Modi has not yet responded to the allegations and could not be reached for comment.
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The Wharton dropout moved to India in his later years and founded Firestar, a diamond sourcing and trading company.
Mehta further said the bank will honour all its bonafide commitments.
The stock which slumped 10 percent yesterday, closed 11.97 percent or 17 points lower at 128.35 level today.
As per media reports, the other banks to have also lent money to Nirav Modi include Union Bank, SBI Overseas Bank, Axis Bank and Allahabad Banks. The matter is already referred to law enforcement agencies to examine and book the culprits as per law of the land.
“Four big jewellers – Gitanjali, Ginni, Nakshatra and Nirav Modi – are under scanner”. His current whereabouts are unknown.
Two different complaints have been registered by the bank authorities with CBI against the billionaire jewellery designer Nirav Modi and a jewellery brand in this connection on Tuesday night, according to the sources.
He said Nirav Modi’s passport has been revoked and Look Out Circular issued against him.
PNB, which has assets of $120 billion, shocked India’s financial sector when it disclosed the fraud in a regulatory filing on Wednesday. Letters of undertaking (LoUs) are typically issued by a bank giving some sort of a guarantee on behalf of a company.
Now, letters of credit are a common banking practice, which is used to obtain funds from branches of other banks. Earlier while hitting out at Prime Minister Narendra Modi, Congress party spokesperson said that how can Nirav Modi and Mehul Choksi dupe the entire banking system through forged Letters of Understanding under the nose of Modi government? “Whatever it takes, we will do it”, he said. “SCAM began in 2011- should find out Nirav’s political links (sic)”, Poonawalla tweeted.
Later, the official would convey via SWIFT the acceptance of bills for the full amount of the FLC to the overseas negotiating branch, said the PNB, clearly hinting at a possible major exposure of other banks in the fraud.
“Why did the Prime Minister allow such a fellow to be part of the Indian business delegation?” asked Surjewala.
Congress leaders claimed that the Prime Minister’s Office had been informed by a Bengaluru-based whistle-blower S V Hari Prasad about the dealings of Mehul Choksi, who runs a partnership firm with Nirav Modi, in July 26, 2016.
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Specifically, it sought to know whether such raids were taking place, and if so, urged PNB to detail “the sequence of events in chronological order” and specify the material impact that this may have on the bank.
