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Diamond merchant Nirav Modi’s $1.8 bn scam on PNB will leave the banking sector in disarray

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Diamond merchant Nirav Modi’s $1.8 bn scam on PNB will leave the banking sector in disarray

Even as another multi-billion dollar shady deal within the Indian banking sector comes to light through the Rs 11,292 crore ($1.8 billion) scam by diamond merchant Nirav Modi, political parties have started the blame game, and it is most likely that the suspension of ten employees of Punjab National Bank apart, no other person will be tainted.

Modi himself, quite like liquor baron Vijay Mallya and alleged IPL scam master Lalit Modi, has left the country with his entire family and it’s not sure as of now if India even has an extradition treaty with whichever country he is in. The bankers, of course, will remain untouchable, despite having disbursed public money to scamsters.

Technically, the bank could have stopped payment – these were actually short term loans, called buyer’s credit – at any time on the ‘letters of undertaking’ (LoUs) that it and Modi had signed, allowing Modi to pick up raw diamond from sellers abroad.  These LoUs were signed by PNB and three diamond firms belonging to the Modi Group and some other firms owned by Gitanjali Gems. These companies had opened current accounts at a domestic branch of PNB and,as per the LoUs, money would have been paid by the bank to overseas sellers in foreign currency. This is a common practice, but it would unwise to believe that the bank never did an audit of the money paid and the reimbursements thereafter. That it was a collusion with the clear purpose of a scam is clear.

It is also inconceivable that only ten people (those suspended) were in the know of things, when even the foreign sellers (who sold the raw diamonds to Modi’s firms) held accounts at foreign branches of Indian banks.

The idea of the scam, as disclosed, was that a junior official at PNB fraudulently issued ‘letters of undertaking’, allowing Modi’s companies to get those short term loans from overseas bank branches. Expectedly, the PNB was the guarantor of these loans. A huge number of LoUs would have been done for the amount to reach such gargantuan levels, and in the age of total computerisation of transactions, the bank wants the public to believe that this was the secret work of a select few.

The initial complaint against Modi (in January) was for a Rs 280 crore fraud. Then the bank went to the CBI with the humongous complaint. That was in January 29, by which time Modi had fled the country with his entire family. While Rs 282 crore, in an age of huge scams, did not raise the red flag, the bigger one did. But by that time it was too late to nab Modi.

It has been reported in the media, which have quoted government sources sa saying that Modi and his family fled the country in the first week of January much before the CBI received a complaint from PNB.

It has also been reported that Modi has allegedly sought six months time from PNB to repay the loan.

On 15 February, ED raided nine premises of entities involved in the case.

Leave alone Modi till one can find him. But the bank, like all other banks in such scams, will have a lot of answering to do. This is especially so, because while the BJP says that the Congress should answer because it all started in 2011, the Congress says how come the BJP had no inkling of such a huge scam?

—India Legal Bureau

India News

Veeramani POCSO case: Vijay questions Stalin over earlier probe

Tamil Nadu Chief Minister Vijay has questioned MK Stalin over the handling of the Veeramani POCSO case, while Stalin has rejected allegations that the previous DMK government protected anyone.

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Actor Vijay

Tamil Nadu Chief Minister and Tamilaga Vettri Kazhagam (TVK) president C Joseph Vijay has questioned DMK president MK Stalin over the handling of the POCSO case involving Gem Granites founder R Veeramani. The political exchange follows renewed investigation into allegations involving minor girls.

Vijay’s remarks came as the ruling TVK stepped up its questions about how the case was handled during the previous DMK government. The party’s IT wing has alleged that the earlier investigation was weakened and questioned why a final report was filed.

The allegations have been rejected by the DMK. Stalin has said that no order was issued by the DMK government to protect anyone in the case and has called the allegations false and defamatory.

What did Vijay say about the Veeramani case?

Vijay questioned Stalin over the handling of the case and demanded an explanation from the former chief minister.

The TVK has specifically questioned why action was not taken against Veeramani during the previous administration and why the earlier investigation resulted in a closure report.

The party has also raised questions about the role of officials involved in the earlier investigation. These are political allegations made by the TVK and have not been established as facts.

What is the Veeramani POCSO case?

The case concerns allegations of sexual abuse of minors involving R Veeramani, the founder of Gem Granites.

The case came under renewed scrutiny after a special POCSO court rejected an earlier closure report and ordered further investigation. The expanded probe has subsequently identified additional alleged survivors who were minors at the time of the alleged offences, according to current reporting.

The investigation is also examining the circumstances surrounding the earlier probe and whether there were any lapses in how the case was handled.

What has MK Stalin said?

