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PNB fraud: Big jewellers Gitanjali, Ginni, Nakshatra under scanner

Banks are now looking at their systems and processes so that such frauds are not repeated

Press Trust of India  |  New Delhi 

PNB
Photo: Kamlesh Padnekar

Major jewellers Gitanjali, and have also come under the scanner of various investigating agencies following PNB's declaration of Rs 114 billion fraud, committed allegedly by Modi.

(PNB) disclosed this morning that it has detected some fraudulent transactions with financial implication of $1.77 billion (about Rs 113.46 billion) and the matter has been referred to law enforcement agencies for the recovery.

"Four big jewellers -- Gitanjali, Ginni, and Modi -- are under scanner. The and is looking at their arrangements with various banks and end use of money," a senior of a told

No immediate comments were available from these companies.

There is strict instruction from the ministry to all banks that no big fish should go scot free and no honest borrower is harassed, the said.

Banks are now looking at their systems and processes so that such frauds are not repeated, the said.

All banks have been asked to present a status report as soon as possible, he added.

In 2015, -- another -- had brought to light a scam in which two cheated it of Rs 60 billion which slightly less than $1 billion at that time.

Investigations revealed major irregularities, because the forex transactions were done mainly via advance remittances for import, through newly-opened current accounts. Heavy cash transactions -- sometimes four or five times a day -- were also noticed.

The Enforcement Directorate, under the revenue department of the ministry, had arrested the duo under money laundering provisions.

PNB said in a statement that fraudulent transactions took place in one of its branches in for the benefit of a few select account holders with their apparent connivance.

Based on these transactions, done by his brother Nishal, wife Ami and Mehul Chinubhai Choksi, other banks appear to have advanced money to these customers abroad.

All this was being carried out in connivance with officials as high as since 2011.

The has received two complaints from the PNB against billionaire diamantaire Modi and a jewellery company alleging fraudulent transactions.

Modi, whose jewellery creations are popular among global celebrities, may face a fresh probe as the agency is looking at suitable legal action to be taken in the case.

He is already being investigated by the CBI for alleged cheating and fraud involving Rs 2.8 billion at a PNB branch.

First Published: Wed, February 14 2018. 22:59 IST
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