Mumbai: One of the absconders in the Punjab National Bank (PNB) fraud Mehul Choksi was under the scanner of the Mumbai Income Tax Department (Investigation) in 2012 for alleged duty violations while importing huge quantities of gold and diamond items.According to replies received under an RTI in 2012 from the Mumbai Customs Department by activist Manoranjan S Roy huge quantities of gold were imported by major Indian companies and many had not paid duty tariffs that year.Among the companies named by Mumbai Customs Department were Mehul Choksi s group businesses -- Gitanjali Gems Ltd which imported 750 kg of gold items Gitanjali Jewellery Ltd which imported 171 kg and Gili India Ltd which imported 182 kg and 134 pieces (implying gold articles) -- all allegedly without paying a single rupee as duty.The total gold and diamonds imported by Mr Choksi s companies came to 1 103 kg that year. It was allegedly cleared by the Customs department without paying any duty. After the Mumbai Customs shocking revelations I checked further to learn that Gitanjali Jewellery Ltd. was not even registered with the Registrar of Companies. There are no records available of this company s existence yet it succeeded in importing 171 kg of gold undetected Mr Roy said.Armed with this expose Mr Roy complained to then Director General of Income Tax (Investigation) on August 16 2012 seeking a detailed probe.He pursued it vigorously. Finally in 2017 he approached then Directorate General of IT (Investigation) BD Bishnoi in Mumbai. Bishnoi was cooperative but directed me to follow up with the concerned Principal Director ITI PS Paniay. When I met him Paniay brushed me off saying I must contact the local headquarters or Finance Ministry. Since then I made several trips but the entire issue has been stuck without progress Mr Roy told news agency IANS.Mehul Choksi is an uncle of diamond and jewellery trader Nirav Modi who has reportedly fled from India with his wife after being linked to a huge financial scam involving the Punjab National Bank.There were more stunning revelations in the Mumbai Customs RTI replies. Their records show nearly three dozen top Indian diamond and gold jewellery companies who have imported more than 75 tonnes - exact figures are 75 724.54 kg of gold and diamond items in 2012. No duty was paid by any of these companies on this massive quantity Mr Roy said.Morever these companies used and sold this duty free gold in the markets but it is unclear whether this was declared to the IT Department failing which the losses to the exchequer could be manifold the activist said said.Further research made with the Registrar of Companies and the Maharashtra Sales Tax Department revealed that many of the companies which had imported gold and diamonds were not registered with either body. CommentsClose X When I raised the matter with the Mumbai Customs Department they washed off their hands claiming it was not within their jurisdiction to ensure whether any gold-diamond importer was registered with RoC or MSTD. They contended that their jurisdiction pertained to collection of customs duty Mr Roy said.On Manoranjan Roy s prodding why they failed to charge or collect duties on such a huge quantity no official had any response .
KOCHI: Country s largest lender SBI today said it has an exposure of 212 million (about Rs 1 360 crore) in respect to letter of undertaking issued by Punjab National Bank to Nirav Modi but does not have any direct exposure to the absconding jewellery designer. We don t have any direct exposure on Nirav Modi but we do have some exposure on Punjab National Bank รข State Bank of India Chairman Rajnish Kumar told reporters here today. He said the bank has lent USD 212 million to Modi on the basis of LoU issued by PNB. Kumar however said the bank has some exposure to Gitanjali Gems owned by Mehul Choksi uncle of Nirav Modi. Our exposure to Gitanjali is small we and we are not worried Kumar said. When asked about the lender s exposure to the entire gems and jewellery sector he said it is less than 1 per cent of the total domestic loan book. My domestic loan book is Rs 16 lakh crore and gems and jewellery sector exposure is less than Rs 13 000 crore which is less than 1 per cent he said. He said the bank is very careful as far as gems and jewellery industry is concerned and has been taking steps to put lot of risk mitigation measures for accounts from the sector. He said SBI has an elaborate system of risk management and internal audits and the robustness of that system is very well recognised. One of the risk management practise which we follow is job rotation. We don t keep a person for more than three years at one position. There are certain positions which are very sensitive and we monitor those positions very closely Kumar said. He said the Swift system and the core banking system in SBI are integrated. He said banking is a risky business and risks are of various natures such as credit risks operational risks market risks and foreign currency risks. Operational risk is always an unknown risk. Credit risk a calculated risk ... you know during the appraisal about the probability of default he said. Banks need to manage the risks by creating awareness about the risks having standard operating procedures strict compliance of these procedures and having a strong oversight. Ultimately we are human beings who do the transactions and banks run on the trust. But if there is a breach of trust by any individual you have to have a process for detections he said. Review of the risk assessment processes and plugging the gaps should be a continuous process banks need to do. Talking about Axis Bank selling exposure he said They might have sold to other banks but whether we have bought or any other bank has bought ultimately the exposure is on the bank which has issued the letter of undertaking.
