PNB scam: Passports of Nirav Modi and Mehul Choksi revoked, reveal sources

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Modi, who had a chain of boutique stores from NY to Beijing, and his uncle Mehul Choksi are both accused of perpetrating the biggest loan fraud in Indian banking history and are both out of the country.

The Indian Express has quoted an official saying the agency "want (s) to see on what basis these loans were granted and whether these are still recoverable".

Sources reportedly said that a lot of these loan accounts are in the category of special mention account of second category, which means they are close to becoming NPAs (non-performing assets).

Finance Minister Arun Jaitley on Satuday criticised regulators, as well as bank managements and auditors, for their failure to detect bank frauds saying "politicians are accountable but regulators are not". The complaint alleged that they cheated the nationalised bank to the tune of Rs 11,400 crore, with the purported involvement of a few employees of the bank.The Central Bureau of Investigation (CBI) and the ED have registered two FIRs each to probe the case.

The government had moved the Mumbai bench of the National Company Law Tribunal (NCLT) to confiscate all 114 properties owned by beleaguered diamantaire Nirav Modi and his maternal uncle and partner Mehul Choksi on Friday.

Modi along with his wife Ami, brother Neeshal and Mehul Choksi left India in the first week of January before the PNB accused them of committing the fraud. These assets and their sources of income will be investigated and if necessary would be attached under the criminal sections of the Prevention of Money Laundering Act (PMLA) if it is found that they have been created using tainted funds or the proceeds of crime of the alleged bank fraud, the sources said.

In recent days, PNB has told Nirav Modi to come up with a concrete plan to return the Rs. 11,300 crore his companies have borrowed without following proper procedures.

Ananthasubramanian, who was earlier Managing Director and chief executive officer of PNB between August 2015 to May 2017, said the process of linking the SWIFT with core banking solutions was in progress at Allahabad Bank, and most other banks were also fast-tracking the process.

India's federal police have arrested some half a dozen bank officials, including the two junior Mumbai officials, as well as employees of companies controlled by Modi and Choksi. Rajesh Jindal was the head of the Brady House, Mumbai, from 2009 till 20011.