The names included Nirav Modi, his brother Nishal Modi, three companies - Diamond R US, Solar Exports, Stellar Diamond and seven employees of these companies Hemant Bhat, Vipul Ambani, Arjun Patil, Kavita Mankikar, Miten Pandya, Manish Bosamiya, and Subhash Parab.
Modi and his fellow people along with some officials of PNB frauded the bank of around $2 billion. The CBI alleged that the fraud was perpetrated by fraudulently issuing 142 Letters of Undertaking (LoUs) to overseas banks for obtaining buyer's credit and 58 Foreign Letters of Credit (FLCs) in favour of the three companies.
In case of default, the bank issuing the LoU has to pay the liability to the credit-giving bank.
This quid pro quo pertains specifically to alleged illicit payments made by the companies of Choksi, they said, adding that the probe into the overall picture to establish the total amount alleged received from companies of Modi and Choksi is still underway.
For the full fiscal 2017-18, bank posted standalone loss of Rs 12,282.82 crore against a profit of Rs 1,324.80 crore in 2016-17. This is the biggest banking fraud in India's history. Around 40% of this figure was accounted for by the Nirav Modi fraud alone. Over the last couple of years, following the central bank's directive that mandates banks to disclose all their bad and doubtful loans, several public sector banks have been reporting huge amounts of bad loans and Punjab National Bank figures among the banks that are worst hit due to heavy defaults by borrowers.
The bank's growth will be severely limited for the foreseeable future.
Given the dire state of PNB's finances, it is likely to be put under the Reserve Bank of India's Prompt Corrective Action watchlist (PCA).
Earlier on May 3, the Enforcement Directorate (ED) told the Delhi High Court that the affidavits filed by Modi's uncle and business partner Mehul Choksi's firm Gitanjali Gems in the court were 'false and misleading'.
Earlier this month, the daily had reported that the Bankruptcy Court for the Southern District of NY had asked a global professional services firm, Alvarez and Marsal, to investigate the circumstances surrounding the alleged Rs 13,000 crore bank fraud involving the diamantaire-turned-fugitive.