Money & Banking

Nirav Modi scam: PNB asks for concrete repayment plan from prime accused

K R Srivats New Delhi | Updated on February 15, 2018 Published on February 15, 2018

Sunil Mehta, Managing Director & CEO, PNB (file pic)

Rejected 'vague offers' made recently

Punjab National Bank (PNB) has demanded a concrete repayment action plan from Nirav Modi, the prime accused in the Rs 11,300-crore 'Letter of Undertaking' scam, a top bank official said. "He (Nirav Modi) had last week sent us an email offering to repay the dues. We have asked him to come in person and we have not accepted the vague offers made by him. We have asked for a concrete repayment plan", Sunil Mehta, Managing Director & CEO, PNB told presspersons here.


Mehta said the scam had its origins in the year 2011 and came to light only in the the third week of January this year. "We approached CBI on January 29 this year and immediately filed an FIR," he said.

Mehta also confirmed that most of the lenders who accepted the fraudulent 'Letter of Undertaking' were overseas branches of Indian banks and there was only one pure play foreign lender. "We are in the recovery mode and looking to protect the financial interest of all lenders," he said.

Mehta declined to confirm whether the Enforcement Directorate had on Thursday raided the concerned PNB branch in Mumbai or not. He, however, said ED was already raiding the premises of Nirav Modi and seizing current assets. Asked if PNB had any fund-based exposure to Nirav Modi-led firms or Mehul Choksi firms, Mehta said the total exposure of the bank towards them stood at Rs 1,700 crore.

Published on February 15, 2018

A letter from the Editor

Dear Readers,

The coronavirus crisis has changed the world completely in the last few months. All of us have been locked into our homes, economic activity has come to a near standstill. Everyone has been impacted.

Including your favourite business and financial newspaper. Our printing and distribution chains have been severely disrupted across the country, leaving readers without access to newspapers. Newspaper delivery agents have also been unable to service their customers because of multiple restrictions.

In these difficult times, we, at BusinessLine have been working continuously every day so that you are informed about all the developments – whether on the pandemic, on policy responses, or the impact on the world of business and finance. Our team has been working round the clock to keep track of developments so that you – the reader – gets accurate information and actionable insights so that you can protect your jobs, businesses, finances and investments.

We are trying our best to ensure the newspaper reaches your hands every day. We have also ensured that even if your paper is not delivered, you can access BusinessLine in the e-paper format – just as it appears in print. Our website and apps too, are updated every minute, so that you can access the information you want anywhere, anytime.

But all this comes at a heavy cost. As you are aware, the lockdowns have wiped out almost all our entire revenue stream. Sustaining our quality journalism has become extremely challenging. That we have managed so far is thanks to your support. I thank all our subscribers – print and digital – for your support.

I appeal to all or readers to help us navigate these challenging times and help sustain one of the truly independent and credible voices in the world of Indian journalism. Doing so is easy. You can help us enormously simply by subscribing to our digital or e-paper editions. We offer several affordable subscription plans for our website, which includes Portfolio, our investment advisory section that offers rich investment advice from our highly qualified, in-house Research Bureau, the only such team in the Indian newspaper industry.

A little help from you can make a huge difference to the cause of quality journalism!

Support Quality Journalism
This article is closed for comments.
Please Email the Editor
You have read 1 out of 3 free articles for this week. For full access, please subscribe and get unlimited access to all sections.