PNB Fraud: 13 Arrested So Far, Nirav Modi Untraceable, Other Highlights

New Delhi: Nirav Modi and his uncle Mehul Choksi, owner of Gitanjali Gems, are suspected of colluding with bank officials at Punjab National Bank (PNB) to obtain unauthorised loans over a six-year period starting in 2011. The CBI and the ED have registered two FIRs each to probe the case. Both Choksi and Modi are said to have left the country before criminal cases were lodged against them. They have, however, denied any wrongdoing. The CBI, however, has yet to track down Nirav Modi and his uncle Mehul Choksi. Meanwhile, Nirav Modi's flagship firm Firestar Diamond has filed for bankruptcy in the US.


PNB Fraud: Latest Developments So Far

1 CBI said the internal auditor of PNB has been arrested, taking the number of arrests to 13. The CBI says that the arrested auditor, M K Sharma, was "allegedly responsible for auditing the systems and practices" of Punjab National Bank's (PNB) Brady House branch in Mumbai and for reporting any problems to the zonal audit office. Sharma will appear in a Mumbai court on Thursday, the spokesman added. Sharma could not immediately be reached for comment.

2. The agency earlier on Wednesday said that they have sent an email to Modi asking him to join the investigation by next week. It has already stepped up questioning of various present and past officials of PNB.

3. So far the agency has arrested at least 13 people - seven from the bank and six more from Modi and Choksi's companies. Investigators have also seized a number of properties from the two, including jewellery and luxury vehicles.

4. Finance Ministry on Tuesday set a 15-day deadline for state banks to take action to improve their oversight of operational and technological risks.

5. The Enforcement Directorate (ED) said it has attached 41 properties, valued at over Rs 1,200 crore, in connection with the alleged PNB fraud amounting to Rs 12,600 crore.

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(With inputs from Reuters)