Jaipur | India | Updated February 22, 2018 11:15 AM IST:

Updates on Nirav Modi PNB Scam. In the Rs 11,400-crore PNB fraud case, the Enforcement directorate has seized shares and mutual funds of Nirav Modi and Mehul Choksi Group. It is learnt that the MFs and shares amount to Rs94 crore. But will it do some good?

Experts suggest that such freeze of account of Modi and the group may not be sufficient for the recovery of the fraud amount and the government may have to take stringent steps to recoup the money.

Notably, Nirav Modi, a jewellery giant had allegedly taken loan from PNB and had not returned it leading to the loss to the bank and the country capital. It is said that the loans worth Rs11,300 crore were disbursed to Modi and his shell companies and the money was not returned. It is also alleged that many PNB officials and higher officials have been involved in this scam.

Finance minister Arun Jaitley has also spoken on Modi PNB Scam and said that the auditors were equally accountable for the loss to the public-sector bank and it is believed that further action could be taken against people involved in the scam.

Lately, Nirav Modi’s lawyers has told media that his client Modi has not acsonded and has been on business tour. On the other hand, the Income Tax notices were also issued to many of Modi’s top clients and it is believed that PNB could be adopting some more controls to contain such mega frauds.

The ED has seized around 9 cars of Nirav Modi which includes the most precious Rolls Royce Ghost and two Mercedes luxury cars, sources said. The enfocement directorate also seized Rs8 crore worth mutual funds and shares of Modi and Rs87 crore of Mehul Choksi Group. It is also learnt that ED has also confiscated some precious paintaings and sculptures which were works of some of the most famous painters including MF Hussain.

VB News Opinion: The size and amount of PNB Scam is so big that such a meagre amount recovered by seizing MFs and shares of Nirav Modi may not do any good. The fraud amounts to Rs11,300 crore while the MF’s and shares seized are to the tune of Rs8 crore and 86 crore only which is too small a amount.

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