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PNB Fraud Case LIVE Updates: Nirav Modi is the main accused in the Rs 11 300 crore PNB scamNew Delhi / New York: The passports of Nirav Modi and Mehul Choksi have been suspended for four weeks today as CBI and Enforcement Directorate are carrying out investigations and sought its revocation. Billionaire jewellery designer Nirav Modi and his partner Mehul Choksi are the main accused in the Rs 11 300 crore Punjab National Bank fraud termed India s biggest banking scandal. Earlier today NDTV traced Nirav Modi to an upscale apartment in Midtown Manhattan.Sources have confirmed to NDTV that Nirav Modi the main accused in alleged fraudulent transactions of over Rs 11 300 crore through 150 letters of understanding issued by Punjab National Bank has been discreetly living at New York s JW Marriott Essex House at 160 Central Park South which includes both a hotel and apartments. The section where Nirav Modi has been living is situated in a premier location overlooking New York s well known Central Park.Nirav Modi who holds an Indian passport left India on January 1 while his brother Nishal a Belgian citizen left the country on the same day. However whether they travelled together has to be investigated. Nirav Modi s wife Ami a US citizen also left on January 6 and his uncle and business partner Mehul Choksi the promoter of Gitanjali jewellery chain left on January 4 the officials said.Apart from the CBI the Enforcement Directorate also moved a separate application with the External Affairs Ministry seeking urgent and immediate revocation of passports of Nirav Modi and Mehul Choksi. Here are the latest and LIVE updates about billionaire jewellery designer Nirav Modi and the Punjab National Bank Fraud: Feb 16 201817:28 (IST)Replying to a question by a reporter during a press conference today about the PNB Fraud MEA Spokesperson Raveesh Kumar said I thing you are asking the wrong person. We come into the picture only when we are advised by the agencies. We do not know where Nirav Modi is. We aren t in touch with him. Feb 16 201817:24 (IST) CBI is carrying out searches in 26 places across India after naming three companies in fresh police complaint registered in PNB fraud case news agency PTI reported. Feb 16 201817:23 (IST) We must understand that a banking fraud has nothing to do with the government. Coal Scam 2G Scam Jijaji Scam were all government scams. Jijaji ghotala you know very well..that s a scam Mr Javadekar said as he referred to Robert Vadra. The banking system was destroyed by the UPA and this issue is something we have inherited from them he added. Feb 16 201817:16 (IST)BJP Government Brought Scam To Light: Prakash JavadekarThe issue came to light when we decided to make the banking system more transparent. So it was the BJP government that brought the scam to light. It originated during the UPA government. All these scams took place during this time. We want to ask why didn t the Punjab National Bank fraud case come to light earlier but in 2017... because there was no proper system. Feb 16 201817:15 (IST) It is a bank related matter not a government related one. If the bank issued unreasonable loans how is the government responsible for this Mr Javadekar said while addressing the reporters. Feb 16 201817:14 (IST)The banking system was destroyed by the UPA and this issue is something we have inherited from them: HRD Minister Prakash Javadekar Feb 16 201817:02 (IST)Rahul Gandhi had attended a show held by Nirav Modi on September 13 and on September 14 the Allahabad bank was alerted about this case. After this Mr Dubey complains to the finance secretary who instead of investigating asked Mr Dubey to resign. We want had put pressure against investigating the matter? This happened during the UPA rule in 2011: Prakash JavadekarFeb 16 201814:19 (IST)Breaking News: Passports of Nirav Modi Mehul Choksi suspended for 4 weeks by government amid bank scam investigation. They both left India in JanuaryFeb 16 201812:39 (IST)Enforcement Directorate Raids Nirav Modi s Mumbai Botique And OfficeThis morning officials from ED raided Nirav Modi s showroom and