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Feb 23, 2018 08:19 AM IST | Source: Moneycontrol.com
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highlights
ED has refused to accept Nirav Modi's reply and has issued fresh summons to Nirav Modi, Mehul Choksi and Ami Modi, reports CNN-News18. They were supposed to appear on February 22. However, since no one showed up, ED has told them to appear by Feb 26.
10,000 bank customers hit by debit and credit card data breach, says report
Recap of the case
ED has refused to accept Nirav Modi's reply and has issued fresh summons to Nirav Modi, Mehul Choksi and Ami Modi, reports CNN-News18. They were supposed to appear on February 22. However, since no one showed up, ED has told them to appear by Feb 26.
10,000 bank customers hit by debit and credit card data breach, says report
Some 10,000 credit or debit card holders have been affected by a data breach reported by Punjab National Bank (PNB), which is already reeling under a multi-crore rupee financial fraud by two fugitive luxury jewellers, according to an Asia Times report.
The report stated that security experts believe sensitive information has been available for purchase through a website for at least three months. This comes in the time when the second largest lender is amid a major fraudulent activity.
Punjab National Bank (PNB) is witnessing probably one of the biggest scams in banking history, opening a can of worms worth over Rs 11,300 crore (USD 1,771.69 million) for the banking sector. The fraudulent transactions likely to have been going on for last seven years were unearthed by PNB at one of its Mumbai branches.
According to the report, the bank was unware of the data breach until a Singapore-registered information security company, CloudSek Information Security, tipped off on Wednesday night.
ICAI issues show-cause notices to PNB, Gitanjali Gems auditors
The Institute of Chartered Accountants of India (ICAI) has issued Show Cause Notices to the auditors of Punjab National Bank (PNB) and Gitanjali Gems in connection with the Rs. 11300 crore scam.
The statutory body has also summoned the deputy general manager of PNB and sough related documents in the said fraud.
"The Deputy General Manager, PNB has been summoned in terms of powers as vested in Section 21C of the Chartered Accountants Act 1949 to appear and produce a copy of FIR, all related documents in the said fraud, give details of the modus operandi used in the fraud," the ICAI said in a statement.
The ICAI has also written letters to Security and Exchange Board of India (SEBI), Central Bureau of Investigation (CBI), Enforcement Directorate (ED) and Punjab National Bank (PNB), urging them to share details of Rs. 11300 crore PNB scam.
Nirav Modi fraud case could trigger PCA on PNB: Kotak report
The Rs 11,400 crore fraud detected at Punjab National Bank (PNB) could trigger prompt corrective action (PCA) by Reserve Bank, leading to stoppage in lending by it for sometime, says a report.
The state-run lender had detected fraudulent transactions worth USD 1.77 billion (Rs 11,400 crore) at one of its branches in Mumbai.
The transactions were carried out by diamond jeweller Nirav Modi by acquiring fraudulent letters of undertaking (LoU) from the lender's Brady House branch in Mumbai to secure overseas credit from other Indian lenders.
The lender had said it would honour all 'bonafide' contracts suggesting that some of the claims may be disallowed while the other public banks are suggesting that this may not be the case.
How responsible are India’s lenders? A new report has a few pointers
The Financial Planning Standards Board India (FPSB) and Indian Institute of Management (IIM), Lucknow have released the “Navigator of Responsible Lending- India” – a first of its kind report on the state of Indian consumer lending sector with respect to responsible lending practices.
Focusing on small ticket (up to Rs 15,000) personal and consumer durable loans across both banks and NBFCs, the first-of-its-kind research aims to introduce the Indian consumers especially first time borrowers to the concept of responsible lending practices, a press statement said.
Conducted from July 2017- December 2017, it evaluates the performance of industry along five selected parameters of loan application process, lender’s public information, fees & charges, loan servicing and financial inclusion on the basis of information that a consumer would be able to access in public domain, through his loan journey.
Read full story here
Recap of the case
What happened?
Over Rs 11,400 crore was siphoned by Punjab National Bank (PNB) issuing LoUs to top 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. The fraud started in 2010, and was detected on 25 January 2018, according to PNB's MD and CEO Sunil Mehta.
What is the latest?
- Mehul Choksi did not respond of summon issued by the Enforcement Directorate on February 15, reports Moneycontrol’s Tarun Sharma.
- Moneycontrol’s Tarun Sharma has reported that Niten Shahi and Kapil Khandelwal have been sent to police custody till March 5, according to CBI. Eleven were arrested earlier, some are PNB officials and some are directly linked to Nirav Modi's firm.
- Nirav Modi has refused to appear before the Enforcement Directorate after summons were issued to him on February 15, Moneycontrol's Tarun Sharma has reported.
- ED seizes Rs 100 crore deposits, luxury cars of Nirav Modi, Mehul Choksi
- There are certain legal processes which need to be completed in time. Following advises by the agencies we did suspend the passports of Nirav Modi & Mehul Choksi. They are supposed to reply within a stipulated time, if they don't we will take further action: Raveesh Kumar, MEA (ANI tweeted)
- PNB asks Nirav Modi to come up with concrete and implementable plan to repay dues.
-Nirav Modi wrote to PNB where he said they should not have gone public with the case and that it could have been solved between the two parties.He also wrote to his employees saying that he will not be able to recover their dues.
- Supreme Court has deferred the hearing to March 16 because the Centre opposed the petition. The PIL was filed by Vineet Dhanda which seeks for deportation of Nirav Modi for three years and an investigation of the case.
- The Reserve Bank of India (RBI) will set up an expert committee to address the rising incidences of frauds and divergences in the classification of bad loans.
- On the case, Finance Minister Arun Jaitley blames the banks, the auditors and other authorities.
Hello and good morning! This blog will you the latest updates on the Rs 11,400 crore PNB fraud case. Stay tuned.