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ED set to chargesheet Nirav Modi, Mehul Choksi in PNB fraud case

11 April 2018

Meanwhile, the Ministry of External Affairs, in its written response to a specific query in Lok Sabha, said Nirav Modi is in Hong Kong.

The Modi-Choksi fraud had not been discovered then but PNB was the lead bank in one of the loans given to Mehta as well. The government has claimed to have tracked Modi in Hong Kong where it has sent a request for his provisional arrest.

The Supreme Court on made it clear that it can not monitor the ongoing probe into the over Rs 11,000 crore Punjab National Bank fraud case and said it would first decide whether a PIL seeking a court-monitored SIT probe into the scam was maintainable or not.

CBI counsel Om Prakash told the court that Modi's Barclays bank account in the United Kingdom had about 12,79,517 pounds (about Rs 12 crore) and Dollars 1,244 (over Rs 80,000).

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Taking cognisance of the CBI applications, the special court issued the non-bailable warrants on Saturday.

Nirav Modi, who is from a long time on the lists of rich Indians since 2013 was named in the huge scam along with other companies like Diamond R US, Stellar Diamond and Solar Exports, and also an uncle and business partner.

Modi owned a chain of boutiques in Hong Kong. Choksi was the managing director of the Gitanjali group and is also wanted in the PNB fraud case.

An LoU is a guarantee which is given by an issuing bank to the Indian banks that have branches overseas to grant a short-term credit to the applicant.

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In February 2018, it had emerged that the fraudulently issued Letters of Undertaking (LoUs) from the Mumbai branch of PNB in favour of Hong Kong branches of Allahabad Bank and Axis Bank.

MoS, MEA, Gen (retd) VK Singh said the counterparts in Hong Kong have been approached seeking the provincial arrest of the diamond trader.

The CVC had also advised the Reserve Bank of India as well as the department of financial services (DFS), which comes under the finance ministry, to issue an advisory to banks to ensure control over forex remittances purportedly for the objective of imports and that banks should have specific standard operating procedures (SOPs).

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ED set to chargesheet Nirav Modi, Mehul Choksi in PNB fraud case