'RBI failure', says government on PNB scam
New Delhi, Feb 20 (IBNS): Reacting to the country's biggest banking scam by celebrity jeweller Nirav Modi involving Punjab National Bank (PNB), the government has held the Reserve Bank of India (RBI) responsible, media reports said.
The government said the scam has exposed the failures of the RBI.
The government's reaction came at a time the Central Bureau of Investigation (CBI) has arrested three more PNB official who had allegedly conspired with Modi and his kin to issue Letter of Guarantee.
With the Letters of Guarantee, Modi used to raise loans from Overseas Indian banks.
The government on Friday announced that the passport of the fugitive billionaire Nirav Modi, the prime accused in the Rs. 11,292-crore Punjab National Bank fraud case, and his business partner and maternal uncle Mehul Choksi have been cancelled for four weeks.
Modi, who is in the centre of a huge storm, reportedly left the country in January, much before the scam came to light.
According to media reports, he is now in New York.
Meanwhile, Interpol has issued diffusion notice against Modi, his wife Ami, brother Nishal and partner Choksi.
While the Central Bureau of Investigation (CBI) has registered two cases against Modi, the Enforcement Directorate (ED) has reportedly seized gold and diamond worth Rs 5,500 crores from the searches conducted at 17 properties of the diamond merchant across India.
On February 14, the CBI received complaints from PNB, which detected a Rs 11,292 crore fraud involving Modi.
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