[I. <<NiMo-Mehul's credits were short-term and cannot be categorised as NPA.***In just 69 days, between February 9 and May 2, 2017, PNB issued LoU/LCs worth over Rs 5,000 crore to NiMo-Mehul companies*** [emphasis added]. Multiple LoUs were issued on a single day from one financing bank branch. Going by banking norms, the magnitude and frequency of foreign currency credits in this came is just incredible.>>
(Excerpted from sl. no. I. below.) II. <<The CBI on Thursday registered a fresh FIR in the case against Mehul Choksi, maternal uncle of Nirav Modi, and his three companies claiming that they swindled PNB to the tune of ***Rs 4,886.72 crore in 2017-18*** [emphasis added] by way of getting 143 LoUs issued through the bank.>> (Excerpted from sl. no. II. below.) Here is a glimpse of one aspiring to be the "Chowkidar" of the nation, in the process rudely shoving aside his erstwhile mentor: < https://www.indiatoday.in/india/video/narendra-modi-bjp-jhansi-rally-prime-minister-vs-chowkidar-423931-2013-10-25 >. III. <<Over the past three years, the government-owned bank that is now in the dock for allegedly allowing rogue employees to game the system to benefit firms controlled by diamantaires Nirav Modi and Mehul Choksi bagged three vigilance excellence awards.>> (Excerpted from sl. no. III. below.) And, the Chowkidar's office had, reportedly, been alerted in July 2016: < https://timesofindia.indiatimes.com/india/didnt-get-response-from-ed-cbi-man-who-informed-pmo-about-nirav-modi-scam/articleshow/62934656.cms >. Also: <<“As per protocol, it is impossible for anyone to participate in a photo-op with the Prime Minister without previous clearance and sanction,” a former Secretary-rank diplomat said on the condition of anonymity. “The picture [dtd. Jan. 23] was arranged and there are other pictures, which shows the chairs were lined up for this group picture. These other pictures also show the Prime Minister shaking hands with the CEOs, which makes it an official function. Under no circumstances could this have been a coincidence.” A Press Trust of India report, issued by India’s largest press agency on January 14 states that the union finance minister, Arun Jaitley, was traveling to Davos for the WEF with a “100-strong Indian delegation” with prominent businessmen. Nirav Modi is named as one of them.>> (Source: < http://www.atimes.com/article/indian-pms-office-alerted-alleged-bank-scam-2016/?utm_source=The+Daily+Report&utm_campaign=95ceaac138-EMAIL_CAMPAIGN_2018_02_16&utm_medium=email&utm_term=0_1f8bca137f-95ceaac138-31512233 >.) And: <<According to media reports, celebrity jeweller Nirav Modi has been traced to his apartment in New York’s Manhattan. Sources have told NDTV that the billionaire who is wanted in connection with a Rs 11k crore Punjab National Bank Scam, is staying in a suite at JW Marriott’s Essex House, in the vicinity of his Madison Avenue jewellery retail store. MEA spokesperson Raveesh Kumar said that Ministry of External Affairs wasn’t aware about his location. He said: “I can say with confidence that this gentleman is not in touch with any of our officials & frankly at this stage we are not aware about his location. Process of his revocation of passport has begun. Today his passport was suspended. Now he will remain in the country where ever he is..he ll not be able to travel further. Also to clarify again. He was not part of official delegation.”>> (Source: < http://www.dnaindia.com/business/report-pnb-fraud-nirav-modi-in-new-york-says-report-mea-not-aware-about-his-location-2585363 >.) <<After billionaire diamantaire Nirav Modi, another defaulter Vikram Kothari, the promoter of Rotomac Pen, has also allegedly gone abroad after swindling Rs. 800 crore from various public sector banks including Allahabad Bank, Bank of India and Union Bank of India, sources said. The Kanpur-based company's owner had taken a loan of more than Rs. 800 crore from over five state-owned banks. Allahabad Bank, Bank of India, Bank of Baroda, Indian Overseas Bank and Union Bank of India compromised their rules to sanction loans to Rotomac, sources said.