PNB Scam:Billionaire jewellery designer Nirav Modi is currently in New York?

NDTV reported it has traced Nirav Modi to an upscale apartment in Midtown Manhattan.

Sources have confirmed to NDTV that Nirav Modi, the main accused in alleged fraudulent transactions of over Rs. 11,400 crore through 150 letters of understanding issued by Punjab National Bank, has been discreetly living at New York's JW Marriott Essex House at 160 Central Park South, which includes both a hotel and apartments. 

Punjab National Bank (PNB) finally came out with their version of the Nirav Modi scam on Thursday with the bank's Chief, Sunil Mehta, addressing a media conference.

PNB MD & CEO Sunil Mehta has said that the bank has the capability to come out of the situation, they just need some "breathing time".

Mehta said that the fraud began in 2011. "The scam was first detected by our officials at first in 2011 and we had reported it to the concerned agencies," he said.

But he also insisted that "PNB is committed in clean banking" and that is why they reported it immediately to the regulators.

"You are fully aware that we have kept the members involved in the developments. We have kept all the bankers aware of this situation," Mehta said in the conference.

He also said that the PNB employees who were involved in the fraud, have also been reported to the regulators, along with the creditors.

Replying to a query, Mehta said, "We detected the fraud on January 3. We got to know that two of our employees did some un-authorised transactions. The bank initiated criminal action against our staff member."

He also said, "This is a standalone incident. It has taken place only in one of our branches."

Replying to a query on what took the bank so long to find out about the fraud, Mehta said that the fraud was internally detected when a customer came for renewal on January 25.

The PNB scam has affected other Indian banks, according to media reports, because these banks had lent money on the basis of Letter of Understanding (LoU) issued by PNB.

Mehta said at the press conference that mainly the international branches of Indian banks were involved.

According to a TOI report, initial investigations suggest that Allahabad Bank, Axis Bank and Union Bank funded close to Rs 7,000 crore on the strength of the LoUs, with Allahabad Bank having the largest exposure.

PNB share prices plummeted on Thursday.

Meanwhile, the Congress and the ruling BJP exchanged barbs over the entire episode.

Union Minister Ravi Shankar Prasad on Thursday said no person will be spared who will be found guilty in the alleged Punjab National Bank (PNB) scam.

"I wish to make it very clear and this I can also convey on the behalf of the govt that no shall be spared in the banking system who has sought to derail ordinary banking system to help Nirav Modi," Prasad told media.

He said allegations made by the Congress over the issue were 'baseless'.

"Using term like Chota Modi is not acceptable," he said.

He said Nirav Modi was not part of Prime Minister Narendra Modi's delegation that visited World Economic Forum in Davos.

"He had no interaction with the PM," Prasad said.

Congress President Rahul Gandhi, West Bengal Chief Minister Mamata Banerjee and other opposition leaders targeted Prime Minister Narendra Modi and his government over the alleged  Punjab National Bank (PNB) scam on Thursday.

Attacking the PM, Congress supremo Rahul Gandhi said diamond merchant Nirvav Modi's Rs 11,500 crore fraud in the country's second-biggest state-run bank was a guide to "looting India".

He said the 'guide' involved 'hugging' Narendra Modi and then escaping the country.

"Guide to Looting India by Nirav MODI 1. Hug PM Modi 2. Be seen with him in DAVOS Use that clout to: A. Steal 12,000Cr B. Slip out of the country like Mallya, while the Govt looks the other way. #From1MODI2another," Gandhi tweeted attacking Narendra Modi and his government over the alleged scam.

He tweeted after Congress leader Gaurav Gogoi shared an image on social media where the PM could be seen  with Indian CEOs at the World Economic Forum in Davos in January.

Nirav Modi could be seen in the group photo which also features PM Modi.

"What criteria does the Prime Minister use to select the CEOs accompanying him on foreign trips? #NiravModi #PNBScam," Gogoi tweeted.

Meanwhile, West Bengal Chief Minister Mamata Banerjee said people's savings were no more safe and demanded for a thorough, time bound enquiry into the alleged scam. 

"Look what happened at Punjab National Bank ? A scam of more than Rs 11,000 crore. People's savings are not safe. There must be a thorough, time bound enquiry," Banerjee tweeted.

Randeep S Surjewala, Communications in Charge of All India Congress Committe tweeted, "Who is Nirav Modi? The new #ModiScam? Was he tipped off like Lalit Modi & Vijay Mallya to escape by someone within the Govt? Has it become the norm for letting people run away with public money? Who is responsible?"

The Enforcement Directorate (ED) raided the home, offices and showrooms of Nirav Modi, the globally acclaimed diamond jeweler, with regard to the alleged Punjab National Bank (PNB) scam, according to media reports on Thursday.

The raids were conducted across Delhi and Mumbai, media reported.