office in Mumbai s Kala Ghoda area. Yesterday in searches at 17 Nirav Modi properties in multiple cities the Enforcement Directorate claimed found diamonds jewellery and gold worth Rs. 5 000 crore. More assets will be seized more premises will be raided. Till now we have found assets only half the fraud money. Our priority right now to recover assets worth at least equivalent to fraud amount an official told NDTV this morning.Watch the video below:Feb 16 201811:06 (IST)10 Latest Developments About Nirav Modi And The Rs 11 300 Crore Punjab National Bank FraudAmid investigations against celebrity jeweller Nirav Modi in connection with a massive bank scam the CBI has contacted Interpol. Nirav Modi who left India days before the CBI started investigating him in connection with the bank scam is in New York staying at the JW Marriott Essex House a luxury hotel not far from his Manhattan showroom NDTV has learnt. Raids on Nirav Modi will continue until investigators can seize enough wealth to cover the amount involved in the Punjab National Bank (PNB) swindle - Rs 11 300 crore - sources have told NDTV. This morning teams of officials returned to the celebrity jeweller s showroom and office in Mumbai.Here are the 10 latest updates about billionaire jewellery designer Nirav Modi and India s biggest banking fraud - the PNB scandal:1) Yesterday in searches at 17 Nirav Modi properties in multiple cities the Enforcement Directorate found diamonds jewellery and gold worth Rs. 5 100 crore.2) More assets will be seized more premises will be raided. Till now we have found assets only half the fraud money. Our priority right now to recover assets worth at least equivalent to fraud amount an official told NDTV this morning.3) The government has said that Nirav Modi s passport will be cancelled. The billionaire left India on January 1 long before the bank scam exploded.4) The raids on Nirav Modi 48 followed PNB s complaint that it had been cheated of around Rs 11 300 crore of taxpayer s money by Nirav Modi his family members and business partner Mehul Choksi who are accused of using fake guarantees to get credit from banks overseas.5) The CBI filed a formal case charging four Nirav Modi his wife Ami brother Nishal and Mehul Choksi on January 31 after PNB complained of fraud worth Rs 280 crore.6) Earlier this week India s second biggest government bank told the CBI that the amount was closer to a staggering Rs 11 300 crore.7) Nirav Modi and the others left India in the first week of January long before the CBI filed the case. In the first week of February deeper into the investigations the investigating agency put out a lookout notice against the four.8) Nirav Modi s exit has fueled political sparring with opposition parties like the Congress drawing comparisons with Vijay Mallya s flight out of the country in the middle of attempts to recover billions in unpaid loans from him.9) The jeweller for stars in India and abroad was recently seen in a group photo in Davos with Prime Minister Narendra Modi. The Congress accused PM Modi of helping Chhota Modi escape the country though he had been aware of a scam since 2016 when a whistleblower wrote to him on Nirav Modi s uncle Mehul Choksi and warned that he would leave the country. The government called the charge shameful and declared that no one will be spared no matter how big . Nirav Modi s passport will be revoked said Union Minister Ravi Shankar Prasad.10) Last month the diamond billionaire was raided over charges that he and his associates had swindled Rs.280 crore from PNB. In a new complaint this week PNB pegged the scam at much more - around 1.8 billion or Rs. 11 300 crore. PNB told the stock exchange that its own officials at a single branch in Mumbai had helped Nirav Modi and others get credit without proper guarantees and in violation of rules. Taxpayers money had been illegally transferred abroad the bank said.Feb 16 201810:51 (IST)PNB Fraud: 10 Facts About Nirav Modi At The Centre Of India s Biggest Banking FraudNirav Modi the name on glossy billboards promising exclusive diamond jewellery is now at the centre of a colossal banking scandal involving fraud worth