PNB Scam: Rahul Gandhi leads Congress protest against Centre

PNB Scam: Rahul Gandhi leads Congress protest against Centre

PNB Scam: Rahul Gandhi leads Congress protest against Centre

The Delhi High Court on Wednesday issued a notice to the Enforcement Directorate after Nirav Modi's firm Firestar Diamond International filed a petition challenging the agency's authority to search its properties.

In a related development, the Enforcement Directorate, which is also investigating the Rs. 12,600-crore PNB fraud case, has made a decision to send Letters Rogatory to over 15 countries against diamond jeweler Nirav Modi and Mehul Choksi.

The agency official also said they have questioned four more treasury department officials who bear the ranks of bank general manager and assistant general manager.

On January 31, the agency had registered an FIR pertaining to LoUs worth over Rs 6,400 crore against the diamond trader.

According to court filings, the exposure to three companies controlled by Modi has been estimated at RS6,498 crore ($1 billion), while firms controlled by Choksi have been accused of defrauding the bank of Rs6,138 crore. The transactions were carried out from PNB's Brady House branch in Mumbai.

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The CBI had filed the first FIR in the scam on February 14 against Nirav Modi, his wife Ami, brother Nishal, uncle Choksi and his firms Diamond R US, Solar Exports and Stellar Diamond. "The bank is not the leader of the lending consortium in these groups".

A consortium of 31 banks had extended Rs5,280 crore working capital facility to Choksi's companies.

The agency has issued Letter of Request (LRs) to ten countries seeking details of bank accounts of Modi, Chokshi and the shell companies. "His popularity is no good for the country if he is unable to bring back to the country the people behind these huge bank scams", Azad said. It is alleged that they got LoUs and FLCs of Rs 12,636 crore issued in favour of foreign branches of Indian banks based on fraudulent claims.

The CBI had on Monday secured a 12-day remand of four accused arrested in the alleged PNB fraud case.

Finance minister Arun Jaitley, however, told parliament on Tuesday that PNB had "sound fundamentals and strong growth potential" with its high share of low-priced current and savings accounts deposits, stabilising bad loans and scope to raise funds by selling non-core assets.

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