pennews
www.pennews.net
Nirav Modi fraud has been completely provided for now: PNB
Business

Nirav Modi fraud has been completely provided for now: PNB

Agency News

New Delhi, Feb 5 : Punjab National Bank on Tuesday said the Bank has done 100 per cent provisioning till the third quarter results against the accounts affected by the fraud carried out by Nirav Modi and now the lender has completely provided for the fraud .

The Bank’s provisions fell 38.4 per cent quarter-on-quarter to Rs 2,753 crore. Of this, Rs 2,014 crore has gone for making provisions against the accounts affected by the Rs 14,357-crore Nirav Modi fraud.

“Nothing left to provide for the fraud now,” PNB chairman Sunil Mehta said on the sidelines of an event for release of its Quarter 3 results here.

The PNB Fraud Case is related to fraudulent letter of undertaking worth Rs 14,356.84 crore issued by the Punjab National Bank at its Brady House branch in Fort, Mumbai; making the Bank liable for the amount.

The fraud was allegedly orchaestrated by jeweller and designer Nirav Modi. Nirav, his wife Ami Modi, brother Nishal Modi and uncle Mehul Choksi, all partners of the firms, M/s Diamond R US, M/s Solar Exports and M/s Stellar Diamonds; along with PNB officials and employees, and directors of Nirav Modi and Mehul Choksi's firms have all been named in a chargesheet by the CBI.

Nirav and his family absconded in early 2018, days before the news of the scam broke in India. On liquor baron Vijay Mallya, Mr Mehta said the lendor would recover his assets after following proper legal procedure. UNI