Rs 11 300 crore. Punjab National Bank has said that its own officials violated rules and put out illegal guarantee documents to help the celebrity jeweler secure credit from banks abroad.Feb 16 201810:48 (IST)Actor Priyanka Chopra Seeks Legal Opinion On Exiting Deal With Nirav ModiActor and former Miss World Priyanka Chopra roped in last year as the brand ambassador for Nirav Modi s designer jewellery hasn t sued the billionaire but is getting legal opinion on how to cancel her deal the actor s spokesperson said after the 48-year-old emerged as the target of a massive investigation into the Rs 11 300 crore scandal termed India s biggest banking fraud. There are speculative reports that Priyanka Chopra has sued Nirav Modi. This is not true. However she is currently seeking legal opinion with respect to terminating her contract with the brand in light of allegations of financial fraud against Nirav Modi her spokesperson said in a brief statement.Ms Chopra who scored Hollywood success with her hit series Quantico has been associated with the luxury diamond jewellery brand as its brand ambassador since January 2017. Priyanka embodies all the symbols of modern India while paving her own path which also represents the ethos of our brand the firm that has boutiques across three continents to sell its jewellery for prices varying between 5 lakhs to 50 crores had announced. The banking scandal however has led Ms Chopra to consider snapping ties with the brand.(Photo: Priyanka Chopra was roped in last year as the ambassador for Nirav Modi s jewellery designer brand)Feb 16 201810:35 (IST)Nirav Modi And The 2 Billion Fraud: What We Know So FarOn Valentine s Day one of India s biggest banks disclosed an almost 2 billion fraud allegedly by one of the country s richest men who deals in pearls and diamonds. Shares of the lender Punjab National Bank plunged on the news dragging down other lenders when it said the scam may extend to multiple banks. With several questions still unanswered here s what we know about the case so far.Feb 16 201810:27 (IST)Nirav Modi LIVE Updates: NDTV Investigates The Whereabouts Of Nirav Modi Main Accused In India s Biggest Banking FraudNDTV s in person questions to his staff at Madison Avenue showroom were not answered but this statement was given This matter has no affiliation legal or otherwise with Firestar International Limited which is the flagship enterprise of Mr. Nirav Modi. NDTV is currently awaiting a promised call from Nirav Modi s US management. In the mean while NDTV has also reached out to the FBI US Department of Justice and is awaiting a response. Watch the video here:Feb 16 201810:17 (IST)Nirav Modi LIVE Updates: What Happened At Nirav Modi s New York Apartment When News Of The PNB Scam BrokeNDTV s Namrata Brar managed to reach Nirav Modi s upscale suite on the 36th floor of Manhattan s JW Marriott Essex House overlooking New York s Central Park on Thursday afternoon. Three staff members informed NDTV that Nirav Modi and his wife Ami were out and only their children were home. Another source told NDTV the news is only in India he is safe in America right? . NDTV has also learnt that there was a great deal of activity on Wednesday night when multiple people gathered in his apartment at the same time that the news of the scam broke in India. Hotel staff claim to have seen the 48-year-old Nirav Modi who is unusually reticent at odd hours late into the night. His wife Ami Modi has been seen entering and exiting the building frequently during the day. By the time CBI a sent out the lookout notice in the first week of February a month had passed since Nirav Modi his uncle and business partner Mehul Choksi his brother Nishal Modi and his wife Ami Modi had long left the country in early January. Feb 16 201810:07 (IST) NDTV has learnt that Nirav Modi is staying in a luxe suite at the JW Marriott s Essex House in Manhattan a short walk away from his luxurious Madison Avenue jewelry retail store. The diamond billionaire is the main accused behind India s biggest banking fraud of 1.8 billion or over Rs. 11 300 crore. He left India on January 1 and was last seen in Davos Switzerland.Feb 