PNB scam: 107 companies, 7 LLPs under scanner, says MoS in LS
PNB scam: 107 companies, 7 LLPs under scanner, says MoS in LS



New Delhi [India], Mar. 17 (NT): As many as 107 companies and seven limited liability partnerships (LLPs) are under the scanner following the billion dollar scam exposed by Punjab National Bank (PNB).

In addition, inquiry of the select companies, as per the provisions of Section 212(1)(c) of the Companies Act, 2013 and Section 43(3)(c)(i) of Limited Liability Partnership Act, 2008, will be held by the Serious Fraud Investigation Office (SFIO), Minister of State (MoS) for Corporate and Law and Justice, P.P. Chaudhary, said in Lok Sabha on Friday.

The minister notably added that inquiry of these companies belonging to billionaire businessman Nirav Modi (Firestar Diamond group) and Mehul Choksi (Gitanjali Group) is ongoing.

For the unversed, PNB had detected a USD 1.77 billion fraud, wherein renowned jewellery designer and gem-seller Nirav Modi had acquired multiple letters of undertaking to gain overseas credit from a number of banks on February 14.

The billionaire businessman, who is the owner of Firestarter Diamond International Private Limited, and Choksi, his uncle, have been prime accused of defrauding PNB of Rs 12,600 crore, including Rs 1,300 crore being added to the fraud for pooling money on February 26.

On Thursday, the state-owned lender became aware of another fraud case at a Mumbai branch, which is at the centre of around Rs 9.9 crore frauds, according to a complaint with the police. (NT)



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