Everyone wants Nirav Modi: These are the 7 agencies investigating PNB fraud case

A look at the multiples agencies probing the fraud perpetrated on Punjab National Bank.

india Updated: Feb 19, 2018 14:41 IST

HT Correspondent
Hindustan Times, New Delhi

Enforcement Directorate team raids the Viviana Mall after a complaint filed by Punjab National Bank over Nirav Modi's fraud case, in Thane on February 16, 2018.(PTI File Photo)

Punjab National Bank, India’s second-biggest public sector bank, stunned the country’s financial sector when it announced last week it had discovered fraudulent transa ctions worth Rs 11,400 crore at a single branch in Mumbai.

The case is centred around diamond billionaire Nirav Modi who allegedly acquired fraudulent letters of undertaking from a branch in Mumbai to secure overseas credit from other Indian lenders.

A multi-agency probe is underway and investigators have been conducting searches at PNB branches and at Nirav Modi’s home and offices.

Here are the agencies involved in investigating the case:

EVERYONE WANTS MODI

Billionaire jewellery designer Nirav Modi, his family members and associates are now the focus of a multi-agency probe spread across several continents for a fraud perpetrated on Punjab National Bank that could potentially affect as many as 30 other banks. Here’s a quick primer on who’s doing what.

The CBI has registered two First Information Reports. The first, registered on January 31, deals with the fraudulent issuance of 150 letters of undertaking (LoUs) worth Rs 6,498 crore to the firms of Modi and the second deals with unauthorised LoUs worth Rs 3,032 crore and unauthorised foreign letters of credit (FLCs) worth Rs 1,854 crore to three firms of Modi’s maternal uncle Mehul Choksi. The CBI is focusing on charges of criminal conspiracy and corruption in the issuance of LoUs and FLCs. The CBI has also arrested three people, two from Punjab National Bank and one from Modi’s company.

The ED has registered two Enforcement Case Information Reports (ECIRs) on the basis of the two CBI FIRs to look into the money laundering aspect. The agency has so far seized diamonds, gold and precious stones worth Rs 5,649 crore (book value) in searches on properties owned by Modi and Choksi and their companies. The ED has also summoned Modi and Choksi for questioning on February 23.

IT authorities have moved against Nirav Modi under the Income Tax Act and the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Income Tax Act, 2015 and provisionally attached 29 immoveable properties of Modi, his wife Amy and other group companies. The department has attached 105 bank accounts of Modi and associates. A prosecution has also been filed against Nirav Modi under the IT Act and hearing is slated to take place on February 27.

The CVC, the apex vigilance body of the country, on Monday morning summoned the senior officials of PNB on alleged vigilance lapses which led to the Rs 11,400 crore loss. PNB managing director and CEO Sunil Mehta was to appear before the commission along with the bank’s chief to explain how the fraud remained undetected for so many years.

The MCA has identified 150 shell companies used to route money in the case for further investigation.

The MEA has suspended passports of Nirav Modi and Mehul Choksi for four weeks in order to put a curb on their travel. The ministry has also issued notices to them regarding the cancellation of their passports. In case no reply is received within four weeks, the passports will get cancelled automatically.

The international police body has been approached by the CBI to track and locate Nirav Modi and other accused.

(with agency inputs)