PNB fraud: RBI conducts risk-based supervision on annual basis, says bank; other details

Punjab National Bank today said RBI conducts risk-based supervision of the bank on an annual basis, denying reports that RBI has not conducted any audit at it's Brady House branch in Mumbai. Issuing a statement, the PNB said, "It may be clarified that RBI does risk-based supervision of the bank on an annual basis." 

The bank has reportedly been scammed to the tune of Rs 12,700 crore by diamantaire Nirav Modi and his uncle Mehul Choksi. Both the diamantaire are alleged to have colluded with officers of the branch to fraudulently obtain guarantees for availing loans from overseas branches of Indian banks.

ED attaches Rs 1,217 cr assets of Mehul Choksi group

The Enforcement Directorate (ED) said that it has attached 41 properties, valued at over Rs 1,200 crore, in connection with its money laundering probe in the PNB scam against Gitanjali Gems and its promoter Mehul Choksi.

The central probe agency issued a provisional order for attachment under the Prevention of Money Laundering Act (PMLA).

The attached assets include 15 flats and 17 office premises in Mumbai, a mall in Kolkata, a four-acre farm house in Alibaug and 231 acres of land at locations like Nasik, Nagpur, Panvel and Villupuram in Tamil Nadu. 

A 170-acre park in Hyderabad's Ranga Reddy district valued at over Rs 500 crore has also been attached, it said.

Four flats in Borivali (east) area of the Maharashtra capital and nine others in Khemu Towers in Santacruz (east) have been attached as part of the action."The total value of the 41 seized assets controlled by Choksi is estimated at Rs 1,217.2 crore," the ED said.

The CBI and the ED have registered two FIRs each to probe the case. Both Choksi and Modi are said to have left the country before criminal cases were lodged against them. They have, however, denied any wrongdoing.

CBI arrests PNB auditor 

Meanwhile, the CBI has arrested an internal chief auditor of Punjab National Bank (PNB) in its ongoing probe into Rs 12,600 crore bank fraud case. 

"CBI has on Wednesday arrested an Internal Chief Auditor of Punjab National Bank in an ongoing investigation of the cases related to Nirav Modi group and Gitanjali group," a CBI official said, adding that the arrested auditor has been identified as MK Sharma, Chief Manager rank of PNB.

Sharma was allegedly responsible for auditing the systems and practices of PNB, Brady House Branch in Mumbai and report the deficiencies to Zonal Audit Office.

The CBI official also said that Sharma would be produced in a court in Mumbai on Thursday, said an IANS report.

(With inputs from agencies)