Appropriate supervisory action to be taken in Nirav case: RBI

In the new FIR, it has mentioned 143 Letters of Understanding – bank guarantees issued for overseas import payments – and 224 foreign letters of credit. “We are making sure that the money is recovered”, he added.

The three accused are Gokulnath Shetty, then deputy manager of Punjab National Bank (PNB) and Manoj Kharat, SWO (single window operator) of PNB and Hemant Bhat, Authorised Signatory of the Nirav Modi Group of Firms.

Hari Prasad asked the Prime Minister’s Office to make urgent intervention ‘before it becomes too late and the accused flee from the country like Vijay Malaya of Kingfisher group.

The BJP-led NDA government fielded senior Cabinet ministers Friday to say that the scam started in 2011, when Congress-led UPA was in power. “Several other actions being taken by govt”. “They will be produced in a special court sometime later today”, a CBI spokesman said speaking on condition of anonymity.

He denied that his family had any links with billionaire designer Nirav Modi and Gitanjali group owner Mehul Choksi who are accused in the Punjab National Bank fraud case. Accused Nirav Modi is now believed to be in NY.

Modi, the jeweler, was as recently as last month at the World Economic Forum in Davos where the Indian prime minister, who is no relation of his, was a star guest. While the agencies have issued a lookout circular against Nirav Modi, Bollywood celebrities like Rishi Kapoor, Richa Chadha, and Vivek Agnihotri have raised questions about the major banking fraud carried out by billionaire diamond trader Nirav Modi.

“The ED conducted further searches at 21 locations across India in Nirav Modi case and seized diamonds, gold, precious stones/metals and jewellery worth Rs 25 crore (book value)”.

Indian banks, including PNB, have been stung by a surge in bad loans in the past four years, choking lending growth vital to accelerate the pace of expansion in Asia’s third-largest economy. It said that Choksi has never had any dealings with Solar Exports or Stellar Diamonds, stating that he retired as a partner from Diamonds R Us in 1999 and since has had no “association or dealings” with the company.

The SFIO will also look into all the companies belonging to Nirav Modi, wife Ami, brother Nishal Modi and uncle Mehul Choksi.

The CBI also filed a fresh FIR against Choksi and Gitanjali Gems, the company he promoted.

While SBI has a robust risk-management system and a well-recognised internal audit system, Rajneesh Kumar said the banks also keeps personnel in key positions rotating to avoid lender-borrower connivance.

The Enforcement Directorate on Friday seized assets worth ₹25 crore in connection with the Punjab National Bank fraudulent transactions case.