India federal police arrest three people in PNB fraud case

Punjab National Bank informed the stock exchanges on Wednesday that the fraud was detected in one of its branches in Mumbai and that it has referred the matter to law enforcement agencies

The CBI has arrested three people - former Deputy Manager of the bank, Gokulnath Shetty, Single Window Operator of the bank, Manoj Kharat, and the authorised signatory of Nirav Modi group of firms, Hemant Bhat.

Special CBI Court today sent all three accused arrested in PNB fraud case to police custody till March 3.

As per CBI FIR all these bank officials are now suspects and they are being investigated.

"These attachments have been made keeping in view the huge demand which is likely to be raised in the assessment proceedings which are underway in the case of Nirav Modi, his family members and group concerns", an I-T report, accessed by PTI, said.

According to the FIR, it was alleged in the PNB complaint that Gitanjali Gems, Gili India Ltd and Nakshatra Brand Ltd and their directors in connivance with Sethi and other officials had caused an alleged loss of Rs 4,886.72 crore to the bank.

The Indian government has suspended Nirav Modi's passport, but it has now emerged that the man at at the centre of the Rs 11,400 crore Punjab National Bank (PNB) scam may be holding dual citizenship.

The ED on Thursday registered an FIR under the Prevention of Money Laundering Act and conducted raids after surfacing of the alleged fraud by billionaire diamond trader Nirav Modi and his Mumbai-based firms - Diamonds R Us, Solar Exports, and Stellar Diamonds. The first information report filed by the Central Bureau of Investigation, however, says that most of the loans were issued or renewed in 2017-'18.

Although the case has once again drawn the attention to large frauds in banking system, the RBI has been cautioning about it for some time.

The scale of the fraud has sparked a slew of probes into the lender, as well as into Modi, his uncle Choksi and companies affiliated to both. The LoUs, issued when overseas import payments are involved, basically guarantee liability payment by one bank to another on behalf of its client.

Apart from Mehul Choksi, the party said, Nirav Modi also accompanied Prime Minister Modi during his Davos visit to attend the World Economic Forum last month.

The scam could reportedly be exposed because an employee of Nirav Modi told the Hong Kong branch of an Indian bank that the reason why a particular LoU was delayed was that an official of PNB's Mumbai office in Brady House had asked for a bribe to issue the guarantee.

His letter to the PMO clearly stated the fact that Mehul Choksi had taken massive bank loans worth nearly Rs 9872 crore but his assets are way below than the amount.

Related News:

  • Boko Haram hits Borno market, 'kills 15'

    Boko Haram hits Borno market, 'kills 15'

    The conflict with Boko Haram has killed more than 20,000 people and forced over two million to flee their homes. Three suicide bombers have hit the town of Konduga in north-east Nigeria , killing at least 18 people.

    Choosing Between General Electric Company (GE) and Ford Motor Company (F)

    Nomura set a $45.00 target price on General Motors and gave the company a "neutral" rating in a report on Thursday, February 8th. Bridgeway Capital Management Inc increased Yume Inc (NYSE:YUME) stake by 119,650 shares to 547,376 valued at $2.53M in 2017Q3.
    Chadwick Boseman, Emma Stone revealed as Oscars 2018 presenters

    Chadwick Boseman, Emma Stone revealed as Oscars 2018 presenters

    Also, we are excited to see our desi export Priyanka Chopra walking the red carpet with the biggest of Hollywood stars. Are you looking forward to the 2018 Oscars? The 90th Academy Awards air March 4 on ABC.
  • Simmons scores Rising Stars win

    Simmons scores Rising Stars win

    If you look at guys like LeBron - he didn't make it. "LeBron didn't make it and I think the last one was Blake (Griffin in 2011)".
    Small earthquake felt in Wales, southern England

    Small earthquake felt in Wales, southern England

    James Leonard wrote on Twitter: "Wow was that an natural disaster in Swansea my house just shook quake ". Closer to the epicentre, James Leonard tweeted: "Wow was that an quake in Swansea my house just shook".
    ISRO to launch Chandrayaan-2 mission to moon's South Pole

    ISRO to launch Chandrayaan-2 mission to moon's South Pole

    The lander will follow a strict descent trajectory & velocity for a soft landing after which, the rover will be deployed. The six-wheeled Rover will move around the landing site in semi-autonomous mode as decided by the ground commands.
  • Cartoons: Florida school shooting elicits 'thoughts and prayers'

    Cartoons: Florida school shooting elicits 'thoughts and prayers'

    The FBI was warned about school shooter Nikolas Cruz on January 5, and stated that they did "not follow protocol" about the tip. No police reports were immediately available for those calls so it was not possible to determine whether Cruz was involved.
    Zainab rape and murder case: Accused Imran Ali gets four death sentences

    Zainab rape and murder case: Accused Imran Ali gets four death sentences

    Two people were killed by gunshot wounds as angry protesters clashed with police, two others sustained bullet injuries. It was only after PFSA confirmed the matching of the DNA samples that he was rearrested on January 20 from Pakpattan.
    Prairie Lutheran Church in Eden Prairie sets Lenten services

