Jeweller to the stars Nirav Modi seen behind the massive R 11,400 crore PNB fraud

New Delhi, FEB 14: One of India’s biggest banks has accused jeweller Nirav Modi — who’s dressed stars including Kate Winslet and Priyanka Chopra — of involvement in a multi-billion dollar fraud that could extend to other lenders, said people familiar with the matter.
Punjab National Bank (PNB) filed a complaint with the Central Bureau of Investigation (CBI), the federal investigation agency, alleging that Modi and companies linked to him fraudulently acquired PNB guarantees worth R10,000 crore ($1.6 billion) that they later used to obtain loans from abroad, the people said, asking not to be identified as the details aren’t public. The bank alleged that Modi worked with some junior PNB officials to get the letters, the people said.
PNB had already filed a case against Modi two weeks ago — the details of which have been made public — alleging a R 280 crore fraud and said it would check if the impact was deeper. It told the exchanges on Wednesday — without naming anyone — that a $1.8 billion fraud was detected at a single branch in India’s financial hub. Officials detected some fraudulent and unauthorized transactions in one of its branches in Mumbai “for the benefit of a few select account holders with their apparent connivance,” PNB said in the statement. “Based on these transactions other banks appear to have advanced money to these customers abroad.”
Press Trust of India and ET Now television channel had earlier reported about the Rs10,000 crore case against Modi.
Rajiv Kumar, India’s top banking bureaucrat, told BloombergQuint that the case is an isolated one that dates back to 2011. About 10 PNB employees have been suspended pending a CBI investigation, he said. He didn’t name any of the accused. (Agencies)