Major jewellers Gitanjali, Ginni and Nakshatra have also come under the scanner of various investigating agencies following Punjab National Bank’s (PNB) declaration of Rs 11,400 crore fraud, committed allegedly by Nirav Modi.
PNB disclosed on Wednesday morning that it has detected some fraudulent transactions with financial implication of $1.77 billion (about Rs 11,346 crore) and the matter has been referred to law enforcement agencies for the recovery.
“Four big jewellers — Gitanjali, Ginni, Nakshatra and Nirav Modi — are under scanner. The CBI and Enforcement Directorate is looking at their arrangements with various banks and end use of money,” said a senior official of a public sector bank. No immediate comments were available from these companies.
There is strict instruction from the Finance Ministry to all banks that no big fish should go scot free and no honest borrower is harassed, the official said.
Banks are now looking at their systems and processes so that such frauds are not repeated, the official said.
All banks have been asked to present a status report as soon as possible, he added.
In 2015, Bank of Baroda — another public sector bank — had brought to light a scam in which two Delhi businessmen cheated it of Rs 6,000 crore which was slightly less than $1 billion at that time.
PNB said in a statement that fraudulent transactions took place in one of its branches in Mumbai for the benefit of a few select account holders with their apparent connivance.
Based on these transactions, done by his brother Nishal, wife Ami and Mehul Chinubhai Choksi, other banks appear to have advanced money to these customers abroad.
All this was being carried out in connivance with officials as high as Deputy General Manager since 2011.
The CBI has received two complaints from the PNB against billionaire diamantaire Nirav Modi and a jewellery company alleging fraudulent transactions.