'We can not monitor investigation in Punjab National Bank scam', says Supreme Court

The development comes just a day after the CBI questioned four senior RBI officials in connection with the PNB fraud involving jewellers Nirav Modi and Mehul Choksi

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Meanwhile, the Punjab National Bank MD Sunil Mehta has said that the bank will be out of the "problem and pain" caused by Nirav Modi fraud case in six months. The arrest will be based on local laws and mutual judicial assistance agreements.

The government has claimed to have tracked Nirav Modi in Hong Kong where it has sent a request for his provisional arrest.

"If India has made a relevant request to the Hong Kong SAR (Special Administrative Region), we leave the matter to the Hong Kong SAR and hope that it will follow the basic laws and relevant judicial system agreement with India to deal with the relevant issue", Geng said.

A bench of chief justice Dipak Misra and justices A.M. Khanwilkar and D.Y. Chandrachud was told by the centre that agencies like the Central Bureau of Investigation (CBI), Enforcement Directorate (ED), the Income Tax department and the Serious Fraud Investigation Office (SFIO) are independently probing the PNB scam.

Mumbai: A special CBI court in Mumbai on Monday issued a judicial request to be sent to the United Kingdom after the central probe agency moved a petition, seeking to attach a bank account of beleaguered diamond trader Nirav Modi, a key accused in the Rs 12,700-crore fraud in the Punjab National Bank (PNB).

The fraud came to light after PNB filed a complaint with CBI against Modi in January.

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Modi owns a chain of boutiques in Hong Kong.

Recently, a special CBI court issued non-bailable warrants against Modi and Choksi.

Senior government officials said that PNB, which was already a victim of fraud, should have checked its accounts relating to the sector more carefully and this might have put the focus on Modi and Choksi's companies. He detailed the number of properties, assets and bank accounts of Nirav Modi attached by the investigating authorities.

PNB has been left grappling with the Nirav Modi-Mehul Choksi scam after the duo, in collusion with some bank officials, illegally renewed letters of undertaking.

The agency has also summoned the official who handled foreign exchange transactions in the Hong Kong branch of the Allahabad Bank.

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