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Here is analysis of Punjab National Bank’s wilful defaulter list


New Delhi, June 05: Punjab National Bank (PNB) hit the headlines after it was allegedly cheated by jewellers Nirav Modi and Mehul Choksi.

The case relates to fraudulent letter of undertaking worth thousands of crore rupees issued by the Punjab National Bank at its Brady House branch in Fort, Mumbai; which made Punjab National Bank liable for the amount.

Here is analysis of Punjab National Bank’s wilful defaulter list

The fraud was allegedly organised by jeweller and designer Nirav Modi, his wife Ami Modi, brother Nishal Modi and uncle Mehul Choksi along with PNB officials and employees.

Nirav Modi's defence team even uses his pet dog in attempt to win bail

However, Modi and Choksi aren't the only ones who owe money, which is public money, to the PNB.

The PNB's official data shows that there has been sevenfold increase in wilful defaulter list from September 2013 to April 2019.

There were 159 wilful defaulters in September 2013, which finally increased to 1108 till April 30, 2019. These are the companies/firms which have outstanding dues of Rs 25 lakh and above.

The deep analysis of the data shows that not only Brady House branch handled public money irresponsibly but other branches too did it.

There are instances wherein the bank has given loan to different companies with same directors and filed suit as per its whims and fancies.

For example, the ECE House, New Delhi branch sanctioned loans to Mahuaa Media Pvt Ltd, Pearl Vision Ltd., Pixon Media Pvt. Ltd., and Century Communication Ltd.

The directors of Mahuaa Media Pvt Ltd. are P.K. Tewari, Anand Tewari and Abhishek Tewari. The directors of Pearl Vision Ltd. are P.K. Tewari and Abhishek Tewari. The Pixon Media Pvt. Ltd. has P.K. Tewari and Anand Tewari as directors and Century Communication Ltd. P.K. Tewari, Anand Tewari, Abhishek Tewari, and Meena Tewari.

The data also shows that the ECE, New Delhi branch also used different criteria for filing suit against the above mentioned companies.

Mehul Choksi says not related to firm involved in PNB fraud, claims innocence

The wilful defaulter list of September 2013 shows that the ECE, New Delhi branch surprisingly didn't file suit against Mahuaa Media Pvt. Ltd., Pearl Vision Ltd. and , Century Communication Ltd, which had defaulted loan of Rs 10486.32 lakh, Rs 5156.27, and Rs. 1774.34 lakh respectively.

However, it filed suit against Pixon Media Pvt. Ltd., which had defaulted a loan amount of Rs. 4316.18 lakh.

Similarly; PNB's ARMB, Mumbai branch sanctioned loans to Icon trading Co ( Rs. 1509.13 lakh), Magictime trading Co Pvt. Ltd. (Rs. 1454.95 lakh), and Honey Taste Pvt. Ltd.( Rs. 1454.26 lakh), which have Kapil Rajput, Mithilesh Rajput, Devprakash Rajput, Murugeshan Adimoolam, and Hemal N Jobanputraa as directors/partners.

In September 2013, the PNB declared these companies wilful defaulters but didn't file suit against them.

However, the bank has improved its performance in filing suits against the defaulters.

As of April 2019, the bank hasn't filed suit against only three defaulters out of 1108.

Banks recover Rs 40,400 crore from defaulters says RBI report

The latest defaulter list of PNB shows that Nirav Modi's M/s Firestar International Ltd owes Rs. 17860.03 lakh and Firestar Diamonds International Pvt. Ltd. Rs. 4831.96 lakh. Mehul Choksi's Geetanjali Gems Ltd. has outstanding loan of Rs 463351.88 lakh, Gili India Ltd 144542.7 lakh, Nakshatra Brands Ltd. 110874.02 lakh, Asmi Jewellery India Ltd. Rs. 10177.05 lakh.

Coal scam accused Manoj Jayaswal also figures on the list whose company Jas Infrastructure and power Limited has defaulted loan of Rs. 41095.91 lakh.

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