in relation to the Punjab National Bank fraud case, reports Times Now. He added that he will address a press conference in Kolkata at 5.30 pm.
Sitharaman had said that Fire Star Diamond, a company that Nirav Modi runs, had taken a property which belongs to Advait Holding Ltd on lease. She added that Anita Singhvi was one of the shareholders from 2002. "You know who's wife she is," Sitharaman had said at a press conference. "And also has Avishkar Manas Singhvi, possibly his son. But wife of one of the senior Congress leaders is here as a property shareholder, she is a director by designation," she said, associating Abhishek Singhvi to the PNB fraud case.
16:08 (IST)
Visuals of raid by Enforcement Directorate officials at a Gitanjali Gems store in Durgapur, West Bengal
16:05 (IST)
The Income Tax department freezes 23 bank accounts of Gitanjali. The department has also seized a Gitanjali building in Jaipur, reports News18
15:59 (IST)
'Make Nirav Modi RBI Governor,' Shiv Sena taunts BJP in Saamana editorial
Taunting ruling ally Bharatiya Janata Party, the Shiv Sena on Saturday said absconding scamster Nirav Modi "should be made Reserve Bank of India Governor to finish off the country". Referring to the Punjab National Bank (PNB) fraud which came to light this week, the Sena said it is "clear that Nirav Modi and his family had fled" the country early last month.
"However, just recently (last week of January), this gentleman was seen and photographed with Prime Minister Narendra Modi in Davos (Switzerland)," the Sena said in stinging editorials in the party mouthpieces 'Saamana' and 'Dopahar Ka Saamana' on Saturday.
Nirav was a sympathizer of the BJP and played a leading role in collecting funds for it during the elections, it added. "However, we are not implying that he managed to loot the (PNB) bank with the blessings of BJP leaders or that a share of it (loot) even went to the party coffers. But, Nirav always strived for the BJP's financial prosperity and helped it win elections with the mountains of cash he built," the Sena said sarcastically.
The country is being run on advertisements and image-building for which crores of rupees are being spent, but when a person like (ex-RBI Governor) Raghuram Rajan spoke about the loot perpetrated in the country, he was shunted out. "Now, install only Nirav Modi as the RBI Governor to finish off the country," the Sena signed off. —IANS
15:48 (IST)
The Indian Banking Association to hold a meeting with chiefs of PSU banks via video conferencing in Mumbai on Saturday, reports ANI
15:41 (IST)
Earlier Congress used to benefit from scams, now BJP does, says Arvind Kejriwal
Delhi Chief Minister Arvind Kejriwal on Saturday said that earlier, the Congress used to benefit from scams and now it is the BJP that benefits from them and added that this is the reason why the BJP never sends a Congress member to the jail.
In a tweet, the chief minister said that the Punjab National Bank "scam" started in 2011 and was going on till now. "BJP is putting the blame on Congress and Congress on BJP. But the truth is that all scams during Congress' time are still going on. Earlier, Congress used to make money, now from all those scams BJP makes money. This is the reason why BJP has till today not sent any Congress member to jail," tweeted Kejriwal. — IANS
15:38 (IST)
CVC summons PNB management, finance ministry officials
Following crackdowns by central probe agencies Enforcement Directorate (ED), Central Bureau of Investigation (CBI) and Income Tax (I-T) Department, another law enforcement agency has swung into action in the Punjab National Bank (PNB) fraud case, reports ANI. The Central Vigilance Commission (CVC) has summoned the PNB management and finance ministry officials to appear before it on 19 February.
The report states that the MD and CEO of Punjab National Bank, Sunil Mehta will appear before the body on Monday at 11 am. PNB's Chief Vigilance Officer (CVO) Satish Kumar Nagpal will also join Mehta. The reports adds that the additional secretary, department of financial services will be present on behalf og the finance ministry.
15:30 (IST)
Punjab National Bank fraud case hits equities' movement
The weekly trade in the Indian equity markets was almost flat. However, a slew of domestic developments like a $1.8 billion fraud reported by the Punjab National Bank (PNB) and release of major macroeconomic data impacted the movements of the two key equity indices, analysts said.
