Nirav Modi's passport revoked, PNB directors questioned

Nirav Modi's passport revoked, PNB directors questioned

The ED had earlier seized bank deposits, shares and luxury cars worth over Rs 100 crore belonging to the businessman and his group.

"We are at present seeking information from banks which have given bigger loans".

The Indian Express has quoted an official saying the agency "want (s) to see on what basis these loans were granted and whether these are still recoverable".

They are not being treated as accused, the officials said.

They said the examination was focussed on understanding how the crime was detected by the bank and other procedural issues and their violations.

Close on the heels of a massive Rs 11,300 crore PNB scam, three fresh financial frauds have come to light including the alleged involvement of a Delhi-based jeweller, who has been accused of defrauding the Oriental Bank of Commerce (OBC) to the tune of about Rs 390 crore through Letters of Credit.

The government had moved the Mumbai bench of the National Company Law Tribunal (NCLT) to confiscate all 114 properties owned by beleaguered diamantaire Nirav Modi and his maternal uncle and partner Mehul Choksi on Friday.

With the ED attaching the properties of the duo diamantaires, it seems unlikely that they would be able to repay the loans taken by them from these banks.

A CBI official familiar with the probe said PNB's managing director and chief executive officer Sunil Mehta and executive director Brahmaji Rao were called for questioning in Mumbai to seek their "clarification" on certain aspects of the fraud that remained undetected for nearly seven years.

While the Samudra Mahal properties and two other flats in Punes Hadapsar area are in the name of Modi and his wife Ami, the assets attached in the pricey Kalaghoda and Opera House area in the Maharashtra capital are in the name of Modi's diamond firm- Firestarter Diamond International Private Limited.

The Central Bureau of Investigation (CBI) and the ED have registered two FIRs in the is said that Modi and Choksi have left the country before any case have been registered against them. With investigative agencies cracking down on both groups and attaching their assets, many other banks, in addition to PNB, may struggle to recover the money loaned to these groups.

Mudra is a refinancing scheme, that is, it doesn't involve direct lending from the govt. Loans are given by public sector banks, NBFCs, and MFIs.

Meanwhile, questioning of 12 arrested accused persons continued on Saturday, said a CBI official, adding all of them were were also confronted during examinations.

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