News Analysis India

Tag: PNB Scam Case

  • Nirav Modi’s sister sends Rs 17.25 crore from UK account to Indian govt: ED

    By PTI
    NEW DELHI: The ED on Thursday said fugitive businessman Nirav Modi’s sister has “remitted” over Rs 17 crore from a UK bank account to that of the Indian government after she was allowed pardon from criminal proceedings in lieu of extending help in the PNB loan fraud case.

    “On June 24, Purvi Modi intimated Enforcement Directorate that she had received the knowledge of one bank account in London, United Kingdom in her name, which was opened at the behest of her brother Nirav Modi and that the funds did not belong to her.”

    “As Purvi Modi was allowed tender of pardon on conditions of making full and true disclosure, she remitted an amount of USD 2316889.03 from her UK bank account to the bank account of the government of India, Directorate of Enforcement,” the central probe agency said in a statement.

    ALSO READ: Nirav Modi renews UK extradition appeal, to be heard on July 21

    With the cooperation of Purvi Modi, it said, the ED has been able to recover about Rs 17.25 crore (USD 2316889.03) from the proceeds of crime, it said.

    Nirav Modi is presently lodged in a UK jail and has lost his extradition plea to India in connection with the alleged USD 2 billion loan fraud at the Brady House branch of Punjab National Bank (PNB) in Mumbai.

  • PNB scam case: Court issues show cause notice to Nirav Modi

    By PTI
    MUMBAI: A special court here has issued a public notice to fugitive diamond merchant Nirav Modi, wanted in India for alleged fraud and money laundering in the PNB scam case, asking why his properties should not be confiscated under the Fugitive Economic Offenders (FEO) Act.

    Special Judge V C Barde has also asked Modi to appear before the court on June 11.

    The court said if the accused failed to appear, it will proceed with action against him under the FEO Act.

    The special court had in December 2019 declared Nirav Modi a fugitive economic offender, on a plea of the Enforcement Directorate (ED), which is conducting a probe into the case.

    ALSO READ | Nirav Modi’s appeal against extradition awaits UK High Court judge decision

    “I, V C Barde, Special Judge, PMLA, 2002 and Fugitive Economic Offenders Act, 2018, issue NOTICE to you to show cause as to why the properties mentioned in the application (ED’s plea), in which you have pecuniary interest and/or otherwise, should not be confiscated under the said Act,” the recent notice said.

    A similar notice was also issued to Nirav Modi’s wife Ami, sister Purvi and brother-in-law Maiank Mehta.

    The notice said the family members have been enumerated as “interested person” in the application.

    The investigating agency has alleged that Nirav Modi and his uncle Mehul Choksi, in connivance with certain bank officials, allegedly cheated the Punjab National Bank (PNB) to the tune of Rs 14,000 crore through issuance of fraudulent Letters of Undertaking (LoUs).

    The LoUs were allegedly issued in a fraudulent manner by a Mumbai branch of the PNB to a group of companies belonging to Nirav Modi since March 2011, till the case came to light.

    Under the FEO Act, a person can be declared a fugitive economic offender if a warrant has been issued against him for an offence involving an amount of Rs 100 crore or more and he has left the country and refuses to return.

  • Fugitive businessman Nirav Modi’s extradition to India cleared by UK Home Ministry

    By Agencies
    United Kingdom’s Home Secretary Priti Patel on Friday approved the extradition of fugitive diamond merchant Nirav Modi wanted in India in cases of fraud and money laundering. 

    On February 25, a Westminster Magistrates’ Court had allowed Modi’s extradition.

    The UK court in its verdict had said that Nirav Modi not only has a case to answer in the Indian courts but that there is no evidence to suggest he would not receive a fair trial in India.

    For those whose memories need jogging, our columnist Shankkar Aiyar captured what the  one-time jeweller to stars is guilty of succinctly: “He got the Punjab National Bank to back him with letters of undertaking without any underlying asset or money to enter into a series of transactions, possibly incestuous, with related parties, and used the proceeds to build a giant bubble” – one pegged at over Rs 14000 crore.

    The 49-year-old jeweller was repeatedly denied bail due to the seriousness of the allegations against him and remained behind bars in a London prison since his arrest in March 2019.

    Shankkar Aiyar’s observations again: “What did Nirav Modi engineer? He systematically created a business model that was aligned between institutional incapacity, individual avarice, regulatory regression and patronage politics. Could all of this have been possible without influence and patronage? Shorn of technical details—the recording of LOUs, the linking of SWIFT to core banking, the reconciliation of commitments—Modi managed to corner public monies to fund private ambitions. And mind you this (Punjab National Bank – PNB) is the second-largest public sector bank we are talking about.”

  • Court denies bail to retired bank official in PNB scam case

    By PTI
    MUMBAI: A special court here on Saturday denied bail to retired bank official Gokulnath Shetty, a key conspirator and prime accused in the Punjab National Bank (PNB) scam case.

    Shetty was arrested in March 2018 for allegedly playing a key role in the Rs 13,700-crore loan fraud while working as a deputy manager at PNB’s Brady House branch in Mumbai.

    Special judge for cases under the Prevention of Money Laundering Act (PMLA) V C Barde rejected Shetty’s bail plea.

    The scam came to light when jewellery firms of prime accused Nirav Modi and Mehul Choksi approached the Brady Road branch of the PNB in January 2018, seeking Letters of Understanding (LoU) for payment to suppliers.

    The bank realised that LoUs were being issued to these firms fraudulently for seven years by bypassing its core banking system, and Shetty was allegedly instrumental in this.

    An LoU is a guarantee given by the issuing bank to overseas branches of Indian banks to grant short-term credit to an applicant, and in case of loan default, the bank issuing the LoU has to honour the liability.

    Efforts are on to bring back Modi and Choksi to India from abroad to face trial in the case, which is being probed by the Enforcement directorate and CBI.