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Antigua agency’s statement nails Modi government’s lie: Congress

Antigua agency’s statement nails Modi government’s lie: Congress

Randeep Singh SurjewalaNew Delhi : The Congress on Friday said that “complicity and connivance” of the government in the escape of jeweller Mehul Choksi, an accused in the PNB fraud, has been “exposed” after the Antigua government came clear on granting citizenship to Choksi.

The party also demanded to know why Prime Minister Narendra Modi had not raised Choksi’s citizenship during a meeting with his Antiguan counterpart Gaston Browne in April this year.

“A press statement by the Citizenship by Investment Unit (CIU) of Antigua Barbuda reveals how the Ministry of External Affairs and agencies like SEBI (Securities and Exchange Board of India), Enforcement Directorate and CBI gave Choksi a clean chit,” Congress Spokesman Randeep Singh Surjewala said.

Choksi had applied for Antiguan citizenship and got it in November 2017. He left India on January 4 this year.

“A complaint dated May 7, 2015 was filed with the Ministry of Corporate Affairs by one Vaibhav Khuraniya and R.M. Green Solution Pvt Ltd. A copy was also sent to the Prime Minister’s Office, ED and Serious Fraud Investigation Office. A similar complaint was filed to Deputy Commissioner of Police, Mumbai,” Surjewala said.

“Another person named Digvijaysinh Jadeja lodged an FIR in Ahmedabad Economic Offences Wing, Gujarat, against Mehul Choksi and others for fleecing him. The matter went to Gujarat High Court, where the state government was a party. In a special criminal application, Jadeja filed an affidavit on July 20, 2016 specifically pointing out that Choksi and others owed Rs 9,872 crore to banks and are likely to escape from India,” he added.

He said a complaint dated July 26, 2016 was filed by one Hariprasad to PMO. On May 3, 2017, one Vaibhav Khuraniya also emailed the complaint to SEBI.

“Why did the MEA provide clean chit to Choksi in May 2017 despite the complaints and evidence being available two years earlier, that is, May 7, 2015, July 20, 2016 and May 3, 2017,” Surjewala asked.

“Why did the PMO not act despite the complaint dated May 7, 2015 and direct any investigating agency to take action? Does it not put a question mark on the role of the PMO?” he asked.

—IANS

ED seizes Nirav Modi valuables worth Rs 36 cr

ED seizes Nirav Modi valuables worth Rs 36 cr

Nirav ModiNew Delhi : The Enforcement Directorate (ED) on Saturday said it seized valuables worth over Rs 36 crore of absconding diamond jeweller Nirav Modi in connection with an ongoing probe into the Rs 14,500 crore Punjab National Bank (PNB) fraud case.

An ED official told IANS that joint searches with the CBI were carried from Thursday to early Saturday at Nirav Modi’s palatial ‘Samudra Mahal’ residence in Mumbai.

The items seized included Rs 10-crore diamond ring, antique jewellery worth Rs 15 crore, high-end watches valued at Rs 1.40 crore, Rs 10 crore-worth paintings by renowned artists including M.F. Hussain, K.K. Hebbar and Amrita Shergil.

The searches were conducted as part of a money trail by the ED and CBI after cases were registered against Nirav Modi and his business partner and uncle Mehul Choksi of the Gitanjali Group for defrauding the banks.

Choksi and Nirav Modi fled the country in January around a month before the PNB filed its first complaint against them. They are still at large.

So far, the ED has carried out searches at some 251 properties across the country and seized diamond, gold, pearls, precious and semi-precious stones.

The ED has also claimed to have attached immovable properties belonging to their business groups to the tune of Rs 7,638 crore.

—IANS

Choksi to CBI: Completely defenceless due to exaggerated allegations

Choksi to CBI: Completely defenceless due to exaggerated allegations

Diamond merchant Mehul Choksi

Diamond merchant Mehul Choksi

New Delhi : Diamond merchant Mehul Choksi, co-accused in the Rs 13,540 crore Punjab National Bank (PNB) fraud, has said that “exaggerated” allegations by multiple investigating agencies has left him “completely defenceless” and that he feared for his safety to return home.

In a two-page March 16-dated letter to the Central Bureau of Investigation (CBI), Choksi denied he was a partner of Diamond R US, Stellar Diamond and Solar Exports.

These firms have been accused of conducting fraudulent transactions with Firestar International and Firestar Diamond International owned his nephew Nirav Modi, who is also an accused in the PNB fraud.

The companies were named by the CBI in an additional FIR filed on February 14. Choksi was summoned to appear before the CBI on March 16 for questioning in the case.

Reiterating that it was “impossible” for him to return to India, Choksi said his health condition was not conducive and that his passport remained suspended.

“Till date, the Regional Passport Office (in Mumbai) hasn’t communicated with me and my passport remains suspended. I have the deepest respect for your offices and assure you that I am not making any excuse, whatsoever, to travel to India.

