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PNB fraud: ED expands probe; writes to 16 more banks

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PNB fraud: ED expands probe; writes to 16 more banks

If the ED finds out ‘bending of norms’ in cases of other banks, the quantum of losses to banks caused by Modi & Choksi will swell up to nearly Rs 20,000 crore

Expanding its probe in the Rs 11,400-crore Punjab National Bank (PNB) fraud against diamantaires Nirav Modi and Mehul Choksi, the Enforcement Directorate (ED) has now raised questions over the credibility about these public sector banks to keep the public money safe.

Reportedly, the ED has written to 16 banks, other than PNB, seeking information of all loans offered to the two businessmen – including present status of the loans, the form & nature of the loans, and collateral offered against these loans. According to sources, if  ED finds out ‘bending of norms’ in cases of other banks too, the quantum of alleged losses caused by them to banks will swell up to nearly Rs 20,000 crore.

Stating that ED Director Karnal Singh has written to the banks for details of the loans, an official said, “We are at present seeking information from banks which have given bigger loans. We have learnt that these loans have been granted at collaterals which are just 12 per cent of the total value of the loans. We want to see on what basis these loans were granted and whether these are still recoverable. However, we have not asked any bank to file a complaint with us.”

Sources have further stated that the CBI and ED probe into the case of fraud – which was perpetrated by Modi and Choksi on PNB – shows that more than two dozen banks may have been exposed to loans ranging between Rs 5,000 crore and Rs 10,000 crore.

While the two prime accused have left the country just before PNB lodged a complaint against them, both Modi and Choksi haven’t yet replied to any official summons – whereas the two defaulters are unlikely to be in a position to pay back the loans, with the authorities having attached their properties.

Earlier on February 16, seeking response within a week on to why their passports should not be impounded or revoked, the Ministry of External Affairs suspended the validity of Modi and Choksi’s passports with immediate effect for a period of four weeks.

According to sources, Mehul Choksi and his companies Geetanjali Gems, Gili India and Nakshatra Brand owed close to Rs 3,000 crore in the form of 37 bank loans till March 31, 2007. On the other hand, the total outstanding loans taken by Nirav Modi’s firms amounts to Rs 3000 crore from 17 banks – Central Bank of India (Rs 194 crore), Dena Bank (Rs 153.25 crore), Vijaya Bank (Rs 150.15 crore), Bank of India (Rs 127 crore), Syndicate Bank (Rs 125 crore), Oriental Bank of Commerce (Rs 120 crore), Union Bank of India (Rs 110 crore), IDBI Bank and Allahabad Bank (Rs 100 crore each).

A former Price Waterhouse Coopers auditor said, “It is perplexing how banks kept advancing loans on such low profits and without probing who these sundry debtors were. It is normal practice to check each and every sundry debtor, particularly in this case where the amounts were so huge, before advancing fresh loans.”

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DU VC Prof Yogesh Singh entrusted with additional charge of AICTE Chairman

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Prof. Yogesh Singh, Vice Chancellor of the University of Delhi, has been entrusted with the additional charge of the post of Chairman, AICTE till the appointment of a Chairman of AICTE or until further orders, whichever is earlier.

It is noteworthy that AICTE Chairman Prof. TG Sitharam was relieved of his duties after his term ended on December 20, 2025. According to a letter issued by the Ministry of Education, Government of India, on Monday, Prof. Yogesh Singh’s appointment is until the appointment of a regular AICTE Chairman or until further orders whichever is earlier.

Prof. Yogesh Singh is a renowned academician with excellent administrative capabilities, who has been the Vice-Chancellor of University of Delhi since October 2021. He has also served as the Chairperson of the National Council for Teacher Education. In August 2023, he was also given the additional charge of Director of the School of Planning and Architecture (SPA).

Prof. Yogesh Singh served as the Vice-Chancellor of Delhi Technological University from 2015 to 2021; Director of Netaji Subhas Institute of Technology, Delhi from 2014 to 2017, and before that, he was the Vice-Chancellor of Maharaja Sayajirao University, Baroda (Gujarat) from 2011 to 2014. He holds a Ph.D. in Computer Engineering from the National Institute of Technology, Kurukshetra. He has a distinguished track record in quality teaching, innovation, and research in the field of software engineering.

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Goa nightclub fire case: Court extends police custody of Luthra brothers by five days

A Goa court has extended the police custody of Saurabh and Gaurav Luthra, owners of the nightclub where a deadly fire killed 25 people, by five more days.

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Luthra brothers

A court in Goa on Monday extended the police custody of Saurabh Luthra and Gaurav Luthra, the owners of the Birch by Romeo Lane nightclub, by five more days in connection with the deadly fire incident that claimed 25 lives on December 6.

The order was passed as investigators sought additional time to question the two accused in the case linked to the blaze at the Anjuna-based nightclub.

Owners were deported after fleeing abroad

According to details placed before the court, the Luthra brothers had left the country following the incident and travelled to Thailand. They were subsequently deported and brought back to India on December 17, after which they were taken into police custody.

Advocate Vishnu Joshi, representing the families of the victims, confirmed that the court granted a five-day extension of police custody for both Saurabh and Gaurav Luthra.

Another co-owner sent to judicial custody

The court also remanded Ajay Gupta, another owner of the nightclub, to judicial custody. Police did not seek an extension of his custody, following which the court passed the order, the victims’ counsel said.

The Anjuna police have registered a case against the Luthra brothers for culpable homicide not amounting to murder along with other relevant offences related to the fire incident.

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Delhi High Court issues notice to Sonia Gandhi, Rahul Gandhi in National Herald case

Delhi High Court has sought responses from Sonia Gandhi and Rahul Gandhi on the ED’s plea challenging a trial court order in the National Herald case.

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The Delhi High Court has sought responses from Congress leaders Sonia Gandhi and Rahul Gandhi on a petition filed by the Enforcement Directorate (ED) in connection with the National Herald case. The petition challenges a trial court order that refused to take cognisance of the agency’s prosecution complaint.

Justice Ravinder Dudeja issued notices to the Gandhis and other accused on the main petition, as well as on the ED’s application seeking a stay on the trial court’s December 16 order. The high court has listed the matter for further hearing on March 12, 2026.

The trial court had ruled that taking cognisance of the ED’s complaint was “impermissible in law” because the investigation was not based on a registered First Information Report (FIR). It observed that the prosecution complaint under the Prevention of Money Laundering Act (PMLA) was not maintainable in the absence of an FIR for a scheduled offence.

According to the order, the ED’s probe originated from a private complaint rather than an FIR. The court further noted that since cognisance was declined on a legal question, it was not necessary to examine the merits of the allegations at that stage.

The trial court also referred to the complaint filed by BJP leader Subramanian Swamy and the summoning order issued in 2014, stating that despite these developments, the Central Bureau of Investigation (CBI) did not register an FIR in relation to the alleged scheduled offence.

The ED has accused Sonia Gandhi, Rahul Gandhi, late Congress leaders Motilal Vora and Oscar Fernandes, Suman Dubey, Sam Pitroda, and a private company, Young Indian, of conspiracy and money laundering. The agency has alleged that properties worth around Rs 2,000 crore belonging to Associated Journals Limited (AJL), which publishes the National Herald newspaper, were acquired through Young Indian.

The agency further claimed that Sonia and Rahul Gandhi held a majority 76 per cent shareholding in Young Indian, which allegedly took over AJL’s assets in exchange for a Rs 90 crore loan.

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