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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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PM Modi urges people to read Tirukkural on Thiruvalluvar Day

Prime Minister Narendra Modi on Thiruvalluvar Day appealed to people to read the Tirukkural, calling it a reflection of the humane and harmonious ideals of Tamil philosopher-poet Thiruvalluvar.

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Prime Minister Narendra Modi on Friday urged people across the country to read the Tirukkural, highlighting its enduring relevance and the intellectual legacy of Tamil philosopher-poet Thiruvalluvar.

Marking Thiruvalluvar Day, which coincides with the Pongal celebrations every year, the prime minister paid tribute to the revered scholar, describing him as a symbol of harmony, compassion and Tamil cultural excellence.

In a message shared on social media platform X, Modi said Thiruvalluvar’s works and ideals continue to inspire countless people even today. He noted that the philosopher envisioned a society rooted in compassion and balance.

The prime minister encouraged citizens to engage with the Tirukkural, a classical Tamil text that deals with various aspects of human life, ethics and governance, calling it a window into the profound intellect of Thiruvalluvar.

Thiruvalluvar Day is observed annually to honour the philosopher-poet, whose literary contributions remain central to Tamil culture and thought.

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BJP, Thackerays or Pawars: Maharashtra civic body poll results awaited today

Counting of votes for 29 municipal corporations in Maharashtra, including the key BMC and Pune civic bodies, begins today, with BJP, Thackerays and Pawars awaiting crucial results.

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The political balance in Maharashtra’s urban centres will become clearer today as votes are counted for elections to 29 municipal corporations across the state. The results are keenly awaited amid high-stakes contests involving the BJP, the Thackeray cousins and the reunited Pawar factions.

Polling was held for 2,869 seats across 893 wards, with 3.48 crore eligible voters deciding the fate of 15,931 candidates. Counting is scheduled to begin at 10 am.

Mumbai and Pune in sharp focus

All eyes are on Mumbai, where the contest for the Brihanmumbai Municipal Corporation (BMC) has drawn statewide attention. Shiv Sena (UBT) chief Uddhav Thackeray and Maharashtra Navnirman Sena chief Raj Thackeray joined hands after more than two decades in a bid to reclaim control of the country’s richest civic body.

The BMC, which has an annual budget of over Rs 74,400 crore, went to polls after a nine-year gap, following a four-year delay. A total of 1,700 candidates contested the 227 seats.

Exit polls suggest a strong performance by the BJP–Shiv Sena (Eknath Shinde faction) alliance in Mumbai. An aggregate of multiple surveys projects the ruling alliance ahead, with the Shiv Sena (UBT) and allies trailing, while the Congress is expected to secure a limited number of seats. Exit polls have also indicated possible voting consolidation among Maratha and Muslim voters behind the Thackeray-led alliance, while women and young voters may tilt towards the BJP.

The last BMC election in 2017 saw the undivided Shiv Sena retain control of the civic body it had dominated for decades.

In Pune, the spotlight is on the unusual alliance between rival NCP factions led by Ajit Pawar and Sharad Pawar. Exit polls indicate the BJP could emerge as the largest party in the Pune Municipal Corporation (PMC), with both NCP factions and the Shiv Sena also expected to secure a share of seats.

Statewide counting underway

Apart from Mumbai and Pune, counting will take place in several other key municipal corporations, including Thane, Navi Mumbai, Kalyan-Dombivli, Nagpur, Nashik, Pimpri-Chinchwad, Mira-Bhayandar, Vasai-Virar, Solapur, Kolhapur, Amravati, Akola, Jalgaon, Malegaon, Latur, Dhule, Jalna, Sangli-Miraj-Kupwad, Nanded-Waghala, Chandrapur, Parbhani, Panvel, Bhiwandi-Nizampur, Ulhasnagar, Ahilyanagar and Ichalkaranji.

With major parties treating these civic polls as a referendum on their urban appeal ahead of future state and national elections, today’s results are expected to shape Maharashtra’s political narrative in the months to come.

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Supreme Court flags risk of lawlessness, pauses FIRs against ED officers in Bengal case

The Supreme Court paused FIRs against ED officers in the Bengal I-PAC raid case, warning that obstruction of central probes could lead to lawlessness and seeking responses from the Centre and state.

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The Supreme Court on Wednesday delivered a sharp rebuke to the Mamata Banerjee-led West Bengal government, pausing FIRs lodged against officers of the Enforcement Directorate over searches linked to political consultancy I-PAC. The court said the case raises serious questions about interference in investigations and warned that failure to address them could lead to “lawlessness”.

A bench of Justice Prashant Mishra and Justice Vipul Pancholi sought replies from the Ministry of Home Affairs, the Department of Personnel and Training, Chief Minister Mamata Banerjee and the Trinamool Congress government on the ED’s plea. The central agency has also sought the suspension of Bengal Director General of Police Rajeev Kumar and Kolkata Police Commissioner Manoj Kumar Verma, and a probe by the CBI. The matter will be heard next on February 3.

The ruling follows a standoff between the ED and the Bengal government after the agency conducted searches at premises linked to I-PAC, which manages election campaigns for the Trinamool Congress, in connection with a corruption case.

Court questions obstruction of central probes

Recording its prima facie view, the Supreme Court said the petition raised a “serious issue” concerning investigations by central agencies and possible obstruction by state authorities.

“There are larger questions which emerge and if not answered shall lead to lawlessness. If central agencies are working bona fide to probe a serious offence, a question arises: Can they be obstructed by party activities?” the bench observed.

Earlier in the day, the court also expressed disturbance over scenes of chaos in the Calcutta High Court during a hearing related to the same dispute.

ED alleges interference, seeks action against top cops

The Enforcement Directorate accused the West Bengal administration of interfering with its searches and investigation. Appearing for the agency, Solicitor General Tushar Mehta alleged that evidence was removed from the residence of an I-PAC co-founder and argued that such actions could encourage state police officers to aid and abet obstruction. He sought suspension of senior police officials.

Describing the disruption in the Calcutta High Court on January 9, Mehta called it “mobocracy”, saying a group of lawyers unconnected to the case disrupted proceedings, forcing an adjournment. The bench asked whether the high court had been turned into a protest site, to which Mehta responded that messages had circulated calling lawyers to gather at a specific time.

Banerjee’s counsel defends move, cites election confidentiality

Senior advocate Kapil Sibal, appearing for Mamata Banerjee, questioned the timing of the ED’s presence in Bengal ahead of Assembly elections. He said the last development in the coal scam case dated back to February 2024 and argued that I-PAC handled election-related work under a formal contract with the Trinamool Congress.

According to Sibal, election data stored at the premises was confidential and critical to campaign strategy. He said the party leadership had a right to protect such information.

Representing the Bengal government and the DGP, senior advocate Abhishek Singhvi referred to the January 9 disruption but argued it could not justify parallel proceedings in different courts. The bench responded that emotions “cannot go out of hand repeatedly”.

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