Sensex crashes over 1,200 points; investors lose over Rs 3 lakh cr

New Delhi, May 9: Three promoters of Ram Dev International, recently booked by the CBI for allegedly cheating a consortium of six banks to the tune of Rs 411 crore, have already fled the country before the State Bank of India reached the agency with the complaint, officials said on Saturday.

The CBI had recently booked the company engaged in export of Basmati rice to the West Asian and European countries and its directors Naresh Kumar, Suresh Kumar and Sangita on the basis of complaint from the State Bank of India (SBI), which suffered the loss of more than Rs 173 crore, they said.

The company had three rice milling plants, besides eight sorting and grading units in Karnal district with offices in Saudi Arabia and Dubai for trading purposes, the SBI complaint said.

Besides SBI, other members of consortium are Canara Bank, Union Bank of India, IDBI, Central Bank of India and Corporation Bank, they said.

The Central Bureau of Investigation (CBI) did not carry out any searches in the matter because of the coronavirus-induced lockdown, the officials said.

The agency will start the process of summoning the accused, incase they do not join the investigation, appropriate legal action will be initiated, they said.

According to the complaint filed by SBI, the account had become non-performing asset (NPA) on January 27, 2016.

The banks conducted a joint inspection of properties in August and October, nearly 7-9 months later only to find Haryana Police security guards deployed there, they said.

"On inquiry, it has been come to notice that borrowers are absconding and have left the country," the complaint filed on February 25, 2020, after over a year of account becoming NPA, the officials said.

The complaint alleged that borrowers had removed entire machinery from old plant and fudged the balance sheets in order to unlawfully gain at the cost of banks'' funds, it said.

London, May 11: Fugitive diamond merchant Nirav Modi's five-day extradition trial over the nearly USD2 billion Punjab National Bank (PNB) fraud and money laundering case is set to begin in London's Westminster Magistrates' Court today.

The London High Court rejected Nirav Modi's bail plea in Punjab National Bank (PNB) bank fraud case for the fifth time in early March.

Modi, the prime accused in the PNB fraud case, is currently lodged at Wandsworth prison in south-west London and is wanted for his alleged role in the Rs 13,570 crore loss caused to the Punjab National Bank (PNB) along with his uncle, Mehul Choksi.

Modi, 48, was arrested in March last year by Scotland Yard in connection with the case.

Modi was remanded in custody till February 27, 2020, after he appeared before a UK court on Thursday via video link from his London prison.

The latest bail hearing followed further assurances by Modi, including an increase in the amount of security he had offered as a guarantee as well as stricter bail conditions.

On his last bail application, Modi offered USD 4 million as a security guarantee in return for bail, an offer that was rejected by judges who ruled that there was a real risk that Modi would flee the UK to a country which has no extradition treaty with India.

At the same hearing, the judge ruled that there was "strong evidence" that Modi had engaged in "witness intimidation" and destroying evidence.

Given the seriousness of such allegations, it was all but certain that the latest bail application would be rejected.

Modi's lawyers had contended that their client was being held in difficult conditions at Wandsworth prison and had also claimed that his mental health was deteriorating as a result of his incarceration.

However, ruling at the High Court today, Justice Ian Dove said there was a "clear need for this application to be refused in the present circumstances."

It comes just days after the second sale of assets belonging to Modi valued at millions of dollars.

The items include a luxury Rolls Royce car, a Patek Philippe watch and a painting by the renowned Indian artist Amrita Sher-Gil valued at USD 2.5 million but expected to fetch considerably more.

Meanwhile, Nirav's brother Neeshal Modi, who is also one of the co-conspirators in the PNB scam, has written to Enforcement Directorate, distancing himself from his brother's actions and said that he had no knowledge of it.

New Delhi, May 6: The government on Wednesday said no data or security breach has been identified in Aarogya Setu after an ethical hacker raised concerns about a potential security issue in the app.

The app is the government's mobile application for contact tracing and disseminating medical advisories to users in order to contain the spread of coronavirus.

On Tuesday, a French hacker and cyber security expert Elliot Alderson had claimed that "a security issue has been found" in the app and that "privacy of 90 million Indians is at stake".

Dismissing the claims, the government said "no personal information of any user has been proven to be at risk by this ethical hacker".

"We are continuously testing and upgrading our systems. Team Aarogya Setu assures everyone that no data or security breach has been identified," the government said through the app’s Twitter handle.

The tweet gave point-by-point clarification on the red flags raised by the hacker.

"We discussed with the hacker and were made aware of the following... the app fetches user location on a few occasions," it said, but added that this was by design and is clearly detailed in the privacy policy.

The app fetches users’ location and stores on the server in a secure, encrypted, anonymised manner - at the time of registration, at the time of self assessment, when users submit their contact tracing data voluntary through the app or when it fetches the contact tracing data of users after they have turned COVID-19 positive, it said.

On another issue that users can get COVID-19 stats displayed on the home screen by changing the radius and latitude-longitude using a script, Aarogya Setu said that all this information is already public for all locations and hence does not compromise on any personal or sensitive data.

"We thank the ethical hacker on engaging with us. We encourage any users who identify a vulnerability to inform us immediately...," it said.

Responding to Aarogya Setu's clarification, Alderson tweeted, "I will come back to you tomorrow".