On a weekly basis, the barometer 30-scrip Sensitive Index (Sensex) rose a tad by 5 points or 0.01 percent to close at 34,010.76 points. The wider Nifty50 of the National Stock Exchange (NSE) closed trade at 10,452.30 points — a bit lower by 2.65 points or 0.02 percent from its previous week's close.
"The truncated week began with a gap-up opening on Monday; however, bulls failed to keep the momentum and eventually ended the week on lower note as the sentiments got further dented by a $1.77 billion fraud reported by the PNB earlier this week," D.K. Aggarwal, Chairman and Managing Director of SMC Investments and Advisors, told IANS.
PNB shares started to decline after the bank detected a multi-crore fraud case and authorities blamed billionaire diamond trader Nirav Modi for the fraud along with wife Ami, brother Nishal and maternal uncle and business partner Mehul Choksi.
The bank's shares plunged drastically following the news — over 9 percent — along with the stocks of Choksi-promoted jewellery company Gitanjali Gems, which plunged almost 20 percent. —IANS
15:17 (IST)
Despite the clear link with them, Congress party has the audacity to point fingers at BJP: Nirmala Sitharaman
"In this mega banking scam, there are enough and more facts in our hands. With these facts, we and the media wants to ask questions to the Congress party and better educate the people of India regarding the scam," BJP leader Nirmala Sitharaman said at a press conference. "Despite the clear link with them, Congress party has the audacity to point fingers at BJP," she exclaimed, adding that the "entire might" of the government has been invoked to pin the culprit Nirav Modi in the fraud case.
15:03 (IST)
Govt leaving no stone unturned to nab Nirav Modi: Sitharaman
Nirmala Sitharaman said that the entire might of the government has been invoked to nab Nirav Modi. She said that Centre put all concerned authorities in action immediately after the PNB fraud came to light.
14:58 (IST)
In 2013, Rahul Gandhi attended promotional event of Nirav Modi's franchise: BJP
14:55 (IST)
Congress misleading people over the issue, says BJP
BJP leader and defence minister Nirmala Sitharaman on Saturday, in a press conference, said that Congress' allegations against the Centre are misleading people. She said that repeating lies is a strategy being adopted by Congress.
"Original sin in Nirav Modi fraud was committed in 2011. The Letters of Understand (LoU) hold good only for 90 days. But the accused PNB officer kept rolling the LoUs till he got retired. He didn't put details in banking system which lead to no one detecting the scam," Sitharaman said.
14:11 (IST)
Most of Nirav's Modi's LoU's were issued in 2017-18: CBI
The CBI has said that a majority of the Letters of Understanding (LoUs) in the Punjab National Bank fraud were either issued or were renewed in the bank in 2017-18, The Indian Express reported.
The agency said that many old LoUs too were renewed in 2017. Nirav Modi and his relatives were rolling over the LoU money by getting them renewed, added the report.
13:47 (IST)
ED raids Gitanjali stores in West Bengal and Rajasthan
The Enforcement Directorate (ED) on Saturday conducted raids at Nirav Modi's franchise Gitanjali Gems Store in Durgapur, West Bengal. The ED also seized diamond and jewellery worth Rs 3 crore in raids at Gitanjali and Nakshatra Jewellers in Jaipur.
13:36 (IST)
Nirav Modi is close to Prime Minister Narendra Modi, says Congress
Kapil Sibal alleged that Nirav Modi is close to the prime minister. He said that crony capitalism has been institutionalised by the government.
13:19 (IST)
BJP brought India's economy to its knees, says Kapil Sibal
Sibal said that with ill-intentions, the BJP brought India's economy to its knees. "I challenge BJP to come and talk about UPA's governance and their governance," said the congress leader.
He alleged that in 2015 there was a complaint file regarding the PNB issue but PMO replied that this had been 'dealt with'. "How was it dealt it? This proves that they were aware of all this," asked Sibal
13:03 (IST)
PM should disclose who travells with him on official tours: Sibal
13:01 (IST)
Kapil Sibal takes a dig at Narendra Modi over PNB fraud
12:50 (IST)
Finance ministry knew that the country was being looted, says Kapil Sibal
Sibal said that banks gave loan even though there was no collateral. He asked the government why action was not being taken against loan defaulters. "If India's economic situations worsens, investors will lose trust. Nivar Modi scam can be called ease of doing business. We don't want this kind of ease of doing business," said the congress leader.