16 201810:01 (IST)NDTV Exclusive Video: Nirav Modi s Suite At JW Marriott s Essex House In ManhattanFeb 16 201809:55 (IST) Apart from the CBI the Enforcement Directorate also moved a separate application with the External Affairs Ministry seeking urgent and immediate revocation of passports of Nirav Modi and Mehul Choksi.Feb 16 201809:25 (IST) Nirav Modi who holds an Indian passport left India on January 1 while his brother Nishal a Belgian citizen left the country on the same day. However whether they travelled together has to be investigated. Nirav Modi s wife Ami a US citizen also left on January 6 and his uncle and business partner Mehul Choksi the promoter of Gitanjali jewellery chain left on January 4 the officials said.(Photo: Billionaire jewellery designer Nirav Modi is being investigated in connection with the Rs. 11 400 crore Punjab National Bank scam)Feb 16 201808:55 (IST)Nirav Modi s New York Apartment At JW Marriott Essex House ManhattanNDTV has traced Nirav Modi to this upscale apartment in Manhattan s JW Marriott Essex House. Mr Modi s apartment overlooks New York s well known Central Park and is minutes away from his fancy showroom in the city.(Photo: Sources have told NDTV that billionaire jewellery designer Nirav Modi has been living in this upscale New York apartment)Feb 16 201808:46 (IST)Nirav Modi Latest Updates: Billionaire Jewelley Designer Traced To Upscale New York ApartmentSources have confirmed to NDTV that Nirav Modi the main accused in alleged fraudulent transactions of over Rs 11 400 crore through 150 letters of understanding issued by Punjab National Bank has been discreetly living at New York s JW Marriott Essex House at 160 Central Park South which includes both a hotel and apartments. The section where Nirav Modi has been living is situated in a premier location overlooking New York s well known Central Park.(Photo: Nirav Modi has been living discreetly at New York s JW Marriott Essex House. The section where Nirav Modi has been living is situated in a premier location overlooking New York s well known Central Park)Feb 16 201808:36 (IST) A day after the Central Bureau of Investigation or CBI India s premier investigation agency sought the revocation of passports of billionaire jewellery designer Nirav Modi and his partner Mehul Choksi in connection with a Rs 11 400 crore bank fraud NDTV has traced Nirav Modi to an upscale apartment in Midtown Manhattan.No more content CommentsClose X
New Delh: Punjab National Bank (PNB) which is at the centre of India s biggest banking fraud has suspended eight more officials including one at general manager level for their suspected involvement in the multi-crore scam a senior government official said. The official also said that PNB will repay other banks their dues by 31 March and would be funded from internal resources. On Wednesday 10 bank employees had been suspended after the bank reported fraudulent transactions of more than Rs 11 300 crore to stock exchanges. Representational image. AFP The fraud in which diamond jewelery designer Nirav Modi allegedly acquired fraudulent letters of undertaking (LoUs) from one its branches for overseas credit from other Indian lenders is being probed by CBI and Enforcement Directorate among other agencies. Eight more officials of the bank have been suspended including one at the general manager level the official said adding the total number of officers suspended for suspected involvement is 18. He said PNB will settle liabilities towards other banks by March end and no further capital infusion would be needed as these would be funded from internal resources. In banking parlance LoU is a guarantee issued by one bank to branches of other banks based on which overseas branches offer credit to borrowers. The investigations are on as to how much credit has been given on account of the LoUs. The bank will fulfil its liabilities based on the investigation report the official said. In January the government had announced it would infuse Rs 5 473 crore into PNB in current fiscal. The official further said that the bank would now initiate probe in 36-related accounts to recover further dues.
