PNB Fraud: ED Filed Case against Billionaire Jeweler Nirav Modi for Money Laundering

Punjab National Bank (PNB) has made two complaints from the CBI in the case of transactions worth Rs. 11400 crores. These complaints have been made against billionaire diamond businessman Neerav Modi and a company making jewelry. Enforcement Directorate has registered a case of money laundering against the accused of the scam, billionaire jeweler Nirav Modi. Modi’s jewelry is popular among celebrities around the world and they may have to face CBI investigations because the agency wants appropriate legal action in the matter.

Facing a CBI probe already

Officials said that he is facing CBI probe in alleged fraud and cheating case of Rs 280 crore in PNB branch. They said that the PNB got two complaints yesterday, in which it alleged that the bank detected fake transactions worth more than Rs 11,100 crore, including Modi and jewelry company.

The officers did not elaborate further on further action in the complaint received from the National Bank. He said that appropriate legal action can be taken against the designer and the company. It was not clear whether the jewelry mentioned in the complaint was linked to Modi or not.

Meanwhile, the bank has informed the stock exchange BSE about 1771. 69 million dollars in a branch of Mumbai about “fraud and unauthorized transactions”. In the information given to BSE, PNB said that the bank has come to know about some fraud and unauthorized transactions in the Mumbai branch.

Billionaire Jeweler Nirav Modi
Billionaire Jeweler Nirav Modi

Jewelry companies like Gitanjali, Ginni, and Nakshatra are in the investigation

In this scandal, many jewelry companies like Gitanjali, Ginni, and Nakshatra have also come under the scrutiny of various investigating agencies. Punjab National Bank revealed in the morning that it has caught a fraudulent transaction of $ 1.77 billion (Rs 11,346 crore). The case has been sent to law enforcement agencies for recovery. A senior official of the public sector bank said, “Four big jewelry companies are under the scanner of Gitanjali, Guinea, Nakshatra and Neerav Modi investigations. CBI and Enforcement Directorate are investigating the final use of the bribe and funds from their various banks.

The official said that there is a strict directive from the Finance Ministry that no big fish can survive and the honest taxpayer should not have any problem. The official said that the bank is now examining its system and procedures so that such a scam does not recur. All banks have been asked to report status as soon as possible. In the Bank of Baroda in 2015, there was a case of fraud of Rs 6,000 crore by two Delhi businessmen.

Ministry of Finance, PNB fraud case is not out of control

The Finance Ministry has said that this matter is not “out of control” and proper action is being taken about it. “I do not think it is a matter of great concern outside or out of control,” said Joint Secretary Lokanjan in the Financial Services Department on the occasion of a program here.

Earlier in the day, PNB disclosed that he has detected some fraudulent transactions. These transactions are $ 1.171 billion or about 11,334.4 million rupees. This case has been sent to law enforcement agencies for recovery. The bank said that on the basis of these transactions, other banks have probably given loans to some customers abroad.

This matter has already been sent to Law Enforcement Agencies, which will take action against the guilty according to the law. The bank said that it is committed to clean and transparent banking. In less than ten days this second case of bank fraud has emerged. Earlier on February 5, the CBI had registered a fraud case involving Rs 280.70 crore with PNB in 2017 against billionaire diamond trader Neerav Modi, his wife, brother and a business partner.

About Devesh Sharma 19 Articles
A highly experienced leader in global and emerging market brand valuation projects; a brand expert strong in creating data-driven insights. Demonstrated media and PR capabilities with rich business development experiences. Solid deal origination and execution experiences in M&A, business valuation and private equity financing in Unites States and United Kingdom cross-border transactions. Fluent in English, Mandarin and Cantonese. Specialties: Website Content Writing, SEO Content Writing, Content for Social Media and Fiction

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