Budget 2018-19

  The diamantaire, wanted in India on charges of fraud and money laundering in the estimated USD 2-billion Punjab National Bank (PNB) scam case, lost his legal battle against extradition The government will liaise with the UK authorities for early extradition of Nirav Modi, the Ministry of External Affairs (MEA) said on Thursday, hours after a British court rejected the fugitive businessman’s plea against being extradited to India. The diamantaire, wanted in India on charges of fraud and money laundering in the estimated USD 2-billion Punjab National Bank (PNB) scam case, lost his legal battle against extradition on all grounds as District Judge Samuel Goozee also concluded that there are no human rights concerns that his medical needs would not be addressed as per several Indian government assurances. Replying to a query during an online media briefing, MEA spokesperson Anurag Srivastava said that since the Westminster Magistrate’s Court has recommended to the UK Home Secretary fo...

As part of its probe in the PNB fraud case, ED will send judicial requests to over a dozen countries for obtaining information about the overseas businesses and assets of Nirav Modi and Mehul Choksi Nirav Modi and Mehul Choksi's overseas businesses and assets across more than a dozen countries are under the scanner of the Enforcement Directorate (ED), which will soon send judicial requests to countries like Belgium, Hong Kong, Switzerland, the United States, the United Kingdom, Dubai, Singapore, and South Africa for obtaining information about them as part of the widening of its probe into the Rs 114-billion Punjab National Bank (PNB) fraud case. Nirav Modi, his wife Ami, and uncle Mehul Choksi have been summoned by the ED to appear at its zonal office in Mumbai on Monday. According to sources, if they skip the summons, the agency could approach a special PMLA court to get non-bailable warrants issued against them. Modi has already had his luxury cars, includ...

RBI seeks detailed report on what happened between 2011 and now; bankers to recall loans to  Nirav Modi entities   The Reserve Bank of India (RBI) has advised Punjab National Bank (PNB) to pay up dues to banks for claims against letters of undertakings (LoUs) and also sought a detailed report on what happened between 2011 and now. Moving into damage control mode after the LoU fraud amounting to Rs 114 billion, the banking regulator also asked all lenders to tighten their monitoring of such LoUs and enhance due diligence in issuing these letters of comfort and non-fund based activities. A top executive at a Mumbai-based public sector bank said the RBI had communicated that PNB would have to honour all its obligations related to LoUs. A junior branch official fraudulently issued LoUs without authority on behalf of firms belonging to the Nirav Modi group — Solar Exports, Stellar Diamonds, and Diamonds R Us — for availing of buyers’ credit from overseas branche...

Some banks have direct exposure to Nirav Modi's companies The fraudulent transactions at Punjab National Bank are likely to hit the books of other lenders as well. Doubts about similar fraudulent practices at other banks were gathering steam, analysts said. The impact of the PNB fraud will extend to counter parties (lenders), hit their asset qualities and increase provisions for bad loans. Most bankers said the entire liability would fall on PNB since the letters of understanding (LoUs) availed by Nirav Modi’s companies were issued on behalf of the bank’s Mumbai branch. Some banks, however, have direct exposure to Nirav Modi ’ s companies, though they have been standard assets so far. Bankers said Modi sent LoUs to banks stating that he would square off all his dues and that his company Firestone Diamond was up for sale. The valuation of the company was Rs 105 billion, he claimed in the letter. But according to a PTI report, the CBI investigation has now...

Confirming the development, an ED official said that search operation is underway and would continue for two days The Enforcement Directorate (ED) is conducting searches at the residences of Nirav Modi and 11 other locations in Mumbai and Delhi in connection with the Rs 2.8 billion fraud of Punjab National Bank (PNB) allegedly by Modi and others. ED on Wednesday registered an enforcement case investigation report under the Prevention of Money Laundering Act (PMLA) on the basis of first information report (FRI) filed by Central Bureau of Investigation (CBI) in January. Also Read :   PNB names Nirav Modi and Gitanjali Gems in the mega Rs 114-bn fraud Confirming the development, an ED official said that search operation is underway and would continue for two days. Sources said the enforcement agency is looking at whether the alleged fraud amount was laundered and these proceeds of crime were subsequently used by the accused to create illegal assets overseas. ...

Modi has been relentless in building his brand regardless of banks having a problem of fraudulent unauthorised transactions with his companies Just about a week ago, diamond jeweller Nirav Modi opened a new store in Macau. Barely three months ago, he had opened a second store in DLF Emporio’s Chanakya mall in New Delhi, with plans for another one, in Bengaluru, later this year. Modi has been relentless in building his brand regardless of banks having a problem of fraudulent and unauthorised transactions with his companies. His website is running Valentine’s Day promotions beside pictures of Hollywood celebrities wearing his jewellery and details of the fashion shows he sponsored recently. Modi’s ambition was to expand to 100 stores by 2020, not unusual for a brand that is trying to grow. He has boutiques in New York, Las Vegas, Honolulu, Singapore and Beijing. There is one store in London, three stores in Macau, and four stores in Hong Kong, where Modi's sister Pu...

Core banking system bypassed to issue unauthorised and fraudulent guarantees   In what may turn out to be one of the biggest scams in the country’s corporate history, Delhi-based Punjab National Bank (PNB) said on Wednesday it had been defrauded of about Rs 114 billion by jeweller Nirav Modi, his maternal uncle Mehul Chinubhai Choksi, and other relatives through a clutch of companies they own. The country’s second-largest public sector bank (PSB) said two of its employees were involved in the scam, where the bank’s core banking system was bypassed to raise payment notes to overseas branches of other Indian banks, including Allahabad Bank, Axis Bank, and Union Bank of India, using the international financial communication system, SWIFT. Three jewellers  Gitanjali  Gems and its subsidiaries Gili and Nakshatra are also under the scanner of investigation agencies. Executives in other banks said they were insulated against the fraud, as the payment r...