    Prairie Lutheran Church in Eden Prairie sets Lenten services

    Donations are welcomed and needed for the repair/replacement of the boiler at Trinity UMC, Eighth and Butler streets, Chester. Memorial Presbyterian Church: celebrates Sunday worship at 1 p.m.at Linwood United Methodist Church, 1627 Chichester Ave.
  • Switzerland's Hoefflin skis to gold in women's slopestyle

    Switzerland's Hoefflin skis to gold in women's slopestyle

    The teenager's medal is Britain's second of the Pyeongchang Games after Dom Parsons won bronze in the men's skeleton on Friday. She said: "That was a really solid game and we really stepped it up and made a lot of good shots".
    Aiyaary banned in Pakistan, Neeraj Pandey's run-in with the country continues

    Aiyaary banned in Pakistan, Neeraj Pandey's run-in with the country continues

    The spokesperson for the film confirmed that the movie has "failed to get clearance for release in Pakistan". The film earned around Rs5.25 crore in India despite having almost half the number of screens Aiyaary had.
    Walk The Red Carpet of 'Red Sparrow' Premiere

    Walk The Red Carpet of 'Red Sparrow' Premiere

    Who is Dominika exactly? 2018 will be the year of horror and strong female characters/leads, I guarantee it. It seems as though the crew working on Jennifer Lawrence's latest project Red Sparrow were the former.


Most liked

United States and Russian Federation trade barbs over meddling
On Friday , Trump seemed to say that the new indictments should put an end to allegations of campaign collusion. The notion that a foreign adversary might be targeting campaign officials never occurred to them, Wiles said.

Russians indicted for attempting to interfere in 2016 presidential election
The Russian Twitter bursts became part of this din and sought to reinforce existing biases more than they sought to change minds. Rosenstein said the indictment does not allege "that the charged conduct altered the outcome of the 2016 election ".

Nathan Chen Turns Page, Makes Olympic History By Landing 6 Quads
Zhou stayed right behind Chen in the final rankings, although he was more than 20 points behind. He also attributed the gold medal to Fernandez, a "friend and best competitor" as well.

Lindsey Vonn responds to Twitter trolls after failing to medal at Olympics
She turned in a solid time of 1:21.49, with a mistake near the end slowing her down and landing her in 6th place. It was her third Winter Games and she was certain she'd finally solved the puzzle.

Kepler astronomers discover a treasure trove of 95 new exoplanets
Kepler finds exoplanets by looking for dips in the light from a star as a planet passes across its face during its orbit. Mr Mayo said: "We found that some of the signals were caused by multiple star systems or noise from the spacecraft".

Did the FBI miss a warning before Florida school shooting?
The president focused instead on offering sympathy to the families of the victims and the need to provide better mental health care.

Moscow Says Washington's Indictment of 13 Russians"Absurd"
It outlined the first criminal charges against Russians believed to have secretly worked to influence the USA election's outcome. According to the indictment, those people were "supporting the presidential campaign of then-candidate Donald J.

Lovely's return a boost for Congress ahead of likely by
Under the Sheila Dikshit-led Delhi government, Arvinder Singh Lovely had a vital part as a minister. Somebody who lost his election deposit in 2015, was foisted on the party, he had said.

Israeli tank fires into Gaza after blast near soldiers
Israeli media said it was the highest number of Israelis wounded in a single incident since the 2014 Gaza war. Later in the evening Palestinians reported that IDF aircraft had hit a series of Hamas target across Gaza.

Ethiopia under state of emergency after prime minister resigns
Embassy to Ethiopia on Saturday released a statement opposing the most recent state of emergency declaration. Desalegn, 52, took over the post soon after the death of late Prime Minister Meles Zenawi in August 2012.

Much Colder Today; Rain Likely Saturday
Things get complicated with the next cold front as some models are hinting at it stalling out to the north and west of our area. Mountain counties could see a wintry mix for a few hours Saturday afternoon and early evening.

Advisory Services Network LLC Decreases Position in Carnival Corp (CCL)
A company that manages their assets well will have a high return, while if manages their assets poorly will have a low return. ValuEngine upgraded Carnival from a "hold" rating to a "buy" rating in a research note on Friday, February 2nd.

In a first, scientists directly observe electrons behind colorful auroras
Researchers had, however, questioned if the chorus waves were strong enough to stimulate the electrons enough to create auroras . The wonderful display has been seen across the northern hemisphere from Canada and Alaska to Sweden and Finland in recent days.

Marilyn Manson Cuts Concert Short After "Bizarre" Meltdown Onstage
But I wasn't really angry. "He should be held accountable for his actions and not get paid for this", said one commenter. After injuring his leg in 2017, Marilyn Manson was forced to reschedule a few dates on his North American tour .

Hubble Captures Neptune's Mysterious Dying Storm-And It Smells Awful
The newest storm was spotted in 2015, and is similar to the huge storm swirling on Jupiter, dubbed the Great Red Spot (GRS). A massive storm located on the surface of Neptune is mysteriously shrinking, but there might be an answer as to why.