PwC will also seek to trace Modi's assets that were not disclosed in his company's balance sheets so that they could be seized for recovery of dues.
Punjab National Bank (PNB), which is reeling under a major financial fraud, has appointed auditor PwC to conduct an investigation into the alleged Rs 11,300-crore fraud involving luxury jewellers Nirav Modi, Mehul Choksi and their companies.
A report in The Economic Times stated quoting sources that the auditing company has been asked to gather evidence against Nirav Modi and his associates so that it can be presented in court.
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PNB, in a 15-point “scope of work” document finalised on February 21, had asked PwC to identify how the letter of undertaking (LoU) mechanism was misused by Modi. The bank instructed the audit firm to track the money and check on the end use of the funds raised.
As per the document, the auditor will also seek to trace Modi's assets that were not disclosed in his company's balance sheets so that they could be seized for recovery of dues.
Also Read: PNB transfers 1,415 employees post scam
Delhi-based Dinesh Anand is heading PwC’s fraud investigation unit, the report said.
Both PwC and PNB declined to comment on the development.
According to the report, the auditor will conduct a probe into the accounts of five Modi group entities — Firestar Diamonds, Firestar International, Solar Export, Stellar Diamonds and Diamond R Us.
The auditor has also been asked to look at "concentrating transactions" where large sales were made to the same customer or large purchases from the same supplier. Along with this, examining of stocks, inventory and purchase transactions, particularly with related parties and group concerns, are listed out in the auditor's duties.
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Over Rs 11,400 crore was siphoned off from PNB through issuance of LoUs to top jeweller Nirav Modi. Bank officials and major diamond merchant Nirav Modi and his accomplices were involved in this case. The bank officials issued the letters to the concerned persons who approached them.
Also Read — Nirav Modi fraud case could trigger PCA on PNB: Kotak report
