PNB fraud: Nirav Modi may face non-bailable warrant; top 10 developments

Nirav Modi and Mehul Choksi's overseas businesses and assets across more than a dozen countries are under the scanner of the Enforcement Directorate (ED), which will soon send judicial requests to countries like Belgium, Hong Kong, Switzerland, the United States, the United Kingdom, Dubai, Singapore, and South Africa for obtaining information about them as part of the widening of its probe into the Rs 114-billion Punjab National Bank (PNB fraud case.

Nirav Modi, his wife Ami, and uncle Mehul Choksi have been summoned by the ED to appear at its zonal office in Mumbai on Monday. According to sources, if they skip the summons, the agency could approach a special PMLA court to get non-bailable warrants issued against them.
Modi has already had his luxury cars, including a Rolls Royce Ghost, a Mercedes Benz, and a Porsche Panamera, and imported watches, seized in the past week. During the weekend, the Income-Tax department seized over 150 paintings by renowned artists from Nirav Modi's warehouse located at Wadala in Mumbai.

While probe agencies continue to put pressure on Modi and Choksi, the Institute of Chartered Accountants of India (ICAI) assured of an "accelerated inquiry" into auditors' role in the PNB fraud.

Rs 114 bn PNB scam: ICAI begins probe to know whether any CA was involved

The Institute of Chartered Accountants of India (ICAI), a state-controlled regulator for the sector, has said it is probing whether auditors played a role in perpetrating the alleged $1.77 billion fraud that Punjab National Bank unearthed last week.

The ICAI said on Thursday it has asked the Securities and Exchange Board of India, Punjab National Bank (PNB) and federal investigating agencies to share their findings of the alleged fraud, including anything related to the involvement of any chartered accountants.

The ICAI, which functions under the administrative control of India's Ministry of Corporate Affairs, said it has set up a committee to study the systemic lapses that contributed to the fraud and to suggest remedial measures and improvement.

Separately, the Economic Times newspaper reported that PNB has tapped PwC to conduct a probe into the alleged fraud that would help the bank build a case against jewellers Nirav Modi and Mehul Choksi.

PNB officials were not immediately available for comment, while PwC declined to comment on the matter.