Lok Sabha Question No. 3518 (UNSTARRED), answered on 2018-03-16
Subject: Legislation to Curb Bank Loan Frauds
Ministry: FINANCE
Asked by: R.K. BHARATHI MOHAN, PR. SENTHILNATHAN

## GOVERNMENT  OF INDIA

## MINISTRY  OF FINANCE DEPARTMENT  OF FINANCIAL SERVICES

## LOK SABHA UNSTARRED QUESTION NO. 3518

TO BE ANSWERED  ON THE 16 TH  MARCH  2018/ PHALGUNA 25, 1939 (SAKA)

## Legislation to Curb  Bank Loan Frauds

## 3518.    SHRI  BHARATHI  MOHAN  R.K. : SHRI  PR. SENTHIL NATHAN:

Will  the Minister  of FINANCE  be pleased to state:

- (b) the details  of companies  found involved  in the PNB loan  scam and the action  taken  against  the erring  companies  and those having  nexus with  such organisations,  company-wise;  and
- (a) whether  the Government  has appointed  any  Audit  firm  for conducting  probe  and investigations on the Punjab  National  Bank Loan  Scam and if so, the details  thereof;
- (c) whether  the Government  proposes to bring  out a legislation  with  relevant  provisions  to curb any further  Banking  loan  frauds and if so, the details  thereof?

## ANSWER

The Minister  of State in the Ministry  of Finance (SHRI SHIV PRATAP  SHUKLA)

(a):   Punjab   National   Bank (PNB)  has  commissioned  a forensic   audit   relating   to  the  recently  reported fraud  involving   fraudulent   issuance   of  Letters   of  Undertaking (LoUs)   and  Foreign   Letters   of  Credit (FLCs).  The audit  will  undertake  forensic  scrutiny  of books  involved,  for a period  of seven financial  years. (b): As per inputs  of the Central  Bureau  of Investigation  (CBI), companies  belonging  to the Nirav  Modi and Gitanjali  Groups  are involved  in the fraud reported  by  PNB,  three  cases have been registered,  and a number  of arrests  made.  The Directorate  of Enforcement  (ED) has apprised  that,  on the basis of cases registered  by  CBI, it has conducted  searches at various  locations,  which  resulted  in seizure  of valuables, and that  it has also attached  immovable  properties  and frozen  mutual  funds and bank  accounts.  ED has further  apprised  that  Letter  of Request  to 13 countries  have been issued by  the court,  seeking  details  of properties,  bank  accounts  of companies,  etc.,  and that  ED has obtained  non-bailable  warrants  against  two defaulters.  The Ministry of External  Affairs  has apprised  that  all passports  of two  defaulters  have been revoked/cancelled  by  the passport  authorities, as per passport  rules.  Investigations  by  CBI and ED are in progress.

Income Tax Department  has apprised  that  it has also attached  immovable  properties,  bank  accounts  and fixed deposits,  and seized movable  assets of group  concerns  in this  connection.

The  Ministry   of  Corporate   Affairs   has  ordered   investigation into   the  affairs  of  107  companies   and  7 Limited   Liability Partnerships   (LLPs)  belonging   to  the  Nirav   Modi   and  Mehul   Choksi   Groups,   to  be carried  out by  the Serious  Fraud  Investigation  Office.  Company-wise details  are annexed.  Investigation  is in  progress. The Ministry  has also filed a petition/application against   the  individuals, groups   and  their entities   belonging   to  Nirav   Modi   and  Mehul   Choksi   Groups   before  National   Company Law Tribunal, Mumbai   Bench  and  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.

- (c)  To deter  economic   offenders  from  evading   the  process  of  Indian   law   by   remaining   outside   the jurisdiction  of Indian  courts,  Government  has introduced  the Fugitive  Economic  Offenders  Bill,  2018 in Parliament.

Lok Sabha unstarred  question no. 3518,  to be answered on 16 th  March 2018 Details of companies into which investigation  bySerious  Fraud Investigation Office has been ordered