>> (Source: < https://www.ndtv.com/india-news/after-nirav-modi-rotomac-pens-rs-800-crore-defaulter-flees-country-1814218 >.) ***So: Jay Amit Shah, Rafale deal (by "Chowkidar" himself), Nirav Modi, Vikram Kothari ... Of course, Jay Shah is yet to flee. But not to forget Vijay Mallya fleeing and special favours to fugitive Lalit Modi. Forget about 15 lakh. Forget about the state-level scamsters.***] I/III. https://www.dailyo.in/business/pnb-fraud-nirav-modi-mehul-chokasi-bank-fraud-lou-letter-of-credit/story/1/22423.html The thousands of crore Nirav Modi-Mehul Choksi PNB scam is more recent than you think The heist appears a well planned quick swindle not a prolonged one. MONEY | 3-minute read | 18-02-2018 Anshuman TiwariANSHUMAN TIWARI @anshuman1tiwari A point that cannot be missed in the political slugfest between the BJP and Congress on mera ghotala vs tera ghotala (my scam versus your scam), is that the Nirav Modi-Mehul Chokasi scam, aka NiMo-Mehul scam, is turning out to be a highly well-executed and the most brazen financial fraud in recent history. The duo seems to have strategically chosen short-term inter-bank credit channels available to high-value gems and jewellery businesses and managed to swindle funds in foreign currency out of the global network of Indian public sectors banks. A close look at the CBI FIRs reveals that 293 letters of undertaking (LoU), many letters of credit (LC), were issued during March, April and May 2017. This is the reason why defaults came to light only by January 2018. That the scam took place before 2017 seems unlikely as NiMo-Mehul defrauded Punjab National Bank (PNB) through the use of buyer's credit - LoUs and LCs. The letters of credit issued to NiMo-Mehul firms (Firestar-Gitanjali) have to be paid back within 90-180, or a maximum 360 days ab initio. As per the Reserve Bank of India norms, any unserviced asset beyond 60-90 days of the due date of payment turns into a non-performing asset (NPA). NiMo-Mehul's credits were short-term and cannot be categorised as NPA. modi.jpeg690_021818082117.jpg The high frequency issuance of buyer's credit to NiMo-Chokasi may turn murkier if we consider that the scam goes beyond 2017 and defaults are already accounted in the PNB's NPA books. Now, let's understand the brazenness of this scam. In just 69 days, between February 9 and May 2, 2017, PNB issued LoU/LCs worth over Rs 5,000 crore to NiMo-Mehul companies. Multiple LoUs were issued on a single day from one financing bank branch. Going by banking norms, the magnitude and frequency of foreign currency credits in this came is just incredible. It appears that the NiMo-Mehul duo succeeded in executing a well-planned rip off. In contravention of RBI norms, the LoUs issued to NiMo-Mehul firms carry a credit limit extending beyond 90 days. They also availed buyer's credit for unusually long periods extending to 360 days. The Central Bureau of Investigation (CBI) has noted this point in its FIR. No PSU bank raised red flags on how NiNo-Mehul got multiple LCs within a single day, that too violating credit limit norms? It is important to note that the combined debt of NiMo-Mehul companies (Gitanjali and Firestar) stands at Rs 8,000 crore while their combined annual profit was less than Rs 650 crore in financial year 2016-17. It is difficult to believe how two indebted and suspicious companies managed such a big amount of short-term credit form a public sector bank. Going by the amount, frequency and number of LoUs handed out, the theory of manipulation of PNB's SWIFT (computer system) appears bunkum. LoUs of this magnitude in foreign currency dealings cannot be issued without the involvement of the top management of banks. The arrested deputy general manager of PNB is the junior-most officer in top commanding chain of the banking system. There are five officers above him to manage operations. Gitanjali Gems seems to be in the process of winding up. Enforcement Directorate raids post the scam found out that many of their stores were closed. Income tax raids recovered only Rs 80 lakh in the accounts of Gitanjali Gems, and Mehul Choksi. Deeper