Banks might take more than $3 billion struck from PNB scams

Billionaire jeweller Nirav Modi is at the centre of the Rs11,400 crore PNB fraud

No charges have yet been laid. The companies in India are being investigated on Friday, the CBI added.

The other two stood passively.

The three will be produced before the CBI special court in Mumbai later on Saturday.

The Sena said it would not allege that the diamond trader had plundered the country with the blessings of BJP leaders.

The officials at the branch were asked by CBI sleuths about the process of sending Swift messages - notifications sent by banks to transfer funds internationally, and the functioning of internal software of the bank, they said. Federal police say they both left India in early January and there whereabouts are unknown.

The latest case - which involves a sum considerably higher than the Vijay Mallya default of around Rs 9,000 crore - comes at a time when the Indian banking system is already grappling with swelling non-performing assets.

Indian broadcaster NDTV reported on Friday that Modi was staying at an apartment in New York's Manhattan. Bhatt's lawyer Yashwardhan Tiwari said that his client worked for Nirav Modi as an accountant and did as he was directed to by his employers.

Reports said ED and CBI are conducted searches at premises of Nirav Modi and his franchise Geetanjali Gems' showroom across India in connection with the scam.

The day for organizations and outlets possessed or banded together by the 46-year-old precious stone vendor, who fled the nation on 1 January, started with the Enforcement Directorate (ED) doing seeks at properties connected to him in Mumbai, Delhi and Gujarat and asserting to have seized gold and precious stone gems and valuable stones worth Rs 5,100 crore.

Nirav Modi, his brother Nishal, his wife and Mehul Choksi allegedly worked with bank officials to illegally obtain Letters of Undertaking, which were cashed overseas from different banks.

Jewellery traders fear that after this fraud, banks would be more cautious about lending to them, which would hurt their credit flow. He also said that the fraud was confined to only one branch and was not widespread.

The Congress, however, alleged that the government did nothing to stop "independent India's biggest bank fraud" despite being informed of it in July, 2016. Bhatt was subsequently summoned for questioning and after the interrogation, was placed under arrest, officials said.

The clarification by PNB also states: "Foreign bank branches namely Allahabad Bank, Hong Kong, Axis Bank, Hong Kong and other banks were requested to provide all communication with borrower and documents, if any held in their record to understand bonafide of the transactions".



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