PNB-Nirav Modi fraud: CBI, ED, Income Tax launch investigation, this is what happened so far
India | Feb 18, 2018, 11:25 PM ISTThe investigative agencies have launched a probe into at least 200 shell firms and “benami" assets.
The investigative agencies have launched a probe into at least 200 shell firms and “benami" assets.
Claiming that the over Rs 11,000 crore PNB scam involving billionaire jewellery designer Nirav Modi was only a fraction of a mamoth fraud on the Indian banks, Banerjee asserted that it took place during demonetisation.
Referring to 'Pariksha Pe Charcha' event, recently addressed by the prime minister, Gandhi said, "PM Modi tells kids how to pass exams for 2 hours, but won't speak for 2 minutes on the 22,000 Cr banking scam"
The department issued orders for provisional attachment of these accounts in various bank branches in Mumbai under the provisions of the Income Tax Act, 1961. There are around Rs 80 lakh in these accounts, official sources said.
PNB has detected a USD 1.77 billion scam where Nirav Modi allegedly acquired fraudulent LoUs from the Brady House branch of the bank in south Mumbai to secure overseas credit from other lenders.
The scam has "consequences for the economy of the nation", said special CBI judge S R Tamboli, remanding them in the central agency's custody till March 3.
ED had earlier said it had arrived at the value of the assets seized based on the stock value at showrooms and stores, which was also the price at which the company purchased the goods.
Singhvi said he reserved the right to take appropriate legal action against Sitharaman and a section of the media "which carry such false and maliciously defamatory allegations".
Rahul Gandhi said that the scam began with the decision to scrap Rs 500 and Rs 1,000 currency notes from the economy on November 8, 2016.
Referring to the Punjab National Bank (PNB) fraud which came to light this week, the Sena said it is "clear that Nirav Modi and his family had fled" the country early last month.
The BJP fielded Defence Minister Nirmala Sitharaman to counter the Congress charge that the scam took place in 2017 under the Modi government when the letters of understanding were signed by the Punjab National Bank in favour of Nirav Modi.
As per the Central Bureau of Investigation, 143 LoUs were fraudulently issued to three Mumbai-based private companies of Nirav Modi's associate Choksi -- Gitanjali Gems, Nakshatra and Gili -- during the period 2017-18.
In further trouble for beleaguered jewellery designer Nirav Modi, the Income Tax Department today provisionally attached 29 properties and 105 bank accounts of the diamond merchant, his family and firms as part of its tax evasion probe.
The CBI has alleged in the FIR that accused bank officials Shetty and Kharat in connivance with accused companies and others defrauded PNB to the tune of Rs 4,886.70 crore, the CBI spokesperson said.
The Reserve Bank warned of "appropriate supervisory action", saying it is assessing the control systems at Punjab National Bank (PNB).
The official, identified as Dinesh Dubey – former Allahabad bank director, claimed that he was forced to resign from post due to pressure from the then Finance Secretary for trying to expose the scam.
ED expanded its probe from 17 to 35 locations across various cities, as it asked Modi's designer jewellery chain headquarters in Mumbai to issue a sales embargo for its overseas stores.
The development comes as raids are being conducted in at least 20 locations related to the Gitanjali group of companies, promoted by Nirav Modi's maternal uncle and business partner Mehul Choksi, in six cities and five states.
Rajnish Kumar also pointed out that the SBI has "a small exposure to Gitanjali Gems", owned by the uncle of Nirav Modi, Mehul Choksi, "but it is not a point of worry".
Banerjee, who was interacting with officials in Jhargram district, said banks should extend cooperation to poor farmers, SHG members and small entrepreneurs to make them self-reliant and boost development.
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