PNB Says Can Recover Quickly, As Police Widen Probe

Agencies
February 17, 2018

Feb 17: The state-run lender Punjab National Bank (PNB), hit by a $1.77 billion fraud, promised investors on Friday it was putting in place "better checks and balances", as investigators widened the probe into the country's biggest-ever bank scam. The country's financial crime agency, the Enforcement Directorate, said it had searched dozens of locations linked to Nirav Modi, the diamond billionaire at the centre of the investigation, over the last 48 hours, seizing diamonds, gold and jewellery worth 56.49 billion rupees ($880 million).

Raids were also carried out on Friday by the Central Bureau of Investigation (CBI) on the offices of jewellery retailer Gitanjali, whose chief executive has been accused along with Modi of colluding with PNB employees to fraudulently obtain advances for payments to overseas suppliers. The Gitanjali group of firms is led by Modi's uncle, Mehul Choksi. PNB has said companies tied to both retailers, whose outlets stretch from New York to London to Beijing, were the recipients of loans from several other banks based on guarantees provided by it.

Meanwhile the Reserve Bank of India, in a statement late on Friday, said it "has already undertaken a supervisory assessment of control systems in PNB and will take appropriate supervisory action".

Earlier PNB's Chief Executive Sunil Mehta, speaking on an investor conference call, said the bank was cooperating with the investigative agencies. India's second-largest state-run lender was also running an audit of its systems to prevent a recurrence of such a fraud, but did not see a long-term hit to its operations, he said.

"The amount is big. But we will have the capacities to bring it back to normalcy, maybe within six months," Mehta said. But he ended the call abruptly after less than 15 minutes when he was made aware of the presence of a number of journalists on the line. Before hanging up, Mehta was heard admonishing his staff for allowing the media to listen in to the call, the schedule of which had been published in a stock exchange filing.

Separately, a bank source told Reuters the lender was considering raising cash by selling some of its properties, including a giant office space in New Delhi, worth an estimated 50 billion rupees ($778.6 million). The bank, which has $120 billion in total assets, saw its shares fall for a third straight day on Friday. It has lost more than a fifth of its market value since it disclosed the fraud earlier this week.

Probe widens

A police source said the CBI, in a new case, has accused the Gitanjali group of defrauding PNBof $763 million. India's foreign ministry said it had suspended the passports of Modi and Choksi for four weeks, and had given them one week to voice objections to its plan to revoke the documents. Neither has been charged with any offence.

NDTV reported Modi, whose high-end jewellery has been worn by Hollywood stars including Kate Winslet and Rosie Huntington-Whiteley, was at a suite in a hotel in New York, citing household staff who answered the door.

Meanwhile, searches were conducted at 20 locations in six cities linked to Gitanjali and its directors, including offices, factories and residences, the police source said. Choksi, who is managing director of Gitanjali Gems Ltd, did not answer calls to his mobile phone. Shares in Gitanjali Gems, which also did not respond to a request for comment, fell 20 percent on Friday.

Gitanjali has previously denied Choksi's involvement in the fraud and said he would take "necessary legal action" to get his name removed from the police case. Modi has not spoken about the case so far. His flagship company Firestar Diamond says it has no involvement in the case.

Standalone case

PNB's Mehta said the bank had already made checks at almost all of its 7,000 branches and found no other incidents, calling the fraud at one of its Mumbai branches a standalone case. The biggest bank fraud in India's history has raised fears about the scale of problems in the banking sector that is already saddled with $147 billion of soured debt.

It has also provided an opportunity for Prime Minister Narendra Modi's critics to target the government for the losses at the state lender. Modi, the jeweller, had last month attended the World Economic Forum in Davos where the Indian prime minister, who is no relation, was a star guest. Indian media carried a group photograph with Prime Minister Modi in the foreground and Nirav Modi grinning between rows of Indian business leaders behind him.

Law minister Ravi Shankar Prasad said the government won't spare anyone and that law enforcement authorities had seized assets worth 13 billion rupees ($203 million) from Modi.

Analysts said the fraud case was likely to cast a long shadow over the banking sector, particularly state-run lenders, several of which had also provided loans under the assumption they were being backed by PNB. Union Bank of India, another state-run lender, said on Friday it has an exposure of $300 million as a counter-party lender.

Local media quoted top lender State Bank of India's chairman Rajnish Kumar saying they had a $212 million exposure. Axis Bank, a private sector lender, has said it has sold all its exposure related to the fraud.

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News Network
April 23,2020

New Delhi, Apr 23: Union Information and Broadcasting Minister, Prakash Javadekar, on Thursday condemned the attack on Republic TV editor-in-chief Arnab Goswami saying that this is "against democracy".

"We condemn the attempt to attack renowned journalist Arnab Goswami. Essentially, we condemn every attack on any journalist. Because this is against democracy," the Union Minister said.

"It is really ironical that those who preach tolerance have become so intolerant. Therefore, we condemn this attempt. We appeal to the collective wisdom that this is undemocratic. As per present law, definitely, police takes action, if there is a complaint," said Javadekar.

Two persons were arrested on Thursday morning for allegedly attacking Republic TV editor-in-chief Arnab Goswami and his wife Samyabrata Ray in Mumbai.

