Nirav Modi fails to keep ED date; fresh summons issued; ICAI issues show-cause notices to PNB, Gitanjali Gems auditors |
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The fresh summons has been issued against Nirav Modi after he failed to depose before the Enforcement Directorate in the 11,400-crore rupees alleged fraud at the Punjab National Bank. According to ED sources, Nirav Modi has sent an email to ED citing suspension of his passport and pending business issues as reasons for his non-appearance.
Nirav Modi was summoned by the ED under the Prevention of Money Laundering Act. According to sources, Nirav Modi has now been asked to join the investigation and appear before the central probe agency in Mumbai on 26th February.
In another development, Income Tax Dept has attached SEZ property of Gitanjali Group in Hyderabad. Meanwhile, Disciplinary Directorate of Institute of Chartered Accountants of India (ICAI) has suo motu started its investigation as per the Chartered Accountants Act, 1949 and rules framed under Chartered accountants' apex body.
ICAI has issued show-cause notices to the auditors of Punjab National Bank and Gitanjali Gems in connection with the case. ICAI has said that it has summoned a deputy general manager of PNB seeking details about the fraud at the public sector lender.
The Institute has also written to the RBI requesting it to provide the list of the corporate borrowers of public sector banks having the outstanding loan amount of 2,000 crore rupees and above.The list would be examined by the Financial Reporting Review Board of ICAI for any possible violation of applicable standards of accounting as well as auditing.
The ICAI has also written to the Ministry of Corporate Affairs requesting it to ask SEBI, CBI, ED and PNB to share their findings to enable it to accelerate the action against any chartered accountant who has any role in this fraud.
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