PNB fraud: CBI arrests auditor at bank as fraud investigation widens

PNB Scam: ED Attaches 41 Properties Worth Rs. 1217 Crore Connected To Mehul Choksi

PNB market cap slides 40% in 10 sessions

Nirav Modi also fled the country to avoid investigation into the Rs 11, 400 crore PNB scam.

An Income Tax department official said the Blue Corner notice, which is meant to locate, identify or obtain information on a person of interest in a criminal investigation, was issued by the Bureau of Immigration against the two which will be valid for a year starting 22 February at all ports of embarkation.

Modi, founder of Firestar Diamond, and his uncle Mehul Choksi, who owns Gitanjali Gems Ltd, are suspected of colluding with two employees from Punjab National Bank in the fraud. Nirav responded to the email saying, "I have business to run here".

To date, 12 persons have been arrested by the CBI in connection with the case. Investigators have also seized a number of properties from the two, including jewellery and luxury cars.

It has also told secured lenders it was in discussions with lenders for debtor-in-possession financing as it weighed options.

According to media reports, he is now in NY.

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Firestar Diamond was formed as a DE corporation in 2004 under the name Jewelry Solutions International.

Modi is said to have defrauded Punjab National Bank, India's second largest state-run bank, of 1.8 billion dollars, though he has said that he owed the bank only 775 million USA dollars, in a letter shot to the bank's management.

Nirav Modi has refused to join the CBI investigation in the United States dollars 2 billion fraud in Punjab National Bank citing his business engagements, prompting the agency to issue a stern letter today asking him to appear before it next week.

On Thursday the ministry said the public sector banks would consolidate 35 overseas operations, with another 69 being considered for consolidation.

The premises is believed to be that of Nirav Modi (not in name of the company).

"Sixty-nine operations identified for further examination", he added, without naming the banks or the affected operations.

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