|   S.No. | GINNo.                | Name of Companies                             |
|---------|-----------------------|-----------------------------------------------|
|       1 | U27205MH2006PTC161293 | RadashirJewelry CompanyPrivateLimited         |
|       2 | U31500MH1948PTC006139 | RhythmHousePrivateLimited                     |
|       3 | U36910MH1999PTC122558 | JewelrySolutions International PrivateLimited |
|       4 | U36910MH2004PTC146390 | FirestarDiamondPrivateLimited                 |
|       5 | U36911MH2000PTC124475 | ParagonJewellery PrivateLimited               |
|       6 | U36912MH2000PTC124499 | PanchajanyaDiamondsPrivateLimited             |
|       7 | U51100MH2000PTC123986 | NdmEnterprisesPrivateLimited                  |
|       8 | U51110MH2000PTC123990 | NeeshalEnterprisesPrivateLimited              |
|       9 | U51224MH2007PTC171459 | NeeshalMarketingPrivateLimited                |
|      10 | U51900MH1999PTC118442 | FirestoneTradingPrivateLimited                |
|      11 | U51900MH2000PTC123985 | DreamTradingPrivateLimited                    |
|      12 | U51900MH2000PTC123987 | CamelotTradingPrivateLimited                  |
|      13 | U51900MH2000PTC123989 | NeeshalTradingPrivateLimited                  |
|      14 | U51900MH2000PTC124314 | AmiMerchandisingPrivateLimited                |
|      15 | U51900MH2000PTC124471 | ParagonMerchandisingPrivateLimited            |
|      16 | U51900MH2000PTC124496 | DevdattaEnterprisesPrivateLimited             |
|      17 | U51909MH2004PLC145478 | FirestarInternationalLimited                  |
|      18 | U51909MH2006PTC164429 | FirestarDiamondInternational PrivateLimited   |
|      19 | U52393MH2007PTC168745 | MakBusinessEnterprisePrivateLimited           |
|      20 | U67120MH1988PTC047134 | GhazalahInvestmentsPrivateLimited             |
|      21 | U70100MH1998PTC116420 | CamelotEnterprisesPrivateLimited.             |
|      22 | U70100MH2006PTC160509 | BentleyRealtyPrivateLimited                   |
|      23 | U72200HR2011PTC043300 | CuttingEdge SoftwarePrivateLimited            |
|      24 | U74120MH2014PTC251981 | PaundraEnterprisesPrivateLimited              |
|      25 | U74130HR2006PTC058107 | LoyaltySolutions&ResearchPrivateLimited       |
|      26 | U74140MH2010PTC201410 | SuvadhinathConsultantsPrivateLimited          |
|      27 | U74140MH2010PTC202556 | SupasvanathConsultantsPrivateLimited          |
|      28 | U74140MH2010PTC203147 | NeminathConsultantsPrivateLimited             |
|      29 | U74140MH2010PTC206191 | PunarvasuConsultantsPrivateLimited            |
|      30 | U74900MH2010PTC201990 | AnantnathValuersPrivateLimited                |
|      31 | U74900MH2010PTC201994 | SamkitValuersPrivateLimited                   |
|      32 | U74900MH2010PTC202557 | SambhavnathValuersPrivateLimited              |
|      33 | U74900MH2010PTC202559 | MoolaConsultantsPrivateLimited                |
|      34 | U74990MH2009PTC195900 | AdeshwarDia-jewels PrivateLimited             |
|      35 | U74990MH2010PTC201414 | MoonValuersPrivateLimited                     |
|      36 | U74990MH2010PTC201993 | Vashupujya Valuers PrivateLimited             |
|      37 | U74999MH2007PTC167152 | NeeshalMerchandisingPrivateLimited            |
|      38 | U74999MH2014PTC251904 | Palasa DevelopersPrivateLimited               |
|      39 | U74999MH2017PTC299975 | NiravModiPrivateLimited                       |

