Friday, 21 September, 2018

Court sends three accused in PNB fraud case to police custody

Jeweller and diamond trader Nirav Modi Jeweller and diamond trader Nirav Modi
Nellie Chapman | 18 February, 2018, 02:20

They were sent to CBI custody for 14 days by a Mumbai court, which said the scam has "consequences for the economy of the nation" and that it was a "very serious offence". Manoj Kharat was just a clerk and typed letter under pressure from Gokulnath Shetty.

On 31 January, the CBI registered an FIR against Nirav Modi, his companies and his uncle Mehul Choski.

In a statement late yesterday, India's central bank said it "has already undertaken a supervisory assessment of control systems in PNB and will take appropriate supervisory action".

Only if the arrested persons spill the beans, the agency sleuths will be able to dig into the actual conspiracy, an official remarked. A look out circular has been issued against the four.

"However, the then government chose to fire him and got him to resign".

While the apex vigilance body of the country-CVC-wants to know from the PNB management how the scam remained undetected for so long, the corporate affairs ministry is looking into 150 shell companies allegedly used to route money.

The Congress leader added, "Nirav Modi's company was a tenant of a Kamla Mills property owned by Adwait Holdings in which my wife and sons are a director".

The three accused were the first ones to be arrested in the sensational case by the CBI from different parts of Mumbai and Raigad.

The country's largest lender SBI on Friday 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 have arrested Gokulnath Shetty, the retired Deputy Manager with the bank, Manoj Kharat, who was employed as Single Window Operator at the bank and Hemant Bhat, the authorised signatory for the Nirav Modi group on Saturday morning", said an officer.

Congress President Rahul Gandhi on Saturday targeted the BJP-ruled central government over the alleged Punjab National Bank (PNB) fraud case to the tune of over Rs 11,300 crore and accused Prime Minister Narendra Modi of "destroying the financial system" of the country.

The Congress president also said that the former Finance Minister, P. Chidambaram, explained to the Steering Committee that a "fraud of this scale can not take place without high-level protection".