“I reiterate that I am abroad and have earlier also responded to your notices. Surprisingly, the issues raised remain unaddressed, making my fear of safety rise to extreme levels.”

He questioned the CBI move to name him in another case related to the bank fraud “knowing fully well that I have no concern whatsoever” with Diamond R US, Stellar Diamond, Solar Exports.

“I am neither a partner (of these firms) nor do I have any kind of association with the three concerns.”

He said various actions by multiple agencies taken against him and “the manner in which the allegations have been exaggerated has left me completely defenceless”.

“In any case”, he said, “I am extremely held up in my business abroad and am working hard to resolves the issues it is facing due to the unnecessary closure of business in India due to untenable allegation.” Choksi had left the country along with his nephew and other family members in January this year.

He said doctors had advised him “not travel for a period of four to six months”.

“I am unable to travel to India due to my persisting health condition. In February 2018, a cardiac procedure was conducted and medical follow ups still remain and as the entire procedure could not be completed. The situation still remains,” he said.

—IANS

PNB fraud fallout: 107 firms, 7 LLPs under SFIO scanner

PNB fraud fallout: 107 firms, 7 LLPs under SFIO scanner

Punjab National Bank (PNB)New Delhi : The government has ordered investigation to be carried out by the Serious Fraud Investigation Office (SFIO) into the affairs of 107 companies and seven limited liability partnerships (LLP) pertaining to multi-crore fraud in Punjab National Bank (PNB), Lok Sabha was informed on Friday.

“The government has ordered investigation into the affairs of 107 companies and 7 LLPs under the provisions of Section 212(1)(c) of the Companies Act, 2013 and Section 43(3)(c)(i) of Limited Liability Partnership Act, 2008 on 17.02.2018 belonging to Nirav Modi (Firestar Diamond group) and Mehul Chinubhai Choksi (Gitanjali Group) to be carried out by the Serious Fraud Investigation Office connected with Punjab National Bank Fraud wherein all matters in their entirety will be examined,” Minister of State for Corporate and Law & Justice, P.P. Chaudhary said.

The investigation is under progress, he informed.

On March 7, continuing the probe into the PNB fraud, sleuths of the SFIO questioned the bank’s Managing Director and CEO Sunil Mehta for five hours.

The SFIO had also summoned top executives of ICICI Bank and Axis Bank for questioning into this matter.

—IANS

PNB fraud should not halt corporate lending: Assocham

PNB fraud should not halt corporate lending: Assocham

Assocham Secretary General DS Rawat

Assocham Secretary General DS Rawat

New Delhi : The alleged Rs 11,300 crore fraud on state-run Punjab National Bank (PNB) committed by accused diamantaire Nirav Modi should not halt the entire system of corporate lending as demoralisation would set in among public sector bank (PSB) employees, industry body Assocham said on Sunday.

The country can “ill-afford” such fraud induced credit slowdown at a time when credit growth is showing signs of recovery and the economy set to grow at a higher pace, the Associated Chambers of Commerce and Industry of India (Assocham) said in a release here.

Noting the disturbing reports about banks clamping down certain impractical rules and procedures for trade finance, affecting both importers and exporters in the wake of the PNB scam, Assocham said the letters of credit (LOC) or letters of undertaking (LOU) allegedly misused by the diamond traders are legitimate instruments in global trade.

“While we may seek long-term solutions like privatisation of the banks, the need of this hour is to rally around honest bank officers and the honest business entities which have built trust on each other,” Assocham Secretary General D.S. Rawat said in a statement.

“Let one or a few black sheep not derail our financial system, which is resilient enough to withstand this kind of shocks, though ideally such jolts are better avoided and averted through systemic reforms,” he added.

According to Assocham, “letters of credit or letters of undertaking are an internationally accepted system of global trade.”

“While we need to ensure safe and sound functioning of the system and not allow loopholes like those in the PNB system of money or guarantee transfer, let banks not over-react and hit the trade and industry.”

Noting that Indian exports in January showed a deceleration in growth “even when the global economy is on the uptick”, Assocham said: “The pick up in the domestic economy would require higher imports. Thus, both imports and exports are key to our economy.”

“How else we encourage investment and jobs if we do not infuse confidence and trust in our financial system.

“By all means, punish the offenders at a fast speed and set examples; but the business should not be allowed to halt. There is a need for vigilance among all the lenders, even in the private sector,” the statement added.

Meanwhile Finance Minister Arun Jaitley has criticised regulators, as well as bank managements and auditors, for their failure to detect bank frauds saying “politicians are accountable but regulators are not”.

“We must always remember that regulators have a very important function. They ultimately decide the rules of the game and they have to have a third eye kept perpetually open and turned towards the sector. But unfortunately, in the Indian system, we politicians are accountable, the regulators are not,” Jaitley said on Saturday at the ET Global Business Summit here.

—IANS