Nirav Modi case: Fraud amount could be Rs. 1,323cr more
The PNB scam, one of the biggest frauds in India's history, was initially estimated at Rs. 11,400cr, but the bank now says the amount of unauthorized transactions could be Rs. 1,300cr more than that. PNB informed the BSE that "quantum of reported unauthorized transactions can increase by $204.25mn." Meanwhile, ED has obtained permission to question six countries in the case. Here're the latest updates.
How India's biggest scam unfolded
Nirav Modi, diamantaire to global celebrities, and uncle Mehul Choksi, Gitanjali Gems chairman, have been accused of defrauding PNB of Rs. 11,400cr. Firms linked to them allegedly acquired fraudulent letters of undertaking (LoUs) from PNB during 2011-17 and based on them, obtained loans from foreign branches of Indian banks. Modi, his family and Choksi left India weeks before the scam was detected last month.
Modi, Choksi were reportedly planning an escape since November
It is now being reported that Modi and Choksi planned their escape in November'17, when two conniving PNB employees retired and were replaced by new employees. The new staff members reportedly raised questions on the LoUs and letters of credit being issued to their firms. On January 1, Gokulnath Shetty, the prime co-conspirator, retired. Within a week, Modi and everyone else had left India.
Court allows ED to issue LRs to six countries
Yesterday, a special court allowed the ED to issue Letters Rogatory (LRs) to six countries seeking information on Modi's assets and businesses abroad. LRs are a formal request from a court in one country to that in another requesting judicial assistance. ED wanted them for "recovery/seizure of proceeds of crime, documents (and) evidence lying in Hong Kong, USA, UK, UAE, South Africa and Singapore."
Assets worth Rs. 6,000cr seized, 12 people arrested
Till now, investigating agencies have seized assets worth over Rs. 6,000cr belonging to Modi and Choksi, including nine luxury cars and 10,000 imported watches. Twelve people, including employees of PNB and Modi and Choksi's firms, have been arrested.
Another independent director of Gitanjali quits
Meanwhile, Anil Umesh Haldipur, Gitanjali independent director, quit his position citing his wife's health issues. Haldipur said during his tenure, he received legal notices from lawyers over the company's dues. But "as an independent director, I don't have a role to play in the (company's) internal workings," he said. Two top officials, CFO Chandrakant Karkare and Compliance Officer Pankhuri Warange, have already resigned.
