Regulator, bourses analyse trade details of Modi, Choksi entities
New Delhi : Markets regulator Sebi will consider penal action against Punjab National Bank (PNB) and Gitanjali Gems after completion of its probe into suspected trading and disclosure related issues in the matter of over Rs 14,000-crore fraud, senior officials said.
The markets watchdog last week issued a warning letter to PNB for delaying disclosures to stock exchanges about the fraudulent transactions allegedly carried out by absconding Nirav Modi and Gitanjali Group of companies. However, the probe is continuing and the penal action would depend on the final outcome of the investigation, the officials added.
PNB was defrauded allegedly by the diamond trader and his associates by fraudulent use of Letters of Undertakings (LoUs) and Foreign Letters of Credit (LoC) in connivance with certain bank officials.
The Securities and Exchange Board of India (Sebi) and stock exchanges have been analysing the stock market trade details of all entities associated with Modi and Gitanjali Gems’ main promoter Mehul Choksi, who has already been under scanner for various cases including a brokerage default incident, senior officials said.
Incidentally, in July 2013, NSE in consultation with Sebi had debarred Gitanjali Gems and Choksi, among others from trading, for securities market violations relating to trading in his company.
Further, they are also being investigated by the Enforcement Directorate (ED) and Central Bureau of Investigation (CBI). As per Sebi’s warning letter, there were delays of 1-6 days by PNB in making disclosures to the stock exchanges pertaining to the filing of complaints with the RBI and CBI. This delay in informing the stock exchanges is a violation of the listing regulations.
Under these norms, companies need to inform stock exchanges about any price sensitive information in a timely manner.
Defaults by PNB borrowers rise
NEW DELHI: Punjab National Bank saw wilful defaults by big borrowers growing further to Rs 15,199.57 crore in April this year over the previous month.
Big wilful defaulters are categorised by PNB as those borrowers with loan outstanding of Rs 25 lakh and over. Major defaulters in big borrowers category include Kudos Chemie Rs 1,301.82 crore; Kingfisher Airlines Rs 597.44 crore; BBF Industries Rs 100.99 crore; ICSA Rs 134.76 crore; Arvind Remedies Rs 158.16 crore and Indu Projects Rs 102.83 crore. Jas Infrastructure and Power Rs 410.96 crore; VMC Systems Rs 296.08 crore; MBS Jewellers Rs 266.17 crore also figured in the list. These borrowers were part of the consortium lending by PNB.
CBI seeks red corner notice against Nirav Modi, Choksi
New Delhi : The CBI is likely to approach Interpol for a Red Corner Notice against absconding billionaire jewellers Nirav Modi and Mehul Choksi, sources said. The agency recently charged both Modi and Choksi separately in the scam and will now approach the Interpol for a Red Corner Notice aimed at bringing them back for facing trial in the cases against them, the sources said. The PNB had approached the CBI with a complaint on the basis of which the agency had registered an FIR against Modi. The agency had immediately issued a diffusion notice with the Interpol to track Modi and Choksi but their whereabouts remain unknown, the sources said. Modi along with his wife Ami, brother Nishal and uncle Choksi had fled the country before the bank approached the CBI with a complaint against his companies. They said the Red Corner Notice will allow enforcement agencies of the member countries of Interpol to try to find and arrest them in their respective countries.