12:44 (IST)
Chaukidar of the country is sleeping: Kapil Sibal
Congress leader Kapil Sibal, while taking dig at Prime Minister Narendrs Modi, said that the Chaukidar of the coutry is busy these days. "The situation which has arose today is because Chaukidar is sleeping. How can one say that the prime minister, finance minister did not know about the PNB fraud."
12:13 (IST)
CBI arrests Gokulnath Shetty, former deputy manager of PNB
CBI on Saturday arrested Gokulnath Shetty former deputy manager of Punjab National Bank, Manoj Kharat, single window operator at PNB and Hemant Bhat, Authorised Signatory of the Nirav Modi Group of Firms, said media reports.
12:10 (IST)
Nirav Modi might be holding dual citizenship
Nirav Modi may be holding dual citizenship, according to The Tribune report. Modi and his brother Nishal grew up in Belgium. According to intelligence sources Nishal had surrendered his Indian passport and acquired Belgian citizenship, added the report.
12:07 (IST)
I-T attaches 29 properties, 105 bank accounts of Nirav Modi
The Income Tax Department on Saturday provisionally attached 29 properties and 105 bank accounts of the diamond merchant Nirav Modi, his family and firms as part of its tax evasion probe
12:06 (IST)
CVC summons RBI, finance ministry and PNB bank officials
The Central Vigilance Commission (CVC) has summoned senior officials from the Reserve Bank of India, the finance ministry and the Chief Vigilance Officer of Punjab National Bank (PNB), next week to assess how the fraud reported slipped past all the checks and balances in the system, The Hindu reported.
19:06 (IST)
Gitanjali Gems stocks plunge 20%, PNB slips 2%
Following the $1.8 billion fraud detected by the Punjab National Bank (PNB), stocks of jewellery company Gitanjali Gems on Friday plunged almost 20 percent — hitting its lower circuit — while PNB's shares closed over 2 percent lower.
Stocks of Gitanjali Gems, the luxury jewellery brand promoted by the main accused Nirav Modi's maternal uncle and business partner Mehul Choksi, plunged 19.94 percent to close at Rs 37.55 per share.
"Price-wise, the way the stock of Gitanjali Gems has slipped and the kind of circuit that we are seeing, probably the sequence may continue for some days. From a support perspective, Rs 29-30 is a support," Sacchitanand Uttekar, Assistant Vice-President at Research for Tradebulls, said.
"But with developments in the company going off-track, how much will it hold is something that time will decide," he added.
IANS
18:57 (IST)
Jewellery makers fear may slash lending to industry after Rs 11,000-cr PNB scam banks
Jewellery traders and exporters are apprehending that "ripple effects" of the $1.8 billion fraud involving billionaire diamond trader Nirav Modi's companies could make lenders more cautious and impact credit flow to the industry to some extent, officials said here on Friday.
However, they also said that in the wake of the fraud, the entire gems and jewellery industry should not be blamed or branded as "risky" industry.
"Some ripple effects are bound to happen and it (the fraud) will have some psychological impact on the mind of loan advancers. Whenever a banker is financing someone, he will be more cautious to check out whether there is any possibility of fraud or not. This could impact credit flow to the industry or lead to delay in extending advances," Gem and Jewellery Export Promotion Council (GJEPC) Regional Chairman (Eastern Region) Prakash Chandra Pincha said.
Click here to read more
18:26 (IST)
We will get back to normal within six months: PNB chief
Despite the huge blow of $1.8 billion fraud, India's second largest public sector bank is hopeful of coming out of the problem in the next six months, according to its top official.
"We will get back to normalcy within six months. Bank has the size and capacity to come out of the problem," Sunil Mehta, Managing Director and Chief Executive Officer of Punjab National Bank. told a investors' conference call on Friday.
He said the bank was going through some problems but "we will fix it", adding that the bank "will not spare anyone" involved in the crime.
During the investors' conference call, the bank chief reiterated that the incident was a standalone case. "We are looking at gaps in our existing controls, systems and trying to control them," he added.
IANS
18:23 (IST)
Fraudulent transactions show how vulnerable Indian banks have become: Assocham
18:14 (IST)
Visuals from Nirav Modi's showroom in Mumbai's Kala Ghoda
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'