Priyanka Chopra terminates contract with Nirav Modi

Marco Green
February 24, 2018

The country's second largest PSU bank has detected United States dollars 1.77 billion scam where billionaire jeweller Nirav Modi allegedly acquired fraudulent letters of undertaking (LoU) from its Brady House branch in Mumbai to secure overseas credit from other Indian lenders.

Chopra had appeared in a TV commercial for the brand along with Sidharth Malhotra.

The total seizure in the case now stands at Rs 5,826 crore, according to ED officials.

The cars included a Rolls Royce Ghost, two Mercedes Benz GL Class, one Porsche Panamera, three high-end Honda cars, Toyota Fortuner and one Toyota Innova. On the question regarding whereabouts of Nirav Modi, Ministry of External Affairs Spokesperson Raveesh Kumar said that the matter should be addressed to the law enforcement agencies. Choksi has not commented but his firm, Gitanjali Gems, has also denied involvement in the alleged fraud.

Breaking his silence over the Rs 11,400-crore fraud at India's second-biggest public sector lender Punjab National Bank (PNB), Prime Minister Narendra Modi on Friday said that his government will take stringent action against financial irregularities and not tolerate loot of public money.

All five PNB officials arrested so far were part of the forex department at the bank's Brady House branch at the time of the fraud, said officials, adding these employees, in collaboration with the staff and associates of the firms headed by Nirav Modi and Choksi, committed the crime for personal gains. Modi was summoned by the ED under the Prevention of Money Laundering Act (PMLA). However, should you have any concrete and implementable plan, do revert back,"A the mail said".

Highlighting the "situation of fear and injustice" created against him and the company, Choksi, in his letter issued by his advocate, Sanjay Abbott, suggested to employees that in view of the uncertainty looming over payment of dues, termination of office operations, and "unfair investigation", they begin scouting for alternate career options.

Separately, PNB said it has followed lawful avenues to recover its dues following the alleged swindling of funds in the fraud case.

However, she said the PNB fraud has highlighted the need for banks to review their internal controls and security. The bank also purchased some Buyers' Credit assets from Axis Bank extended against PNB LoU through risk participation.

Separately, on Thursday, responding to clarifications sought by the stock exchange, PNB in a regulatory filing said it had followed all "lawful avenues available" to recover its dues.

Other reports by Click Lancashire

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