New Delhi, Feb 19: Shaken by the enormity of the Punjab National Bank fraud case involving celebrity diamond merchant Nirav Modi, the Central Vigilance Commission (CVC) on Monday met top officials of the affected PSU bank and finance ministry in New Delhi. According to a report, Central Vigilance Commissioner KV Chowdary met the officials and asked for a report over how nearly Rs 11,400 crore was siphoned off.
Sources said PNB officials shared details with the CVC of action taken by the bank in the fraud case. The bank also informed the commission about the action initiated against officials allegedly involved in the scam. (Also read: Fraud-hit PNB Was Honoured With Vigilance Excellence Awards Thrice)
The CBI has registered two FIRs – one on January 31 and another a few days ago – against Modi, his relative Mehul Choksi of Gitanjali Gems and others for allegedly defrauding PNB of about Rs 11,400 crore. (Also Read: Arrested PNB Official Shared Bank’s Password With Nirav Modi’s Company)
The CVC also met a Superintendent of Police of Bank Security and Fraud Cell of the Central Bureau of Investigation (CBI) in connection with the scam, the sources said.
Raids on Nirav Modi, Mehul Choksi Continue
Meanwhile, the Enforcement Directorate (ED) continued raids, searches on properties of Nirav Modi and his relative Mehul Choksi, owner of Gitanjali brand of showrooms, for the fifth consecutive day.
Apart from Mumbai, the central agency conducted searches at 34 other locations in various cities, including Mumbai, Pune, Aurangabad, Thane, Kolkata, Delhi, Lucknow, Bengaluru and Surat, in connection with its probe.
The agency has seized diamonds, gold jewellery and other precious stones worth Rs 5,694 crore till now in the case even as it has summoned Modi and his relative Mehul Choksi, the promoter of Gitanjali Gems, later this week. Sources said the ED was looking at collecting all the financial documents — personal and official — of Modi, Choksi and their businesses in order to take the probe forward. (Also Read: Top Executives of Mehul Choksi’s Gitanjali Gems Quit Citing Personal Reasons)
Will Honour All “Bonafide Commitments”: PNB
The PNB has assured that it would honour all “bonafide commitments” under Letter of Undertakings (LoU) and Foreign Letters of Credit (FLC) as per the law.
“PNB clarifies that we will honour all our bonafide commitments under LoUs and FLCs as per law of the land and as per specific existing guidelines of regulator i.e. RBI on LOUs and FLCs,” the company said on its website.
(With inputs from agencies)