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Timeline: Developments in the $2 billion Punjab National Bank fraud case

Reuters 

(Reuters) - A $2 billion at India's second-biggest Punjab National has shaken the nation's financial sector, triggering a massive probe and regulatory changes.

The following is a timeline of how the case has unfolded:

Jan. 29, 2018:

Punjab National (PNB) files police complaint against jewellers Nirav Modi, and others, saying they had colluded with two of its staff to defraud the of 2.81 billion rupees ($43.16 million

Feb. 5, 2018:

(CBI) says has launched a probe into the alleged scam. Bank tells stock exchange it is still investigating the extent of the

Feb. 14, 2018:

PNB now discloses the amount involved in the as $1.77 billion, adds other banks overseas advanced money to jewellers based on the fraudulent guarantees issued by its staff

Feb. 15, 2018:

PNB holds conference, says working with enforcement agencies, regulators, other banks

says Modi, Choksi left before PNB filed complaint

Feb. 16, 2018:

files case against Choksi's Gitanjali Group, conducts searches at 20 of the jewellery retailers locations

PNB tells putting in place better checks and balances, hopes to recover within six months

Reserve Bank of India, the Indian central bank, says will take appropriate supervisory action

State-run says it has exposure of about $300 million related to the PNB incident, while says its exposure is about $212 million

Feb. 17, 2018:

makes first arrests in the case, two PNB employees and an of Nirav Modi's group detained

State-run says it has about $412 million in exposure to fraudulent transactions carried out at PNB

seizes a cumulative 56.74 billion rupees worth of diamonds, gold and jewellery from Nirav Modi's home and offices http://bit.ly/2tv1af9

Feb. 19, 2018

CBI arrests three more PNB executives

Feb. 20, 2018

PNB shares fall for fifth trading session, wiping off $1.9 billion in market capitalisation

Finance Minister slams oversight lapses, without directly referring to PNB case

asks banks to implement measures to strengthen their oversight of the SWIFT interbank messaging platform

Modi's denies wrongdoing by client; writes to PNB saying his companies owe much less than the sums reported

(ED) says investigating more than 100 shell companies allegedly used by and Choksi to route funds

CBI arrests three officials from Modi's group, two from Gitanjali

Feb. 21, 2018:

CBI arrests PNB Rajesh Jindal, who headed the bank's Brady House branch in between August 2009 and May 2011

writes to his employees in India saying they should look for other jobs as he would not be able to pay them salaries after the seizure of his assets

Feb. 22, 2018:

ED seizes nine luxury cars belonging to Modi and his firms; freezes shares and mutual funds worth 78 million rupees held by Modi and 867.2 million rupees held by Choksi

Feb. 23, 2018:

group of India begins probe into PNB fraud

RBI orders linking of SWIFT system with banks' core accounting software by April 30, among other measures, Feb. 20 letter to banks shows

Bollywood star Priyanka Chopra announces cutting ties with Nirav Modi's brand

February 24, 2018:

Choksi writes an open letter to employees of protesting innocence and telling them to look for other jobs

ED seizes 21 properties including a farmhouse, a solar power plant and land belonging to Modi worth 5.24 billion rupees

Feb. 27, 2018:

PNB says the amount of fraudulent transactions has gone up by about $204 million to $1.97 billion

Modi's firm Diamond files for bankruptcy in the United States

Feb. 28, 2018:

CBI arrests former PNB M.K. Sharma, who was responsible for auditing systems and practices of the bank's Brady House branch

March 1, 2018:

PNB appoints as for five group companies belonging to Modi

CBI arrests another former PNB internal auditor, Bishnubrata Mishra, who was responsible for audits at the branch between 2011 and 2015

March 3, 2018:

Authorities say gold and diamond bribes given to one PNB staffer named in fraud

says its exposure to the fraud is about $367 million

March 4, 2018:

CBI makes four more arrests - two former employees of Modi's International, an auditor of Modi's group and a former of one of Choksi's companies

March 6, 2018:

CBI arrests a of Gitanjali group

(SFIO) meets executives from Axis Bank, over Modi, Choksi exposure

March 7, 2018:

PNB meets SFIO officials in Mumbai

March 8, 2018:

Choksi accuses investigating agencies of gross abuse of due process in ongoing probe

(Reporting by Krishna V Kurup in Bengaluru; Additional Reporting By Patturaja Murugaboopathy; Editing by Euan Rocha)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Thu, March 08 2018. 15:24 IST
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