PNB Scam: 107 companies, 7 LLPs linked to Nirav Modi and Mehul Choksi under SFIO probe

The government on Friday said that corporate affairs ministry's Serious Fraud Investigation Office (SFIO) is probing 107 companies and seven Limited Liability Partnerships linked to Nirav Modi and Mehul Choksi groups with regard to the nearly Rs 12,700 crore Punjab National Bank scam.

Finance Minister Arun Jaitley told the Lok Sabha that an investigation by the SFIO has been ordered into the affairs of "107 companies and 7 LLPs belonging to Nirav Modi and Mehul Choksi Groups".

The Serious Fraud Investigation Office (SFIO) -- white collar crime probe agency-- comes under the corporate affairs ministry.

A multi-agency probe is already underway into the fraud which was mainly perpetrated by way of fraudulent Letters of Undertaking (LoUs).

In a written reply, Jaitley, who is also the Corporate Affairs Minister, said the ministry has filed a petition against individuals, groups and their entities belonging to Nirav Modi and Mehul Choksi Groups before the Mumbai bench of the National Company Law Tribunal.

"... the tribunal has passed an injunction against all the respondents and other companies, LLPs, trusts and individuals from removal, transfer or disposal of funds, assets and properties of the individuals until further orders," he said.

The CBI has registered cases relating to the Punjab National Bank matter and has made several arrests.

On the basis of FIRs registered by CBI, Enforcement Directorate has filed two cases under the provisions of the Prevention of Money Laundering Act, 2002, the minister said.

"Letter of Request to 13 countries have been issued by the court seeking details of properties, bank accounts of companies etc. The Enforcement Directorate has moved the court for obtaining non-bailable warrants against accused persons. Further investigation is in progress," Jaitley said in the written reply. 

In another reply, the government said that the corporate affairs ministry has ordered SFIO probe against 208 companies for alleged fraud in the first 11 months of the current financial year.

PP Chaudhary, the Minister of State for Corporate Affairs, said in a written reply to Lok Sabha that the ministry ordered investigations through SFIO into the affairs of 208 firms. In comparison, a total of 111 companies were under the scanner of SFIO in the entire 2016-17, 184 in 2015-16 and 71 in 2014-15.

The SFIO continues to grapple with staff crunch with half of the sanctioned posts remaining vacant.

It has a total of 133 sanctioned positions. Out of these, only 66 positions are filled while the rest are vacant. In additional a total of 35 experts of various fields are presently engaged as consultants, Chaudhary said.

The agency is a multidisciplinary organisation having experts for prosecution of white collar crimes and frauds under the companies law. 

(With PTI inputs)