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PNB fraud: CBI questions PNB officials along with Nirav Modi's employees

Nidhi Chugh
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PNB scam: Former MD Usha Ananthasubramanian was aware of fraud, says CBI

Former MD and CEO of the Punjab National Bank Usha Ananthasubramanian and some other senior bank officials were aware of the "fraudulent" dealings with diamond merchant Nirav Modi but kept "misleading" the RBI, the CBI has alleged in its charge sheet.

19:24 The Income Tax Department has attached 7 more properties of Gitanjali Group, out of which 4 are registered in the name of Gitanjali Gems, 2 properties belong to Mehul Choksi and 1 is registered in Gili India's name. All the attached properties are in Mumbai, sources in the department have said according to reports.

17:47 The CBI has said that 13 PNB officials, including the then GM level officers were questioned today along with four of Nirav Modi group's employees were also quizzed.

17:36 CBI sources have told News18 that 17 others are being questioned in connection to the scam.

17:13 An Enforcement Directorate (ED) official who wished not to be named has said that they are taking stock value at the time of seized assets.

'We have started valuation  of these (seized) assets... We hired liquidators for checking the value of these assets,' the ED official has said, adding that the first LoU was issued in March 2011 and has been issued every year since.

'We have asked audit report from 2011 and we have asked to RBI to submit statutory report,' the official has said.

The ED official has said that 39 raids are going as of now and total seized amount is worth Rs 5,716 and has said that auditors' report has been sought from the bank.

16:58 Nirav Modi helped high profile clients exchange unaccounted cash after demonetisation, says report

Sources say that Nirav Modi helped high profile clients exchange unaccounted cash worth Rs 90 crore on a single day after November 8, 2016.

Dubious sales were made to 5,200 persons on a single day after demonetisation. They had backdated sales vouchers to duck sales during that period, sources have told CNN-News18.

16:47 The ED has seized properties worth Rs 22 crore according to CNBC-TV18. ED has carried out searches in 39 more properties belonging to Nirav Modi and Mehul Choksi.

16:09  ED Director Karnal Singh rushes to Mumbai to take over the probe in the PNB fraud case, reports Moneycontrol's Tarun Sharma. ED is coordinating with the CBI on a daily basis for the future course of action in this case. The body may also issue a Letter of Rogatory issue to Hong Kong and other countries, where the money was diverted. They also feel that foreign firms, where the funds were diverted, may have been shell companies linked to Mehul Choksi's group.

11:47 The government doubts RBI's current fraud prevention framework and has asked RBI to check the efficiency Of the process and systems to detect fraud. The government has questioned the central bank as to why and how the PNB was not detected by their system. They also wrote to the RBI flagging doubts over supervisory lapses in the fraud case, sources told NewsRise.

11:00 Gitanjali Gems Company Secretary resigns, according to CNBC-TV18.

10:00 What is SWIFT technology and how is it connected to PNB fraud?

As the over Rs 11,000-crore Punjab National Bank fraud unfolds, the underlying technology that enabled the money transfer has been in the limelight.

Read our explainer here

09:30 CBI seals PNB's Brady House branch in Mumbai  where the fraudulent transactions took place.

09:15 Recap of the PNB fraud case

- Over Rs 11,400 crore was siphoned by using the LoU method. Bank officials and major diamond merchant Nirav Modi and his accomplices were involved in this case. The bank officials issued the letters to the concerned persons who approached them. The fraud started in 2010, and was detected in  25 January 2018, according to PNB's MD and CEO Sunil Mehta.

- ED is still conducting raids at Gitanjali stores across the country. Income Tax department is believed to have has frozen 32 accounts of Gitanjali and seized a building in Jaipur.

- MEA has suspended the validity of Nirav Modi and business partner Mehul Choksi's passports for four weeks. The authorities have also flagged the INTERPOL and issued a diffusion notice to the parties.

- CBI arrested three PNB officials - Gokulnath Shetty, Manoj Kharat and Hemant Bhat. They will be in police custody till March 3.

- CBI sources told Moneycontrol's Tarun Sharma that PNB and RBI officials are under the scanner.

- Nirav Modi, the man behind the scam, is believed to have been spotted in New York, according to reports. Reports also suggest that the family is involved in the scam.

- Sources told CNN-News18 that Congress will demand a joint parliamentary committee probe against the fraud case after discussing with opposition parties.