Police target PNB Mumbai branch auditors in $2 billion fraud probe

The big unknown is whether RBI’s new guidelines will lead to the declaration of more bad loans and hence more provisioning and higher losses

PNB Scam: ED Attaches 41 Properties Worth Rs. 1217 Crore Connected To Mehul Choksi

Earlier in the day, an Enforcement Directorate (ED) official told IANS: "At least 41 properties with a worth of Rs 1,217.20 crore belonging to Choksi and companies controlled by him have been attached".

Disgraced billionaire jeweller Nirav Modi, a key accused in India's biggest-ever bank fraud of 1.8 billion US dollars, has reportedly given a "concrete proposal" to state-owned Punjab National Bank to refund the money.

Stung by the Modi and Choksi fraud, banks have raised their guard while lending to jewellers.

Choksi along with Modi has been accused of defrauding the PNB of Rs 12,600 crore, with Rs 1,300 crore being added to the fraud kitty on Monday night. Investigators have also seized a number of properties from the two, including jewellery and luxury vehicles.

The Central Bureau of Investigation (CBI) has registered two cases against Modi.

Synergies is in turn wholly owned by Firestar Holdings Ltd, a Hong Kong corporation itself wholly owned by Modi's company Firestar International Ltd, according to the court filing.


In its bankruptcy filing in the Southern District of NY, the company claims to have assets and liabilities in the range of $50 million to $100 million.

The Rs 12,600 crore fraud-hit Punjab National Bank on Thursday clarified that the Reserve Bank of India (RBI) had done risk-based supervision of the bank on an annual basis.

Enforcement Directorate issued a provisional order for attachment of the properties in PNB case under the Prevention of Money Laundering Act.

The agencies may also try other extradition processes to bring Nirav Modi back to India to join the probe and cooperate in the investigation of one of the biggest bank fraud in the country.

Firestar Diamond Inc filed for bankruptcy protection on February 26 in the United States, following accusations that other firms led by Modi and his uncle colluded with officials of India's Punjab National Bank to secure unauthorised loans starting 2011.

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