Files in Punjab National Bank (PNB) branches in Dubai and Hong Kong have reportedly revealed collusion between high-ranking bank officials and Nirav Modi in the US$2 billion fraud the celebrity jeweller allegedly perpetrated.
Modi and his uncle, Mehul Choksi, allegedly raised credit from overseas branches of Indian banks using illegal guarantees issued with the connivance of PNB staff.
Investigators probing the PNB fraud expect to use the Dubai and Hong Kong files to pursue investigations into top PNB officials.
The files apparently reveal exactly 3,981 entries for Modi in Dubai and 2,149 at the Hong Kong branch were made by PNB, with the first transaction dating back to 23 September 2010.
Data showing glaring errors have been found in the files. Errors include two letters of credit issued against a single bill of lading and documents where the exporter is named as ‘XYZ’ instead of showing real particulars.In Hong Kong, investigators have reportedly found a buyer’s credit of $141,277 on behalf of Firestar Diamond was sanctioned, without even a written request. A US$2 million transaction between Firestar Diamond and Brilliant Diamonds used a fake invoice number.
These details were duly reported to the PNB head office but the bank authorities took no subsequent action.
Categories: Trade Based Financial crimes News