Reality of PNB Scam and Nirav Modi by Dhruv Rathee

India arrests 3 linked to billionaire jeweller in bank scam

Three held in $1.8 bln Indian public sector bank fraud case

Nirav Modi, the prime accused, fled the country just before the scam came to light. The 147 LoUs, issued by PNB, starting March 2017, will mature by March 2018.

This Rs 22,000 crore scam could not have been done without a high level protection.

Shetty, Kharat and Bhatt were called to the CBI office at BKC to understand the modus operandi about the scam.

In case of default, the bank issuing the LoU has to pay the liability to credit giving bank along with accruing interest. "Lots of agencies are involved in it and it is not possible until it gets nod from the top", he alleged.

As per the authorisation of Modi, Bhatt and Kavita Mankikar were authorised to sign on behalf of the firms with an Account Opening Form.

Police sources say Modi, whose high-end jewelry has been worn by Hollywood stars including Kate Winslet, and Choksi left India last month and their whereabouts are unknown. A special court had remanded all the three accused to 14-day CBI custody.

The ED team members then searched the outlet and seized diamond studded jewellery worth around Rs 1 crore from the locker, the officials said. "The total seizures till now in the case is Rs 5,674 crore", ED spokesman Anil Rawal told IANS. The CBI and ED are conducting investigation. Meanwhile, six PNB officials are being examined.

One of the biggest financial scams of the country surfaced when companies of Nirav Modi and Mehul Choksi approached the PNB's Brady road branch in Mumbai in January this year seeking LoU for payments to suppliers.

"Nirmala Sitharaman and her colleagues are liable to civil and criminal defamation for making ignorant and patently false allegations". These properties are related to diamond merchant Nirav Modi, his relative and business partner Mehul Choksi and others. 'Neither Adwait nor my family has any interest with Modi or Firestone.

Congress president Rahul Gandhi on Saturday launched a scathing attack on prime minister Narendra Modi on the PNB scam allegedly involving Nirav Modi, asking him to explain why it has happened and what steps he is taking to ensure that the banking system is safe in India.

It also conducted raids in Goa, Jaipur, Srinagar and Jalandhar cities whose locations are yet to be confirmed, the official said.

The ED also seized diamonds worth Rs 2.30 crore from a Nakshatra jewellers showroom of Gitanjali Group in Bhopal.

The CBI's move comes after the agency on Saturday arrested former PNB Deputy Manager Gokulnath Shetty, single window operator Manoj Kharat and group's authorised signatory Hemand Bhat.

PNB officials were also summoned, the report said, citing an official aware of the development. A Finance Ministry spokesman was not immediately reachable.

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