PNB fraud going on since 2010, CBI tells court: Top 10 developments
Here are top 10 developments 1. Violation of norms for issuance of Letters of Undertaking (LoUs) to benefit billionaire jeweller Nirav Modi and his uncle Mehul Choksi had been going on since 2010, the CBI told a court here today. The agency, which secured a 12-day remand of four accused arrested yesterday, explained the modus operandi involved in the alleged Rs 12,636crore Punjab National Bank (PNB) fraud before the special CBI court here. An LoU would be issued to one of the firms of Modi and Choksi, and after the money was credited to the applicants' account, a new LoU would be obtained to "adjust" the earlier one, the CBI lawyer said.
This had been going on since 2010, the lawyer said, while seeking remand of four accused including Aniyath Shiv Raman Nair, Director of Gitanjali Group of Companies of Choksi. 2. CBI questions PNB general manager in Nirav Modi fraud case The CBI today questioned a general manager of Punjab National Bank, who handles the treasury section, in connection with the alleged Rs 12,636-crore fraud perpetrated by billionaire jeweller Nirav Modi and his uncle Mehul Choksi. "PNB General Manager (Treasury) S K Chand is being questioned by the CBI in the bank fraud case," an agency official said. 3. Disgruntled BJP MP Shatrughan Sinha today attacked the Narendra Modi government over issues such as demonetization, the PNB scam and the escape of its key accused to foreign countries. Sinha was critical of the Centre for its inability to capture Nirav Modi and Mehul Choksi, key accused in the Rs 120 billion PNB fraud case, who have reportedly fled the country. 4. Vipul Ambani, others sent to 14-day judicial custody A special Central Bureau of Investigation (CBI) Court on Monday sent Vipul Ambani, president (Finance) of Nirav Modi's Fire Star Diamond and five others to judicial custody till March 19. Along with Ambani, the five others are Arjun Patil (senior executive, Firestar group), Kapil Khandelwal (CFO, Nakshatra group), Niten Shahi (manager, Gitanjali), Rajesh Jindal and Kavita Mankikar (executive assistant) and authorised signatory of the three accused firms. 5. Opposition wants debate in LS on PNB fraud tomorrow Major opposition parties today demanded a debate on the issue of 'bank fraud' in the Lok Sabha tomorrow and told the government that other matters should be discussed only after that. The proceedings of the Lok Sabha today saw frequent disruptions as opposition parties raised the issue of the PNB fraud. The House was later adjourned for the day. 6. Female employee at Fire Star Diamond moves HC against arrest after sunset Kavita Mankikar, in her petition, claimed that she was arrested on February 20 at 8 pm by officials of the Central Bureau of Investigation (CBI), contrary to the provision of law which says a woman cannot be arrested after sunset. 7. P Chidambaram's 80:20 gold scheme aided Mehul Choksi: Ravi Shankar Prasad"There was a scheme 80:20 introduced in August 2013 and repealed in November 2014.
On 16th May, 2014, the date of the declaration of results, the then finance minister gave 'aashirvaad' to seven private companies under 80:20 Scheme. One of those companies was Gitanjali," alleged Union minister Ravi Shankar Prasad on Monday. "Chidambaram & Rahul Gandhi must answer why was this passed on the day of results to benefit these seven private companies," Prasad said. 8. How loopholes in PSBs' systems were flagged but never fixed until PNB fraud The RBI takes a hands-off approach: Its inspections concentrate on whether the broader systems are sound, not the details of what's happening in a particular banking operation. 9. Trade finance hit as caution prevails, premium soars In what can impact the exim trade, the Rs 126 billion Nirav Modi scam at Punjab National Bank has affected trade finance activities as lenders have become extra cautious, while the premium on Indian paper has shot up by 10-50 bps, say bankers. "The PNB fraud has already affected trade financing. No bank is now prepared to extend letters of understanding (LoUs). The ability of a company to raise money through LoUs from abroad has been affected badly," a senior official from a state-run bank has told PTI. 10. DRI sanctions prosecution of Nirav Modi's firms The Directorate of Revenue Intelligence (DRI) on Sunday sanctioned the prosecution of Nirav Modi and his three firms in connection with the billion dollar fraud. The decision was taken as per the guidelines of the Central Board of Excise and Customs (CBEC) on the prosecution of persons in duty evasion cases.
ARTICLE SOURCE- BUSINESS STANDARD.