| 40    | U99999MH1981PTC024012   | SolarExports Pvt.Ltd.                        |
|-------|-------------------------|----------------------------------------------|
| 41    | L22100WB1941PLC119187   | Biriani.MetalsLtd                            |
| 42    | L29130PN1991PLC062352   | MenonBearingsLimited                         |
| 43    | L36911MH1986PLC040689   | GitanjaliGems Ltd                            |
| 44    | U01100MH1995PLC095425   | NakshatraWorldLimited                        |
| 45    | U03691TZ2004PTC011442   | Shubalavanyaa JewelCraftsPrivateLimited      |
| 46    | U27205TG2004PLC044751   | HyderabadGems Sez Limited                    |
| 47    | U36910GJ1991PTC016127   | LustreIndustriesPrivateLimited               |
| 48    | U36910MH1997PLC111237   | GitanjaliGoldAndPreciousLimited              |
| 49    | U36910MH2004PLC146406   | NakshatraBrandsLimited                       |
| 50    | U36910MH2004PLC148983   | SpectrumJewellery Limited                    |
| 51    | U36911KA2005PTC036413   | MastJewellery Distributions PrivateLimited   |
| 52    | U36911MH2005PLC156266   | GitanjaliJewellery RetailLimited             |
| 53    | U36911MH2007PLC170596   | GitanjaliLifestyleLimited                    |
| 54    | U36911MH2008PLC179818   | MoharJewelsLimited                           |
| 55    | U36912MH1991PTC063290   | ParthaGems PrivateLimited                    |
| 56    | U36912MH1991PTC063291   | PriyankaGems PvtLtd                          |
| 57    | U36912MH1991PTC063293   | RohanDiamondsPrivateLimited                  |
| 58    | U36912MH1992PTC065113   | GitanjaliLaserHousePrivateLimited            |
| 59    | U36912MH1995PTC093747   | GitanjaliImpexPrivateLimited                 |
| 60    | U36912MH2000PTC126053   | Easy DiamondPrivateLimited                   |
| 61    | U45201MH2006PLC165939   | GitanjaliInfratechLimited                    |
| 62    | U45201TZ2007PTC013543   | SangamamHomesPrivateLimited                  |
| 63    | U45208MH2007PLC176915   | AurangabadSez Limited                        |
| 64    | U45208MH2007PLC176916   | RaigadGems Sez Limited                       |
| 65    | U45208MH2007PLC176917   | NandedSez Limited                            |
| 66    | U45208MH2007PLC176918   | Nashik Multi ServicesSez Limited             |
| 67    | U45309MH2018PTC304257   | CuttackLifestyleIndustrialParkPrivateLimited |
| 68    | U51398MH1999PTC121895   | CoronetGems PrivateLimited                   |
| 69    | U51398MH2002PTC136871   | LegacyGoldPrivateLimited                     |
| 70    | U51398MH2003PTC142351   | Bezel Jewellery (India)PrivateLimited        |
| 71    | U51398MH2005PTC157561   | ModaliGems PrivateLimited                    |
| 72    | U51398MH2008PLC186036   | GitanjaliRetailVentures Limited              |
| 73    | U51900MH2006PTC159756   | SneakingMercantilePrivateLimited             |
| 74    | U51900MH2007PLC176914   | NagpurMulti-ProductSez Limited               |
| 75    | U51990MH2000PLC128664   | GitanjaliExports Corporation Limited.        |
| 76    | U52100MH1989PTC054790   | MozartTradingPrivateLimited                  |
| 77    | U52100MH2008PLC180727   | WestBengalSezLimited.                        |
| 78    | U52100MH2008PTC182145   | JoyceTradingPrivateLimited                   |
| 79    | U52393MH2001PLC131428   | GiliIndiaLimited                             |
| 80    | U52393MH2002PTC135231   | CriaJewellery PrivateLimited                 |
| 81    | U64202KA2006PTC038459   | Mobil.enxtTeleservicesPrivateLimited         |
| 82 83 | U65900MH1992PTC065159   | RohanMercantilePrivateLimited                |
|       | U65910MH2006PTC160539   | DecentSecuritiesAndFinancePrivateLimited     |

|   84 | U65990MH1988PTC045911 AudaryaInvestmentsPrivateLimited           |
|------|------------------------------------------------------------------|
|   85 | U65993MH2005PTC1 54132 DecentInvestmentand FinancePrivateLimited |
|   86 | U65993MH2006PTC159754 N&JFinstocksPrivateLimited                 |
|   87 | U65993TN1982PLC009748 RaneInvestmentsLimited                     |
|   88 | U67120MH1988PTC047134 GhazalahInvestmentsPrivateLimited          |
|   89 | U67120MH2006PTC159738 EurekaFinstockPvtLtd                       |
|   90 | U70100MH1989PTC053723 NavirajEstates PrivateLimited              |
|   91 | U70100MH1995PTC090508 GitanjaliRealtorsPrivateLimited            |
|   92 | U70102MH2009FTC195549 DynamicInfrazonePrivateLimited             |
|   93 | U72200MH2000PTC255094 IrealitiesTechnologyPrivateLimited         |
|   94 | U72900MH2007PTC173734 Ivida TechnologiesPrivateLimited           |
|   95 | U74120MH1989PLC054232 JewelsoukMarketplaceLimited                |
|   96 | U74120MH2015PLC261453 VidarbhaMultiProductsSez Limited           |
|   97 | U74300KA2009PTC049762 DigitalBrandsIndia PrivateLimited          |
|   98 | U74900MH2004PTC145922 Trinity ExpositionsPrivateLimited          |
|   99 | U74940MH2007PTC168873 InteractiveEntertainment PrivateLimited    |
|  100 | U74994MH2005PLC157741 AsmiJewellery IndiaLimited                 |
|  101 | U74999MH2003PTC140131 SaruishadelMercantilePrivateLimited        |
|  102 | U74999MH2008PLC187891 MmtcGitanjaliLimited                       |
|  103 | U74999MH2016PTC285757 LjowPrivateLimited                         |
|  104 | U74999MH2017PTC296731 TeamFloatPrivateLimited                    |
|  105 | U74999PN2016PTC166175 FiveElementsAdvisorsPrivateLimited         |
|  106 | U92413MH2008PLC182263 KolkataAxisMallLimited                     |
|  107 | U99999MH2001PLC231441 MayaRetailLimited                          |