PNB fraud: Income-Tax dept attaches 7 properties of Mehul Choksi, Gitanjali group in Mumbai; CVC steps in

The Income Tax department on Monday attaches seven properties of Mehul Choksi and Gitanjali group in Mumbai in connection with Rs 11,400 cr fraud at the Punjab National Bank (PNB). 

State-owned PNB has been rocked by the fraud involving Nirav Modi who allegedly acquired fraudulent Letters of Undertaking (LoUs) from a branch in Mumbai to secure overseas credit from other Indian lenders. 

According to sources, the department has attached seven properties out of which four properties are registered in the name of Gitanjali Gems and two properties belongs to Mehul Choksi and one property registered in Gili India's name.

Two days ago, the tax department had attached nine bank accounts of Gitanjali Gems and Mehul Choksi and others.

The CBI has registered two FIRs — one on January 31 and another a few days ago — against Modi, his relative Mehul Choksi of Gitanjali Gems and others for allegedly defrauding PNB of about Rs 11,400 crore.

A team of the Central Bureau of Investigation (CBI) continued its searches at the Brady House branch of the scam-hit Punjab National Bank in south Mumbai.

Earlier in the day, Central Vigilance Commissioner K V Chowdary met senior officials of Punjab and National Bank (PNB) and the Finance Ministry in connection with the Rs 11,400 crore fraud case, allegedly involving billionaire Nirav Modi and others, being probed by the CBI.

The banks officials are understood to have shared with the Central Vigilance Commission (CVC) the details of the action taken by them to deal with the fraud, official sources said.

They also shared details of the action taken by the management against the officials found allegedly involved in it

The CVC has asked PNB and Finance Ministry officials to submit the report on how the scam took place despite monetary regulations being in place. They have been given 10 days to the bank to submitthe report, ANI news reported.

Raids conducted by Enforcement directorate

► ED conducted raids at over 50 locations across 20 cities in connection with the PNB fraud.

► The Enforcement Directorate visited the residence of former Allahabad Bank director Dinesh Dubey. Dubey had alleged that the bank had granted a loan to Gitanjali Gems in 2013 despite his dissent. 

► In Bihar, ED searches on at 3 places. Two in Muzaffarpur and one in Kishanganj district (franchise shops of Gitanjali). The agency recovered jewellery worth Rs 1.5 crore. "The value is likely to go up as searches are still on and may continue till late night," said ED official. They have already recovered around Rs 3 crore in Bihar till yesterday in this case.

► Raids are being conducted in Lucknow, Noida, Ghaziabad, and at Gitanjali and Nakshatra showroom in Muzaffarpur. 

► In West Bengal, six locations of Gitanjali and Nakshatra jewellery outlets were being searched in Kolkata.   

► A petition has been filed in the Supreme Court on Monday demanding a Special Investigation Team (SIT) probe in the ongoing Punjab National Bank (PNB) fraud.