PNB scam: ED conducts raids on Nirav Modi's house, office

Nirav Modi- PNB

PNB scam: ED conducts raids on Nirav Modi's house, office

Prasad also questioned Congress' right to comment on the incident, claiming that their government allowed liquor baron Vijay Mallya to run away with around Rs 9,000 crore which he had taken as loan from 17 Indian banks.

Though the scam, mainly involving the PNB, is about Rs 11,000 crore, the Congress said it would be around Rs 30,000 crore if banking experts are to be believed, as more banks were exposed to companies owned by Chokshi and Nirav Modi.

"The public servants committed abuse of official position to cause pecuniary advantage to Diamond R US, Solar Exports, Stellar Diamonds and a wrongful loss of Rs 280.70 crore to Punjab National Bank during 2017", the CBI FIR has alleged. The ministry has issued strict instruction to all banks that no big fish should go scot free and no honest borrower is harassed, bank officials said.

It is learnt that Modi whose operations are spread across Europe, the US, Middle East and Far East besides India - has written to PNB and other banks that he would return their outstandings.

According to the CBI, Modi had left the country on January 1 much before they received the complaint.

"The stock worth Rs 5100 crore including gold & diamond jewellery, precious stones etc recovered during the searches were seized under PMLA", the agency said in a statement.

PNB CMD Sunil Mehta told reporters that the bank detected the fraud and has referred the matter to the law enforcement agencies.

ED teams swooped down and carried out simultaneous raids on Modi's offices, showrooms and diamond workshops in Mumbai, Surat (Gujarat) and New Delhi.

It is said to have sought the help of the government to get out of the mess. These companies had opened current accounts at a domestic branch of PNB and as per the LoUs, money would have been paid by the bank to overseas sellers in foreign currency. "Based on these transactions other banks appear to have advanced money to these customers overseas", PNB said.

Nirav Modi could be seen in the group photo which also features PM Modi.

The billionaire jeweller left India on January 1, before a police case was registered against him later that month, a federal police source told Reuters.

Indian federal agents last week said they were investigating the jeweller and others over accusations that they defrauded PNB of $44 million.

He said allegations made by the Congress over the issue were "baseless".

Gitanjali Gems shares continued to slump with a plunge of 20 per cent today.

SEBI and stock exchanges have begun analysing the stock market trade details of all entities associated with Modi including Choksi, who has already been under scanner for various cases including a brokerage default incident.

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