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fairman
 - 
Thursday, 23 Apr 2020

Javedkar is blind not to accept Arnab's venomous statement in deciding the nation. He is another shameless 

 

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News Network
February 4,2020

New Delhi, Feb 4: Miffed over the controversy created by its former Union minister and Uttara Kannada MP Anantkumar Hegde by his remarks against Mahatma Gandhi, the BJP, it was learnt, has issued a show-cause notice to him. The ruling party came under heavy criticism from the opposition over its MP’s remarks. The opposition has demanded a clarification from Prime Minister Narendra Modi over his party MP’s remarks.

Often in news for his controversial remarks, Hegde, sources said, could also be barred from attending the first parliamentary party meeting of the BJP of the budget session, scheduled on Tuesday. The party had taken a similar approach against its Bhopal MP Pragya Thakur during the last winter session for praising Mahatma Gandhi’s killer Nathuram Godse. Though the BJP leadership was earlier of the view that Hegde should tender an apology over his remarks but the party top brass, it was learnt, decided that it was not enough.

The Congress on Monday launched a scathing attack on the central government over the comments of BJP Lok Sabha MP Ananthkumar Hegde on Mahatma Gandhi. The party demanded that Prime Minister Narendra Modi come to Parliament and clarify his position on BJP leader’s “objectionable” remarks.

Congress party spokesman Anand Sharma said, “we can understand that why one after the other senior BJP leaders are insulting the memory of Mahatma Gandhi. They are disparaging the national movement, the freedom struggle because they are ideological descendents of those who were not only non-participants, but, actively opposed the freedom movement.” He further added, “Parliament is in session. We demand that the Prime Minister come to the House and make his position clear. As I have said, feeds that he is unhappy and angry, we are not concerned with that. In the very ideology, mindset, thinking and language of the BJP, there is violence.”

Asserting that the BJP MP’s statement was condemnable, Rajasthan Chief Minister Ashok Gehlot said the leaders of the saffron party could afford to call the freedom movement a drama as they never fought for the country’s independence. “Such statements reveal their true mindset that they use Gandhi's name just for show and have no regard for him,” he said.

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News Network
February 14,2020

New Delhi/Washington, Feb 14: India has offered to partially open up its poultry and dairy markets in a bid for a limited trade deal during US President Donald Trump's first official visit to the country this month, people familiar with the protracted talks say.

India, the world's largest milk-producing nation, has traditionally restricted dairy imports to protect the livelihoods of 80 million rural households involved in the industry.

But Prime Minister Narendra Modi is trying to pull all the stops for the US President's February 24-25 visit, aimed at rebuilding bonds between the world's largest democracies.

In 2019, President Trump suspended India's special trade designation that dated back to 1970s, after PM Modi put price caps on medical devices, such as cardiac stents and knee implants, and introduced new data localization requirements and e-commerce restrictions.

President Trump's trip to India has raised hopes that he would restore some of the country's US trade preferences, in exchange for tariff reductions and other concessions.

The United States is India's second-largest trade partner after China, and bilateral goods and services trade climbed to a record $142.6 billion in 2018. The United States had a $23.2 billion goods trade deficit in 2019 with India, its 9th largest trading partner in goods.

India has offered to allow imports of US chicken legs, turkey and produce such as blueberries and cherries, government sources said, and has offered to cut tariffs on chicken legs from 100 per cent to 25 per cent. US negotiators want that tariff cut to 10 per cent. The Modi government is also offering to allow some access to India's dairy market, but with a 5 per cent tariff and quotas, the sources said. But dairy imports would need a certificate they are not derived from animals that have consumed feeds that include internal organs, blood meal or tissues of ruminants.

New Delhi has also offered to lower its 50 per cent tariffs on very large motorcycles made by Harley-Davidson, a tax that was a particular irritant for President Trump, who has labelled India the "tariff king." The change would be largely symbolic because few such motorcycles are sold in India.

President Trump will be feted in PM Modi's home state of Gujarat, then hold talks in New Delhi and attend a reception that the hosts have promised will be bigger than the one organised for former president Barack Obama in 2015.

But it is far from clear whether India's offers will be enough to satisfy US Trade Representative Robert Lighthizer, who cancelled plans for a trip to India this week. Instead, he has held telephone talks with Commerce Minister Piyush Goyal.

The US dairy industry remained sceptical on Thursday that a viable deal is at hand.

"We're always looking for market access, but in terms of India, as of today I'm not aware of any real progress going on," said Michael Dykes, president of the International Dairy Foods Association and a member of USTR's agricultural trade policy advisory committee.

Mr Dykes said the US dairy industry was looking for access in viable commercial quantities.

A USTR spokesman and India's trade ministry did not respond to requests for comment.

A parliament panel is reviewing a draft data privacy law that imposes stringent controls over cross-border data flows and gives the government powers to seek user data from companies.

It is not clear whether it will be passed, or in what form, but the possibilities have unnerved US companies and could raise compliance requirements for Google, Amazon.com Inc, and Facebook.

The draft law is not part of the trade discussions, Indian officials say, because the issue is too difficult to resolve at the same time.

"The privacy and localization piece will be raised independently and in concert with the trade discussions," said a Washington-based source with knowledge of the US administration's thinking.

President Trump on Tuesday was non-committal about sealing a trade deal before his visit. "If we can make the right deal, we'll do it," he told reporters.

Two US sources said progress had been made on proposed alterations to the medical device price caps. India's new import tariffs on medical devices, walnuts, toys, electronics and other products on February 1 surprised US negotiators, however.

The new tariffs were aimed at China, which also makes medical devices, according to an Indian government source. "We have to protect our market and our companies," the source said.

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