"A series of meetings were held with representatives of Nirav Modi group and Gitanjali Group at Delhi & Mumbai to impress upon them to pay the amount. They were also directed to provide all necessary documents as per law to ensure that the imports are bonafide trade transactions," the PNB statement said in the clarification dated February 15 to the exchanges accessed on Saturday.
Giving details of the fraud on the bank, the statement said that "on January 16, 2018, the partnership firm of Nirav Modi group approached our branch at Brady House, Mumbai and presented a set of import documents with a request to allow buyers' credit for making payment to the overseas suppliers."
"Since there was no sanctioned limit in the name of the above firms, the branch officials requested the firms to furnish at least 100 per cent cash margin for issuing Letter of Undertaking (LOU) for raising buyer's credit. The firms contested that they have been availing such transactions since past several years," it said. On scrutiny the bank found that fraudulent LoUs had been issued favouring the two groups.
On February 14, PNB informed the stock exchanges that a $1.8 billion fraud had happened in one of its Mumbai branches.
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."
The main accused in the case Nirav Modi, his wife Ami, brother Nishal Modi and maternal uncle Mehul Choksi left the country in January. The CBI is sending notices to ask them to be present themselves for further investigation.
Meanwhile, the PNB said it would be holding an extraordinary general meeting on March 16, 2018.
Follow NDTV for latest election news and live coverage of assembly elections 2019 in Maharashtra and Haryana.
Subscribe to our YouTube channel, like us on Facebook or follow us on Twitter and Instagram for latest news and live news updates.