Nirav Modi Fraud Case: A Timeline And Other Highlights Of PNB Scam Involving Mehul Choksi

PNB Scam: While Nirav Modi denies allegations, Gitanjali's Mehul Choksi accuses investigating agencies of gross abuse of due process in ongoing probe

Nirav Modi Fraud Case: A Timeline And Other Highlights Of PNB Scam Involving Mehul Choksi

Punjab National Bank Fraud: CEO Sunil Mehta met SFIO officials in Mumbai


  • On March 6, CBI arrested a vice president of Gitanjali group
  • PNB appointed BDO India as forensic auditor for five Modi companies
  • Gold and diamond bribes were allegedly given to one PNB staffer
A Rs 12,600 crore fraud at India's second-biggest state-run lender Punjab National Bank has shaken the nation's financial sector, triggering a massive probe and regulatory changes. The CBI registered a fresh case against jeweller Nirav Modi on Thursday in connection with the alleged fraud in credit facilities extended by Punjab National Bank, causing a loss of Rs 321 crore to it.

The following is a timeline of how the case has unfolded:

March 8, 2018: Choksi accuses investigating agencies of gross abuse of due process in ongoing probe

March 7, 2018: PNB CEO Sunil Mehta meets SFIO officials in Mumbai

March 6, 2018: CBI arrests a vice president of Gitanjali group. Serious Fraud Investigation Office (SFIO) meets executives from Axis Bank, ICICI Bank over Modi, Choksi exposure

March 4, 2018: CBI makes four more arrests - two former employees of Modi's Firestar International, an auditor of Modi's group and a former director of one of Choksi's companies

March 3, 2018: Authorities say gold and diamond bribes given to one PNB staffer named in fraud. State-run lender Allahabad Bank says its exposure to the fraud is about $367 million

March 1, 2018: PNB appoints BDO India as forensic auditor for five group companies belonging to Modi. CBI arrests another former PNB internal auditor, Bishnubrata Mishra, who was responsible for audits at the branch between 2011 and 2015

February 28, 2018: CBI arrests former PNB auditor M.K. Sharma, who was responsible for auditing systems and practices of the bank's Brady House branch.

February 27, 2018: PNB says the amount of fraudulent transactions has gone up by about $204 million to $1.97 billion. Jeweller Modi's firm Firestar Diamond files for bankruptcy in the United States

February 24, 2018: Choksi writes an open letter to employees of Gitanjali Gems protesting innocence and telling them to look for other jobs. ED seizes 21 properties including a farmhouse, a solar power plant and land belonging to Modi worth 5.24 billion rupees

February 23, 2018: Auditor group Institute of Chartered Accountants of India begins probe into PNB fraud. RBI orders linking of SWIFT system with banks' core accounting software by April 30, among other measures, Feb. 20 letter to banks shows. Bollywood star Priyanka Chopra announces cutting ties with Nirav Modi's brand

February 22, 2018: ED seizes nine luxury cars belonging to Modi and his firms; freezes shares and mutual funds worth 78 million rupees held by Modi and 867.2 million rupees held by Choksi

February 21, 2018: CBI arrests PNB general manager Rajesh Jindal, who headed the bank's Brady House branch in Mumbai between August 2009 and May 2011. Jeweller Modi writes to his employees in India saying they should look for other jobs as he would not be able to pay them salaries after the seizure of his assets

February 20, 2018: PNB shares fall for fifth trading session, wiping off $1.9 billion in market capitalisation. Finance Minister Arun Jaitley slams oversight lapses, without directly referring to PNB case. Reserve Bank of India asks banks to implement measures to strengthen their oversight of the SWIFT interbank messaging platform. Jeweller Modi's lawyer denies wrongdoing by client; Modi writes to PNB saying his companies owe much less than the sums reported. Enforcement Directorate (ED) says investigating more than 100 shell companies allegedly used by Modi and Choksi to route funds. CBI arrests three officials from Modi's group, two from Gitanjali

February 19, 2018: CBI arrests three more PNB executives

February 17, 2018: CBI makes first arrests in the case, two PNB employees and an executive of Nirav Modi's group detained. State-run UCO Bank says it has about $412 million in exposure to fraudulent transactions carried out at PNB. Enforcement Directorate seizes a cumulative 56.74 billion rupees worth of diamonds, gold and jewellery from Nirav Modi's home and offices.

February 16, 2018: CBI files case against Choksi's Gitanjali Group, conducts searches at 20 of the jewellery retailers locations. PNB CEO tells analysts bank putting in place better checks and balances, hopes to recover within six months. Reserve Bank of India, the Indian central bank, says will take appropriate supervisory action State-run Union Bank Of India says it has exposure of about $300 million related to the PNB incident, while State Bank of India says its exposure is about $212 million

February 15, 2018: PNB Chief Executive Sunil Mehta holds news conference, says working with law enforcement agencies, regulators, other banks. CBI says Modi, Choksi left India before PNB filed complaint

February 14, 2018: PNB now discloses the amount involved in the fraud as $1.77 billion, adds other banks overseas advanced money to jewellers based on the fraudulent guarantees issued by its staff

February 5, 2018: Central Bureau of Investigation (CBI) says has launched a probe into the alleged scam. Bank tells stock exchange it is still investigating the extent of the fraud.

January 29, 2018: Punjab National Bank (PNB) files police complaint against jewellers Nirav Modi, Mehul Choksi and others, saying they had colluded with two of its staff to defraud the bank of Rs 281 crore ($43.16 million).


© Thomson Reuters 2018

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