UCO Bank has $412 million exposure in PNB banking fraud case

Marcus Newton
February 19, 2018

"All the looted money has been taken out from the people's pocket and now PM Modi's friends and close companions are robbing the money from the banking sector", Rahul said.

Hemant Bhat, an authorized signatory of the Nirav Modi Group of firms, has also been held, Gaur said. It also attached 29 properties and 105 bank accounts of Nirav Modi, his family members and firms owned by them. Speaking to reporters, Sitharaman said that Nirav Modi-run Firestar Diamond International was leased a property of a company in which Singhvi's wife is a director.

"CBI must get fair chance to investigate this very serious offence, which has consequences for the country's economy", said judge S R Tamboli, as PNB employee Shetty shifted nervously and blinked frequently.

The action is based on a Central Bureau of Investigation (CBI) case registered against Nirav Modi on Wednesday in connection with a fraud involving Rs 6,498 crore.

On Saturday, the Income Tax department attached nine bank accounts of Gitanjali Gems, Mehul Choksi and others. Among those that offered credit to Choksi and Modi, famous for his chain of stores stretching from NY to Beijing, were the Union Bank of India, Allahabad Bank and Axis Bank, the tax note said.

The chief minister also alleged the scams that had happened during the previous Congress-led UPA government were still going on under the current government.

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India's state-run UCO Bank said it has Dollars 411.82 million in exposure to fraudulent transactions carried out at Punjab National Bank (PNB). The amount raised through the Hong Kong branch of the Italy-based bank by the Gitanjali group company headed by Mehul C. Choksi, who left the country in January, is $2,200,011.65 (Rs 14.08 crore) against an FLC given by PNB, which is coming up for payment on March 19.

PNB officials were also summoned, the report said, citing an official aware of the development. Top officials of PNB and the Finance Ministry have been asked to appear before the CVC on February 19.

Gandhi said the first complaint was made in May 2015 and the bulk of 90 per cent of transactions were done during this government.

"With the help of Ministry of External Affairs through Consulate General of Shanghai and Istanbul and office of the National Cyber Security Council (PMO) all possible efforts through diplomatic and legal channels are being taken to repatriate the money", it said.

The agency conducted searches at several places linked to Nirav Modi in Mumbai, Delhi and Gujarat, and seized diamond, jewellery and gold worth Rs. 5,649 crore.

Other reports by MaliBehiribAe

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