The Enforcement Directorate has written to 16 banks, apart from the Punjab National Bank, that gave loans to businessmen Nirav Modi and Mehul Choksi, The Indian Express reported on Sunday. The two, who are wanted in connection with the alleged Rs 11,380-crore PNB fraud case, may have caused losses worth Rs 20,000 crore in total, the newspaper quoted an unidentified official as saying.
“We are, at present, seeking information from banks that gave bigger loans,” an official said. “We learnt that these loans were granted at collaterals, which are just 12% 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.”
On Saturday, the agency had seized 21 of jewellery designer Nirav Modi’s properties, including a farmhouse and a penthouse, attaching his immovable assets for the first time.
The Central Bureau of Investigation on Saturday questioned Punjab National Bank’s Managing Director and Chief Executive Sunil Mehta and Executive Director KV Brahmaji Rao in Mumbai, Mint reported.
Three days earlier, the CBI questioned 10 more officials of the bank and arrested Rakesh Jindal, the general manager at the bank’s head office in South Mumbai’s Brady House between 2009 and 2011. The Letters of Undertaking that Modi allegedly used to carry out fraudulent transactions overseas were issued from Punjab National Bank’s Brady House branch.