investigations may also reveal connections between NiMo-Mehul and tax havens because a lot of bank withdrawals have happened in countries unfamiliar with diamond business. Last but not the least, LoUs to the tune of Rs 6,000 crore are yet to come to light, if one goes by the oft-quoted scam amount of over Rs 11,000 crore. In all likelihood those too were issued during the last one year making it clear that NiMo and Mehul robbed Indian banks in just one year with great precision. II/III. http://indianexpress.com/article/india/pnb-11400-crore-scam-most-of-nirav-modis-fraud-lous-issued-or-renewed-in-2017-18-says-cbi-5067109/ PNB 11,400-crore scam: CBI says most of Nirav Modi’s fraud LoUs issued or renewed in 2017-18 Nirav Modi and kin were rolling over LoUs, so old ones were also renewed in 2017. The CBI on Thursday registered a fresh FIR in the case against Mehul Choksi, maternal uncle of Nirav Modi, and his three companies claiming that they swindled PNB to the tune of Rs 4,886.72 crore in 2017-18 Written by Deeptiman Tiwary | New Delhi | Updated: February 17, 2018 11:33 am Punjab national bank fraud case: FIRs against Nirav Modi, Gitanjali Group's Mehul Choksi ED officers at a Nirav Modi showroom in New Delhi, Thursday. (Express Photo: Tashi Tobgyal) AS the BJP and Congress blame each other for looking the other way while diamond czar Nirav Modi and his family allegedly defrauded the Punjab National Bank, the CBI has said that a majority of the Letters of Understanding (LoUs) in the Rs 11,400-crore scam were either issued or were renewed in the bank in 2017-18. The CBI on Thursday registered a fresh FIR in the case against Mehul Choksi, maternal uncle of Nirav Modi, and his three companies claiming that they swindled PNB to the tune of Rs 4,886.72 crore in 2017-18 by way of getting 143 LoUs issued through the bank. Notably, the first FIR in the case dealing with alleged swindling of Rs 280.7 crore through eight LoUs registered by the agency on January 31 also mentions that the LoUs were issued in 2017. To this FIR, CBI has now added new information provided by PNB on Wednesday and estimated the total loss in the first FIR at Rs 6,498 crore. The cumulative figure for the total loss to PNB thus stands close to Rs 11,400 crore. CBI sources said that since the accused — Modi and his relatives — were rolling over the LoU money by way of getting them renewed, many old LoUs too have been renewed in 2017.The CBI on Friday questioned four PNB officials in connection with the case. Notably, they are all being probed for their dealings with Modi and his companies between 2014 and 2017. These included Bechu B Tiwari, chief manager of the Bank’s Nariman Point Branch in Mumbai between February 2015 and October 2017; Sanjay Kumar Prasad, current DGM of the bank and then AGM of Brady House Branch between May 2016 and May 2017; Mohinder K Sharma, then concurrent auditor between November 2015 and July 2017 and Manoj Kharat, then Single Window Operator holding office between November 2014 and December 2017. Punjab national bank fraud case: FIRs against Nirav Modi, Gitanjali Group's Mehul Choksi Boxes of jewellery sealed by investigators line a display at a Nirav Modi showroom in Delhi The FIR registered on Thursday against Choksi says: “Accused Bank officials Gokulnath Shetty and Manoj Kharat in connivance with accused companies and directors during 2017-18 defrauded PNB to the tune of Rs 4886.72 crore in issuance of fraudulent and unauthorised LoUs in favour of foreign branches of different India-based banks and purported LCs (Letters of Credit) in favour of foreign suppliers of the accused companies.” The FIR names 16 accused which includes Choksi, his three companies Gitanjali Gems, Gili India and Nakshatra Brand; one managing director, 10 directors and two PNB officials apart from unknown people. It alleges that apart from getting 143 LoUs issued, Choksi also got 224 Foreign Letters of Credit (FLCs) through PNB. According to the FIR, Shetty and Kharat deliberately omitted making entries of LoUs issued on behalf of Choksi’s companies in the Core Banking System (CBS) of the bank