More PNB officers may be arrested: Government officials
, ET Bureau|
Feb 17, 2018, 07.30 AM IST
NEW DELHI: More officers of the Punjab National Bank (PNB) are likely to be arrested in connection with the Nirav Modi fraud case, top government officials told ET.
They also said seizure of Nirav Modi’s movable and immovable assets will continue till the amount swindled – roughly Rs 11,300 crore – was recovered. According to reports, Rs 5,100 crore worth of assets have been seized so far.
On the issue of the Davos photo, these officials stressed again that Nirav Modi wasn’t part of any official delegation or the PM’s dinner with CEOs. “During a 10-minute photo op with Indian CEOs, Nirav Modi barged into the frame…his attendance in Davos was through WEF organisers,” one official said.
That the CBI, ED and I-T department were coordinating efforts to identify and seize Modi’s assets and that lookout notices were issued within 48 hours of the first raid was proof, officials said, that the Centre was determined to prevent any loss and bring the guilty to justice.
'Priority for Govt'
These government officials, who did not wish to be identified, said getting at the bottom of the fraud was a priority for the government and that the banking system’s failure to detect the fraud was at the heart of the problem.
The use of SWIFT (Society for Worldwide Interbank Financial Telecommunication) transactions evading detection by PNB’s core banking system demonstrated systemic inadequacies on the part of both the individual bank and banking regulation in general, these officials said.
They also said annual and concurrent audits of the Reserve Bank of India (RBI) should have caught on to some irregularity since the fraud has been going on for years. As should have the department of financial services in the central government.
They also said seizure of Nirav Modi’s movable and immovable assets will continue till the amount swindled – roughly Rs 11,300 crore – was recovered. According to reports, Rs 5,100 crore worth of assets have been seized so far.
On the issue of the Davos photo, these officials stressed again that Nirav Modi wasn’t part of any official delegation or the PM’s dinner with CEOs. “During a 10-minute photo op with Indian CEOs, Nirav Modi barged into the frame…his attendance in Davos was through WEF organisers,” one official said.
That the CBI, ED and I-T department were coordinating efforts to identify and seize Modi’s assets and that lookout notices were issued within 48 hours of the first raid was proof, officials said, that the Centre was determined to prevent any loss and bring the guilty to justice.
'Priority for Govt'
These government officials, who did not wish to be identified, said getting at the bottom of the fraud was a priority for the government and that the banking system’s failure to detect the fraud was at the heart of the problem.
The use of SWIFT (Society for Worldwide Interbank Financial Telecommunication) transactions evading detection by PNB’s core banking system demonstrated systemic inadequacies on the part of both the individual bank and banking regulation in general, these officials said.
They also said annual and concurrent audits of the Reserve Bank of India (RBI) should have caught on to some irregularity since the fraud has been going on for years. As should have the department of financial services in the central government.
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