PNB fraud: Congress's Abhishek Singhvi denies links with Nirav Modi, Mehul Choksi

Frederick Owens
February 19, 2018

The PNB fraud pertains to issuance of fake Letters of Understanding (LoUs) to companies associated with billionaire jeweller Nirav Modi by errant PNB employees, which enabled these companies to raise buyers credit from worldwide branches of other Indian lenders. "A decision with regard to his return will be taken in due course".

It said Choksi's Gitanjali Gems and subsidiaries dealt with 32 lenders.

In the case of the FLCs, the conniving officer at the Brady House branch entered a small amount in the trade finance module of the core banking system only to generate a reference number and a SWIFT message was sent for this amount.

During the raids raids assets worth around 5700 crore rupees have been seized so far.

On Saturday, the CBI had arrested Punjab National Bank's former deputy manager Gokulnath Shetty and Manoj Kharat, SWO (single window operator) over Nirav Modi's fraudulent transactions of over Rs 11,400 crore.

Three people have been arrested on suspicion of helping a billionaire jeweler to defraud one of India's largest banks of millions.

The Congress president made reference to Indian Premier League (IPL) founder Lalit Modi and Nirav Modi, both of whom flew out of India as alleged scams involving them came to light.

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Nirav Modi has reportedly assured the PNB authorities repayment of the entire amount he is alleged to have embezzled, but has been asked to provide a concrete plan. The PNB fraud pertains to issuance of fake Letters of Understanding (LoUs) to companies associated with billionaire jeweler Nirav Modi by errant PNB employees which enabled these companies to raise buyers credit from global branches of other Indian lenders. That amount is nearly a third of the bank's market value, and many times its quarterly profits.

Opposition leaders kept up their attack on the government over the issue.

Rahul tweeted, "PM Modi tells kids how to pass exams for 2 hrs, but won't speak for 2 mins on the 22,000Cr banking scam".

"Mr. (Arun) Jaitley (Finance Minister) is in hiding".

Rahul Gandhi was referring to Prime Minister Modi's "Pariksha Pe Churcha" program on Friday held even as people were in shock because of one of the largest banking scams to hit the country in its recent history, and were anxious about the safety of their deposits in banks. "Speak up", the Congress leader tweeted. The fact of the matter is that the prime minister has, through his actions, destroyed the financial system of this nation.

West Bengal chief minister Mamata Banerjee linked the fraud to the government's demonetisation exercise.

Other reports by LeisureTravelAid

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