General News

WATCH: For The First Time, Auditors Of Punjab National Bank (PNB) Reveal They Red Flagged Diamond Fraud; Trace Events That Led Up To Nirav Modi-PNB Scam Coming Out

Written By Ankit Prasad | Mumbai | Published:

Hack:

  • Republic TV has spoken to the auditors of Punjab National Bank (PNB) who have revealed that they had allegedly warned about fraud diamond tycoons as far back as 2011-12
  • The auditors cited the Winsome Diamond Group scam and also presented an explanation for why the Nirav Modi scam wasn't detected earlier

As part of the Alpha Files Investigation into the estimated Rs 25,000+ scam allegedly carried out by Nirav Modi and Mehul Choksi, Republic TV has spoken to the auditors of Punjab National Bank (PNB) who revealed that they had warned about frauds diamond tycoons undertake as far back as 2011-12.

The auditors cited companies owned by diamond czar and now-under-probe Jatin Mehta and presented a detailed account of the red flags they raised during the UPA tenure.

The revelations by the auditors prove that there was a strong precedent and warnings given to PNB Banks against irrational bloated loans to diamond tycoons during UPA-- a fact that probably was unexplainably hushed up given the unearthing of the Nirav-Choksi scam of 2018.

Speaking to Republic TV's Editor-in-Chief Arnab Goswami, the auditors BM Agarwal and Devang revealed that they had warned PNB about fraud diamond czars as far back as 2011-12 during the UPA regime.  The auditors, who had also probed the Harshad Mehta scam, disclosed that one of the Big-4 global auditing firms had probed the diamond trade fraud and come to an ‘inconclusive’ conclusion.

The auditors cited various events, including the Winsome Diamond Group scam involving the company's promoter Jatin Mehta, in which PNB was among the banks defrauded by an exposure of over Rs. 1,700 crores.

Here are the big takeaways from the disclosures made by the auditors of PNB:

  • The Auditors warned PNB strongly against giving mega loans to diamond czar Jatin Mehta who is now believed to be the second highest corporate defaulter in the country. The warning came as far back as 2011-2012.
  • The Auditors disclosed how one of the Big 4 auditors were brought in by PNB after Jatin Mehta claimed that his over Rs. 6,000 crore loan amount was lost due to 13 UAE based jewellery companies defaulting almost overnight.
  • The Auditors said that they had conveyed to the banks that Jatin Mehta’s business was fraudulent back in 2011-2012. However, the crackdown on Mehta’s firms allegedly came only consequently.

Watch the full revelations in the video above.

Earlier, the Alpha Files had expanded the scale, size and scope of the Mehul Choksi-Nirav Modi scam and how despite a court order, the Police in Karnataka went slow on Mehul Choksi. On Sunday, a former right-hand man of Mehul Choksi revealed the extent of the latter's fake diamond scam

DO NOT MISS