TRACKING THE CASE
As probe into PNB case widens, a look at what led to the loan fraud
JANUARY
1: Nirav Modi leaves India 6: Mehul Choksi, Modi’s uncle and head of the Gitanjali Group, leaves India
16: Nirav Modi group representatives approach PNB’s branch seeking issuance of letter of undertakings for raising buyer’s credit. New set of bank officials insist on cash margins, which the group contests
16-24: Closer scrutiny of books shows earlier letters of undertaking (LoUs, essentially guarantees) issued to the group firms made without entries in bank’s books and without supporting documentation. PNB holds a series of meetings with the firms, asking them to pay the amounts and provide necessary documentation related to the imports
25: First set of LoU liabilities related to 3 Modi group firms amounting to ~281 crore mature
29: PNB files a fraud complaint against Modi group firms with RBI. Moves to register FIR with CBI
FEBRUARY
4: CBI issues lookout notice against Nirav Modi
5: PNB informs stock exchanges about the ~281 crore fraud involving the Modi group
7: PNB files fraud complaint against the Mehul Choksi promoted Gitanjali group companies with RBI for ~65 crore LOU liability due on February 9. FIR filed against these companies with CBI
12: Total fraud of ~11,394 crore detected involving Modi group firms, Gitanjali group firms and Chandri Paper and Allied Products Pvt Ltd dating to 2011 13: Bank files fresh FIR with CBI and registers complaint with Enforcement Directorate 14: Bank informs the stock exchanges of the magnitude of the fraud
15: ED conducts raids across 17 locations; attaches properties worth ~5,100 crore
16: MEA suspends Modi and Choksi’s passport; CBI seeks Interpol help amid reports in several media outlets that the billionaire jeweller is in New York
17: The CBI arrests a former employee of PNB who is believed to be a key figure in the fraud disclosed by the country’s second-largest state-run lender earlier this week. Two other persons are also arrested, including a key employee of Modi.