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Updated March 7th, 2018 at 12:32 IST

Nirav Modi-PNB Bank fraud: Retired top bankers of RBI, PSU banks & private banks to be quizzed by SFIO

In a big step resulting from the Nirav Modi-Mehul Choksi PNB Bank fraud as well as other such frauds that have come to light since, the SFIO has decided to quiz all RBI, PSU bank and private bank managing directors, governors and chairpersons who retired between 2011 and 2017

Reported by: Ankit Prasad
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In a big step resulting from the inquest into the Nirav Modi-Mehul Choksi PNB Bank fraud as well as other such frauds that have come to light since, the Serious Fraud Investigation Office (SFIO) has decided to quiz all RBI, PSU bank and private bank managing directors, governors and chairpersons who retired between 2011 and 2017.

This entails that a questionnaire will be sent to all the individuals who had held these positions it’s up to them to be present in person or send their reply via an emissary. The move's announcement comes at a time when Punjab National Bank's MD Sunil Mehta is being questioned by the SFIO in Mumbai. 

On Tuesday, top private sector banking officials, including Axis Bank MD Shikha Sharma and ICICI Bank head Chanda Kocchar were also asked by the SFIO about loan processes and internal procedures, and also to provide information about the conditions and circumstances under which loans were given to Gitanjali group. In this case too the bankers' personal presence wasn't mandatory. A consortium of 31 banks had given a loan of over Rs 5000 Crore to Gitanjali group and Companies. Among these banks, ICICI and Axis gave a loan of more than Rs 500 Crore

 The SFIO keeps a tab on banks, companies for their financial transactions. It also keeps a tab on tax evasion and money laundering and alerts investigating agencies like Central Bureau of Investigation and Enforcement Directorate, if need be.

Meanwhile, CBI has detained Vipul Chitalia, vice president (banking operations), Gitanjali Group as well as other officials affiliated with Mehul Choksi and Nirav Modi's companies in connection with the PNB fraud. The fraud saw Rs. 12,700 crore of loans being doled out to Nirav Modi's companies by overseas branches of a number of Indian banks based on Letters of Undertakings (LoUs) that were wrongfully issued by PNB. Republic TV's Alpha Files investigation into Nirav Modi and Mehul Choksi's business dealings had shown that the fraud is even larger than the LoU aspect.

 

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Published March 7th, 2018 at 12:32 IST

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