Stalin has rejected allegations that the previous DMK government protected Veeramani.

He has said that no order was issued by the DMK government to shield anyone in the case. Stalin has also said that everyone responsible for the alleged offences, including anyone who aided or attempted to protect the accused, should face the law.

The DMK president has further said that the focus should remain on securing justice for the affected girls rather than making political allegations.

Why has the case become a political issue?

The Veeramani case has become the subject of a political dispute between the ruling TVK and the DMK over the handling of the earlier investigation.

The TVK is questioning the previous government’s handling of the case, while the DMK has denied that it intervened to protect the accused.

At this stage, claims about political interference or deliberate weakening of the earlier investigation should be treated as allegations unless established by the ongoing investigation or judicial proceedings.

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Women wrestlers challenge Brij Bhushan’s acquittal in sexual harassment case

Four women wrestlers have challenged the acquittal of former WFI chief Brij Bhushan Sharan Singh and co-accused Vinod Tomar in a sexual harassment case.

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Brij Bhushan Sharan Singh

Four women wrestlers have approached a Delhi court challenging the acquittal of former Wrestling Federation of India (WFI) chief and BJP leader Brij Bhushan Sharan Singh in a sexual harassment case.

The wrestlers have also challenged the acquittal of co-accused Vinod Tomar. The matter is scheduled to be heard by a Special Judge at the Rouse Avenue Courts.

The appeal challenges the order passed by an Additional Chief Judicial Magistrate on August 3, 2026, when Brij Bhushan and Tomar were acquitted in the case.

Wrestlers challenge court’s reasoning

In their appeal, the wrestlers have argued that the acquittal order is legally unsustainable and that the evidence was not assessed appropriately.

They have also alleged that the order relied on assumptions about how victims of sexual assault and harassment were expected to behave instead of assessing the evidence and circumstances of the complainants.

The challenge seeks judicial scrutiny of the findings that resulted in the acquittal of Brij Bhushan and Tomar.

Brij Bhushan was acquitted in August

The Rouse Avenue court acquitted Brij Bhushan Sharan Singh on August 3 in the sexual harassment case involving women wrestlers. The court’s decision followed consideration of the evidence and statements presented during the proceedings.

The case had emerged after several women wrestlers accused the former WFI chief of sexual harassment. The allegations had led to a major protest by wrestlers in 2023.

The latest appeal means the acquittal is now being challenged before a higher court.

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Congress protests against Gyanesh Kumar, demands Election chief’s resignation

Congress workers took to the streets against Chief Election Commissioner Gyanesh Kumar, with protests and demonstrations held over the party’s allegations concerning the Election Commission.

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Congress stepped up its campaign against Chief Election Commissioner Gyanesh Kumar, with party workers taking to the streets and demanding his resignation amid the ongoing row over the Election Commission.

The protests followed repeated criticism by Congress leaders of the poll panel and its functioning. The party has alleged irregularities in the electoral process and has sought accountability from the Election Commission.

Congress leaders have also targeted Gyanesh Kumar personally, with Rahul Gandhi among those calling for the Chief Election Commissioner to step down.

Congress takes protest to streets

Congress workers staged demonstrations in different places as part of the party’s campaign against the Election Commission.

The protests featured sharp symbolism, including masks and handcuffs, as Congress sought to highlight its allegations against the poll panel and demand action against Gyanesh Kumar.

The demonstrations are part of a wider confrontation between the Congress and the Election Commission over issues related to electoral rolls and the conduct of elections.

Congress demands Gyanesh Kumar’s resignation

The Congress has repeatedly demanded the resignation of Gyanesh Kumar, accusing the Election Commission of failing to adequately address the concerns raised by the opposition party.

Rahul Gandhi has also stepped up his criticism of the poll panel. In a statement on Thursday, he demanded that Gyanesh Kumar resign and alleged that the Election Commission had acknowledged the issue of “vote theft”. These are allegations made by the Congress and should not be treated as an established finding unless confirmed by the relevant authority.

The dispute comes amid a broader political debate over electoral rolls, voter verification and the functioning of the Election Commission.

Election Commission under opposition scrutiny

The Congress has intensified its campaign against the poll body in recent weeks, with party leaders repeatedly questioning its decisions and procedures.

The Election Commission, meanwhile, has maintained that India’s electoral process is conducted according to the Constitution, electoral laws and prescribed procedures. Chief Election Commissioner Gyanesh Kumar has previously defended the integrity of the electoral system and rejected claims that electronic voting machines can be remotely hacked.

The latest protests add to the continuing political confrontation over the Election Commission and the opposition’s demands concerning the poll panel’s functioning.

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