PNB fraud: Nirav Modi firms availed loans from PNB’s Hong Kong, Dubai branches too: Report
As per the report, Nirav Modi group firms Firestar Diamond Ltd Hong Kong and Firestar Diamond FZE Dubai availed some credit score services from the Hong Kong and Dubai branches of Punjab Nationwide Financial institution (PNB) as effectively.
The sanctioned credit score services to each the businesses had been recalled quickly after investigation and linkage with the group which defrauded the financial institution of about Rs 14,000 crore.
“As per the investigation discovering there isn’t any reporting of any path of fraudulent transaction of different Nirav Modi Group accounts the place fraud has been detected or reported with these two accounts. As such, these two accounts will not be handled as fraud,” the report mentioned.
One other group agency, the US-based Firestar Diamond Inc filed for chapter beneath Chaper 11 within the New York Southern Chapter Court docket in final week of February quickly after the multi-crore fraud was unearthed by the financial institution.
PNB additionally joined the chapter proceedings because it apprehended main a part of the fraud cash was routed to the US-based agency.
The 162-page report alleged group of workers on the Brady Home department issued faux letters of enterprise over a number of years to assist diamantaire Nirav Modi and his uncle Mehul Choksi elevate billions of in international credit score, resulting in the nation’s biggest-ever financial institution fraud.
The report was introduced together with inside e-mails as a part of the proof to investigative companies.
The financial institution reported a lack of Rs 13,416.91 crore for the January-March interval as towards standalone revenue of Rs 261.90 crore within the fourth quarter of the previous fiscal, 2016-17.
With reference to provision made for the loss incurred on account of Nirav Modi fraud, the financial institution offered Rs 7,178 crore, 50 per cent of the overall quantity of Rs 14,356 crore within the fourth quarter of 2017-18. The remaining quantity might be coated within the three quarters of the present fiscal 12 months.
PNB paid Rs 6,586.11 crore to different banks to discharge its liabilities in the direction of Letters of Undertakings (LoUs) and Overseas Letters of Credit score (FLCs) issued fraudulently and in unauthorised method to sure abroad branches of Indian banks by way of the misuse of SWIFT system of the financial institution, which was then not built-in with CBS (Core Banking Answer).