Five days after the Rs 11,345 crore fraud at the Punjab National Bank became public knowledge, anti-corruption watchdog CVC was reported to have stepped in and banks were understood to have shared details of the case in which diamond czar Nirav Modi allegedly colluded with a former bank employee for obtaining fake Letter of Understandings (LoUs).
According to a report by PTI, Central Vigilance Commissioner K V Chowdary on Monday morning met PB officials and the Finance Ministry officials. Although, they refused to comment about their meeting; PTI citing sources said that the PNB has shared details of the action taken by them to deal with the fraud.
The PNC fraud, since it first came to light on February 14, has undergone many developments including several arrests and a multi-agency probe. The fraud was detected in the third week of January but it was reported that Nirav Modi and other accused left the country much before that.
The Central Bureau of Investigation (CBI) booked Nirav Modi, his wife, his brother and close aide Mehul Choksi on January 29. So far, over the CBI and the Enforcement Directorate (ED) have raided over 65 locations related to Nirav Modi and Mehul Choksi and claimed to have seized jewellery, gold and diamond worth over Rs 5,000.
The government, in the meantime, has suspended passport of Nirav Modi and others and an Interpol diffusion notice has also been served. As the fraud continues to unravel, Indian stocks market traded in red on Monday with the Sensex diving 437 points as banks bled due to their exposure to the fraud.
Earlier in the day, State Bank of India chairman Rajnish Kumar said that the bank will resolve the LoU settlement amicably. India’s biggest lender SBI has disclosed an exposure of Rs 1,360 crore, while the Union Bank of India has an exposure of Rs 1935.45 crore and UCO Bank Rs 2656.8 crore.
However, a report claiming that Union Bank of India, Axis Bank and Allahabad Bank together may have an exposure of Rs 17,632 crore has been denied with the Finance Ministry, according to ET Now, which quoted agency reports.