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PNB-scam: ED seizes luxury cars, freezes shares worth Rs. 94.5cr

PNB-scam: ED seizes luxury cars, freezes shares worth Rs. 94.5cr

Feb 22, 2018
05:19 pm

What's the story

As investigation continues in the Rs. 11,400cr PNB scam, the ED has seized nine high-end luxury cars of Nirav Modi, including a Rolls Royce Ghost, a Porsche Panamera and a Mercedes Benz. It has also frozen mutual funds and shares worth Rs. 94.52cr of Modi and uncle Mehul Choksi's firms. Earlier, it had sealed several of his properties, including a sea-facing property in Mumbai.

MO

How Modi and his friends cheated PNB of Rs. 11,400cr

Modi and his associates allegedly embezzled Rs. 11,400cr from PNB on the basis of fake LoUs with the help of bank employees. Based on those documents, Modi got loans from overseas branches of Indian banks. The scam came to light last January, when Modi's companies sought another loan. But by then, the colluding employees had left their positions. PNB then discovered the fraudulent transactions.

Action

Assets worth over Rs. 6,000cr seized, four FIRs lodged

Earlier, the ED and I-T departments had seized assets worth nearly Rs. 5,700cr. After the latest announcement, the value of assets seized has crossed Rs. 6,000cr. Of the Rs. 94.52cr worth of mutual funds and shares seized, Rs. 86.72cr belongs to Choksi and the rest to Modi. Five PNB employees have been arrested till now. The CBI and ED have lodged two FIRs each.

Twitter Post

ED posts photos of luxury cars seized

PNB

'Followed available lawful avenues': PNB responds to Modi's letter

PNB responded to Modi's letter today. "We have followed lawful avenues available to us to recover dues," it said, adding it has enough resources to meet liabilities arising from the fraud. Modi had accused PNB of destroying his "brand and business" and leaving him unable to repay the loans Moreover, "the liability of the Modi Group is substantially less" than Rs. 11,400cr, he wrote.