PNB loan fraud: SFIO probing 107 firms belonging to Nirav, Choksi groups

After a Rs 12,646-crore Punjab National Bank (PNB) loan fraud, the government has asked serious fraud investigation office (SFIO) to probe 107 companies and 7 limited liability partnerships (LLPs) belonging to Nirav Modi and Mehul Choksi groups, Minister of State for Finance Shiv Pratap Shukla informed the Lok Sabha on Friday.

The corporate affairs 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, the minister said in a written reply.

With regard to effect of the fraud on PNB and other banks, the RBI has stated that it does not have specific information.

PNB has stated that it has adequate assets/ capital to meet any liability which may crystallise on the bank, the minister said.

The minister further said that the CBI has registered two cases relating to the matter and as on March 6 and arrested 18 people.

On the basis of FIRs registered by the CBI, Enforcement  Directorate (ED) has filed two cases under the provisions of the Prevention of Money Laundering Act,2002 and conducted searches at various locations and seized movable properties and has attached immovable properties.

Further, mutual funds and bank accounts have been frozen.

Letter of Request to 13 countries have been issued by the court seeking details of properties, bank accounts of companies,etc. ED has moved the court to obtain non-bailable warrants against the accused.

Further investigation is in progress.