.story-content span .story-content p .story-content div color:#000!important;font-family: open sans Arial!important;font-size:15px!important ALSO READ PNB fraud case: Lenders seek forensic audit of Gitanjali group s books PNB names Nirav Modi and Gitanjali Gems in the mega Rs 114-bn fraud Rs 114-bn fraud: Other lenders flouted RBI rules PNB tells 30 bank heads PNB fraud to impact other banks increase their bad loans provisions Banks risk management under a cloud after Rs 114-bn PNB fraud case span.p-content div id = div-gpt line-height:0;font-size:0 It appears that the Reserve Bank of India (pictured) has advised Punjab National Bank (PNB) to honour all payments under the disputed LOUs. Strictly speaking an LOU has no legal standing and is not governed by the Union Customs Code and the practice of the International Criminal Court. AN IOU is considered a gentleman s agreement but gained the status of a bank guarantee particularly when they are issued within a group in global markets. In India initially LOUs were prevalent within bank branches that is when issued by domestic branches favouring overseas branches usually against earmarked deposits or unused credit limits. At some point this became an interbank instrument perhaps without RBI knowledge in the sphere of trade credit. It is not clear how a junior officer of PNB could have access to SWIFT for authorisation of several LOUs in collusion with another officer and how such nonfund exposure was left out of core banking system. It is also not clear if the financing banks omitted to advise PNB while discounting bills under LOU. The large scale fraud suggests not just failure of systems at PNB and other financing banks but also regulatory failure on the part of RBI. A black mark against Indian financial markets. C Chandrasekhar Mumbai Letters can be mailed faxed or e-mailed to: The Editor Business Standard Nehru House 4 Bahadur Shah Zafar Marg New Delhi 110 002 Fax: (011) 23720201 E-mail: letters@bsmail.in
New Delhi: The Congress-led UPA could have stopped India s biggest bank scam a former officer of the Allahabad bank said on Friday claiming that he had flagged concerns about loans to Gitanjali Gems one of the companies being investigated by the CBI in the Punjab National Bank fraud case.Dinesh Dubey a former Director of the Allahabad Bank said: I had sent a dissent note against Gitanjali Gems to the government and the RBI (Reserve Bank of India) in 2013 but to no avail I was directed that this loan has to be approved I was being pressured so I resigned. In his note Mr Dubey is reported to have argued that Gitanjali Gems should first return Rs 1 500 crore loan given to it earlier before a fresh loan amount could be cleared. Gitanjali Group is owned by celebrity designer Nirav Modi s uncle and business partner Mehul Choksi.The BJP which has been facing sharp attacks from the opposition for celebrity designer Nirav Modi exit from the country way back in January promptly cited Mr Dubey s statement to hit back at Mr Gandhi. On September 13 2013 http://ebusinesspages.com/kfckk.user Rahul Gandhi visited Nirav Modi s jewellery exhibition at a hotel in Delhi and the very next day Allahabad Bank approved the loan to him despite the fact that it was opposed by one of the bank s directors Dinesh Dubey Union Minister Prakash Javadekar said asking the Congress to come clean on Mr Gandhi s links with the billionaire at the centre of the fraud.Mr Javadekar suggested that there was a link between Mr Gandhi s visit to the exhibition and bankers being pressured to clear the loan.He also attempted to distance the ruling BJP government from the banking fraud counted amongst India s biggest arguing that the government s alertness had ensured that it was detected. CommentsClose X It came to light after the NDA government tightened the banking norms he said.The Punjab National Bank had stumbled upon the mega fraud last month when a group of companies linked to Nirav Modi presented sought requested buyers credit to pay overseas suppliers. Since they had no pre-arranged credit limit the branch official asked the companies to put down the full amount as collateral so the bank could issue LOUs or guarantees. The PNB scanned through records and found no trace of any transactions when told that such guarantees had been issued in the past.
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