Published: Sun, February 18, 2018
Culture&Arts | By Laurence Reese

CBI arrests three in PNB fraud scam case

CBI arrests three in PNB fraud scam case

As many as 35 locations in 11 states have been searched and diamond, gold, jewellery, and precious stones worth over Rs 5,100 crore sealed.

Indian broadcaster NDTV reported on Friday that Modi was staying at an apartment in New York's Manhattan.

Mr Modi runs an global jewellery empire - featuring a string of high-end brands - that reaches from India to NY.

The CBI FIR alleged that Shetty and Karat in connivance with accused companies defrauded PNB to the tune of Rs 4,886.72 crore during 2017-18.

Bank officials say the scam appears to have begun in 2011, and occurred at just one Mumbai branch of the enormous state-run bank.

Mumbai: The ripples from the diamond scam have widened, sucking in more officials at overseas branches of Indian banks and an Italian banking group.

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Like the first FIR, this complaint accuses retired deputy manager Gokulnath Shetty and Manoj Hemant Kharat of fraudulently issuing the LoUs and without making entries in the banking system to avoid detection. But the Indian banking system is extremely hierarchical...

It is not clear if any corrective action was taken by the management.

Modi and Choksi have not made any comment so far. Remember how everybody knew that Mallya, another of those super-rich, celebs, who consorted with film stars and cricketers, gobbled up over Rs.9000 crore worth of loans from banks and then fled to the United Kingdom in the nick of time?

A spokeswoman for India's tax authority told Reuters it had seized 105 bank accounts and 29 properties linked to Mr Modi and his companies, as it investigates possible tax evasion.

Mr Modi's name is a stamp of corporate India's growing global prestige. It also hinted that some documents pertaining to LoUs were missing.

Nirav Modi is one of India's richest people, with a personal wealth of $1.75bn, according to Forbes.

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Asked how he planned to raise funds to add new stores, he seemed unconcerned.

Of the total number of frauds, 2,084 cases saw the involvement of insiders, accounting to 12% of the cases.

As recently as last month, he was at the World Economic Forum in Davos.

Congress leader Kapil Sibal accused the Prime Minister and his government of bringing the economy to its knees, and warned that the country's image would get a beating internationally under him. "There was a personal touch in everything he sold".

On January 16, after Nirav Modi's associates were refused the LOU, they were ready to pay 100 per cent cash margin to avail the facility but it was too late.

Kejriwal said that during the era of the previous UPA government, the Congress used to earn from these scams, while now, the BJP government is benefiting from these frauds. Bhatt's lawyer Yashwardhan Tiwari said that his client worked for Nirav Modi as an accountant and did as he was directed to by his employers.

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