SFIO to investigate 110 companies, 10 LLPs in PNB scam

NEW DELHI: Tightening the noose, the government today ordered the SFIO to probe around 110 companies and 10 limited liability partnerships related to diamantaire Nirav Modi and his business associate Mehul Choksi in the Rs 11,400 crore Punjab National Bank fraud, according to sources.

The two businessmen are the key suspects in one of the biggest scams in the banking industry, and multiple investigation agencies are probing the case.

The corporate affairs ministry has ordered the SFIO to investigate around 110 companies, including some listed ones, and about 10 LLPs linked to Modi and Choksi, sources said.


The Serious Fraud Investigation Office (SFIO), which comes under the ministry, mainly probes white collar crimes, and also has powers to arrest.

The central agencies have intensified their crackdown on Modi and his uncle Choksi, with the Enforcement Directorate today seizing jewellery worth Rs 22 crore and the Income Tax Department attaching seven properties.

The public sector lender was defrauded by way of fraudulent Letters of Undertaking (LoUs).

Last week, the Reserve Bank had said that fraud at PNB is a case of operational risk arising on account of delinquent behaviour by one or more employees of the bank and failure of internal controls.

The RBI has already undertaken a supervisory assessment of control systems in PNB and will take appropriate supervisory action, it had said.

Earlier in the day, Punjab National Bank said it would honour all its "bonafide commitments" under the LoUs and Foreign Letters of Credit (FLCs) in connection with the colossal banking fraud.