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:
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.