The Minister of State in the Ministry of Finance
(a): Punjab National Bank (PNB) has commissioned a forensic audit relating to the recently reported fraud involving fraudulent issuance of Letters of Undertaking (LoUs) and Foreign Letters of Credit (FLCs). The audit will undertake forensic scrutiny of books involved, for a period of seven financial years.
(b): As per inputs of the Central Bureau of Investigation (CBI), companies belonging to the Nirav Modi and Gitanjali Groups are involved in the fraud reported by PNB, three cases have been registered, and a number of arrests made. The Directorate of Enforcement (ED) has apprised that, on the basis of cases registered by CBI, it has conducted searches at various locations, which resulted in seizure of valuables, and that it has also attached immovable properties and frozen mutual funds and bank accounts. ED has further apprised that Letter of Request to 13 countries have been issued by the court, seeking details of properties, bank accounts of companies, etc., and that ED has obtained non-bailable warrants against two defaulters. The Ministry of External Affairs has apprised that all passports of two defaulters have been revoked/cancelled by the passport authorities, as per passport rules. Investigations by CBI and ED are in progress.
Income Tax Department has apprised that it has also attached immovable properties, bank accounts and fixed deposits, and seized movable assets of group concerns in this connection.
The Ministry of Corporate Affairs has ordered investigation into the affairs of 107 companies and 7 Limited Liability Partnerships (LLPs) belonging to the Nirav Modi and Mehul Choksi Groups, to be carried out by the Serious Fraud Investigation Office. Company-wise details are annexed. Investigation is in progress. The Ministry has also filed a petition/application against the individuals, groups and their entities belonging to Nirav Modi and Mehul Choksi Groups before National Company Law Tribunal, Mumbai Bench and the tribunal has passed an injunction against all the respondents and other companies, LLPs, trusts and individuals from removal, transfer or disposal of funds, assets and properties of the individuals until further orders.
(c) To deter economic offenders from evading the process of Indian law by remaining outside the jurisdiction of Indian courts, Government has introduced the Fugitive Economic Offenders Bill, 2018 in Parliament.
***
Download PDF Files