to avoid detection. “Funds raised were meant to be used for payment of import bills of accused companies whereas it was dishonestly and fraudulently utilised for discharging the earlier liabilities on account of buyer’s credit facility by overseas branches of Indian banks,” the FIR said. The modus operandi regarding issue of FLCs (Foreign Letters of Credit), the FIR says, was that they were opened initially by entering smaller amounts in the CBS and sending FLCs through SWIFT messages. “The accused bank officials…unauthorisedly enhanced the value of FLCs manifold and issued amendments to said FLCs but did not enter the same in CBS,” the FIR said. In its complaint to CBI, PNB has raised questions on the conduct of officials in the foreign branches of various banks as well. It has said that according to RBI guidelines, LoUs for trade in jewellery and diamonds is issued only for a period of 90 days but PNB officials were issuing LoUs for a period of even six months to a year. This, PNB said, should have raised an alarm in the foreign branches. CBI on Friday conducted raids at 26 locations across six cities in five different states in connection with the PNB scam case. ED too has searched 35 locations across 11 states in connection with the case and seized jewellery and diamonds worth Rs 549 crore. The searches were conducted at locations connected to Modi and Choksi. All premises searched by CBI are connected to companies owned by Mehul Choksi. The companies include Gitanjali Gems, Gili India and Nakshatra Brand. CBI sources said these three companies have 36 subsidiaries in India and abroad. The agency has carried out searches at premises connected to 18 subsidiaries in India. Of these 17 are in Mumbai and one in Hyderabad. The searches were conducted in Maharashtra (Mumbai and Pune), Gujarat (Surat), Rajasthan (Jaipur), Telangana (Hyderabad) & Tamil Nadu (Coimbatore). Following the CBI FIR on Choksi, ED has also identified 29 immovable properties belonging to the accused. It has summoned Modi and Choksi to its Mumbai office on February 23. It has also got orders issued from Nirav Modi’s office that their subsidiaries and showrooms in Macau, Beijing, New York and London not make any further sales. Meanwhile, prosecution in the case of Nirav Modi has been filed under Income Tax Act for which hearing has been fixed on February 27. The Government said that the 105 bank accounts of Modi and his family and group concerns have been attached by the Income Tax department. The accused mentioned in the fresh FIR filed by CBI include Choksi (Managing Director Gitanjali Gems); Gokulnath Shetty (retired DGM of PNB); Manoj Kharat (then single window officer of PNB); and companies Gitanjali Gems Ltd , Gili India Ltd, Nakshatra Brand Ltd; directors of the companies Krishnan Sangameshwaran, Nazura Yash Ajaney, Dinesh Gopaldas Bhatia, Aniyath Shivraman Nair and Dhanesh Vrajlal Sheth, Jyoti Bharat Vora, Anil Umesh Haldipur, Chandrakant Kanu Karkare, Pankhuri Abhijeet Warange, Mihir Bhaskar Joshi and unidentified bank officials. III. http://indianexpress.com/article/india/nirav-modi-fraud-case-the-irony-in-three-years-pnb-won-three-awards-for-vigilance-5069213/ The irony: In three years, PNB won three awards for vigilance Nirav Modi case: Two of these awards came in 2017 — the year PNB issued 293 LoUs to companies owned by Modi and his family — and were given out by Central Vigilance Commissioner (CVC) KV Chowdary. Written by Deeptiman Tiwary | New Delhi | Updated: February 19, 2018 6:37 am The irony: In three years, PNB won three awards for vigilance Over the past three years, PNB, that is now in the dock for allegedly allowing rogue employees to game the system to benefit firms controlled by diamantaires Nirav Modi and Mehul Choksi, bagged three vigilance excellence awards. Even as Punjab National Bank was being defrauded of thousands of crores — allegedly Rs 11,400 crore over seven long years — it was winning awards for excellence in banking vigilance. Over the past three years, the government-owned bank that is now in the dock for allegedly allowing rogue employees to