PNB Fraud: ED Director Takes Charge Of Nirav Modi Probe

Billionaire diamantaire Nirav Modi is believed to be in Dubai, media reports quoting investigation agencies said. The Central Bureau of Investigation (CBI) could have been tipped off on Modi’s whereabouts by undisclosed sources, India Today said.

On a day of fast developments, the director of Enforcement Directorate (ED), Karnal Singh, personally took charge of the investigation into the case in which Modi cheated the Punjab National Bank (PNB) and others to the tune of over Rs 11,500 crore. The ED is set to issue a letter of rogatory to Hong Kong and other countries where the funds have allegedly been diverted to.

The ED, simultaneously, began a probe into 250 shell companies linked to Modi and his uncle, Mehul Choksi, the owner of Gitanjali Gems that is also under suspicion for involvement in this case, for money laundering. These shell firms could have helped Modi and Choksi to move ill-gotten financial assets by defrauding PNB. These firms were also involved in money laundering.

The government asked the Reserve Bank of India (RBI) for details on its fraud prevention framework and find out its efficiency. It asked the RBI why the PNB fraud couldn’t be detected by the bank’s system. The RBI was also asked to look into any supervisory lapse in the case.

Earlier in the day, the CBI sealed the Brady House branch of PNB to go through the files, but unsealed it later in the evening. The branch was closed for Shivaji Jayanti and no customer was put to any difficulty in view of the probe. The agency called the chief financial officer of Modi group for investigations. It has already investigated some 11 persons in connection with the scam.

Media reports quoting CBI sources said that more PNB staff used the SWIFT transfer system. PNB chief executive officer Sunil Mehta, the bank’s chief vigilance officer, and officials from the Finance Ministry met the Central Vigilance Commissioner K V Chowdhary at a meeting to provide details on the scam.

Reports said Gokulnath Shetty, a key suspect in the case, told the investigators that some junior officials in the bank too had access to the SWIFT system.

The Times Now channel reported that the Karnataka High Court had issued a non-bailable warrant against Choksi in 2016, but it was not executed.

Another fact that came to light was that Modi’s kids discontinued school six months ago in the middle of the academic year and shifted base to the United States with his wife.

CNN-News18 also reported that Modi helped his high-profile customers to exchange Rs 90 crore cash on a single day on 9 November 2016, soon after the government announced demonetisation, by backdating sales and vouchers.