game the system to benefit firms controlled by diamantaires Nirav Modi and Mehul Choksi bagged three vigilance excellence awards. Two of these awards came in 2017 — the year PNB issued 293 LoUs to companies owned by Modi and his family — and were given out by Central Vigilance Commissioner (CVC) KV Chowdary. In the second week of March last year, PNB’s Chief Vigilance Officer S K Nagpal received a “Corporate Vigilance Excellence Award” from the hands of Chowdary at a “Vigilance Conclave” organised by the Institute of Public Enterprise (IPE), an MBA institute on campus at Osmania University, Hyderabad. Chowdary was the key speaker at the event, the eighth of its kind organised by the institute. Towards the end of October 2017, the Central Vigilance Commission had organised a Vigilance Awareness Week in New Delhi, where it gave away awards to various PSUs for their anti-corruption work, carried out in adherence to guidelines laid down by the Commission and the Reserve Bank of India. According to the Commission’s website, PNB bagged the Vigilance Excellence Award for “‘Outstanding’ Achievement in ‘Timely Completion of Disciplinary Proceedings’”. CVC Chowdary presented the award to Nagpal “for completing 92% of the total disciplinary proceedings within the prescribed timelines”. The irony: In three years, PNB won three awards for vigilance The vigilance award given to PNB by IPE, Hyderabad. (Source: PNB website) On the Hyderabad award, Chowdary told The Indian Express,”They organise this annual event where 10-12 PSUs participate. I was called there as a speaker. After my speech, they requested me to distribute some certificates, which I did. PNB and some other PSUs also won some certificates. The institute’s management selects winners based on some parameters set by them.” On the Commission’s own award, the CVC said, “CVC gives awards annually based on various categories of work. PNB was awarded for bringing down departmental proceedings. See, if you do well in English, you will get good marks. But that won’t take you through Hindi as well.” The CVC has summoned the PNB brass on Monday to answer questions on lapses by the bank’s employees in connection with the alleged Nirav Modi scam. Chowdary is likely to take stock of where the bank erred in allowing the fraud to pass undetected for years. The irony: In three years, PNB won three awards for vigilance The Punjab National Bank (PNB) branch where fraudulent transactions were detected. (Express Photo: Ganesh Shirsekar) The PNB website says the bank won the IPE vigilance award in 2014-15 as well, for “improved handling of complaints, institution of whistleblowing system, quick disposal of vigilance cases, reduction in outstanding vigilance cases, pruning down of vigilance cases of more than one year etc”. The citation said PNB had taken various “preventive/anti-corruption measures”, apart from steps such as “job rotation in LODI list/Agreed list to non-sensitive assignments, measures of predictive/corrective vigilance, introduction of vigilance audit system, introduction of new Risk Based Staff Accountability Policy etc”. It noted that the work of the vigilance department had saved the bank over Rs 45 crore, and congratulated its then CVO Siva Kumar Gupta. A senior PNB official said, “Vigilance awards are given based on overall performance. But in any large organisation there can be a few crooks. This LoU fraud was done by a couple of people in one branch in an organisation of 70,000 employees with 7,000 bank branches. This does not indicate deterioration in the vigilance standards. However, I agree that there was a failure of the bank’s internal control systems in not detecting the fraud early on.” A questionnaire emailed to IPE director R K Mishra did not elicit a response. -- Peace Is Doable -- You received this message because you are subscribed to the Google Groups "Green Youth Movement" group. To unsubscribe from this group and stop receiving emails from it, send an email to [email protected]. To post to this group, send an email to [email protected]. 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