Punjab National Bank scam: BDO tasked with finding ‘money trail’

The Hindu Business Line |
Kartik Radia , Partner and Head
Business Advisory Services
|

05 March 2018

BDO India, which has been appointed as a forensic auditor in the Nirav Modi Scam, has been mandated to among other things to find the " money trail" in the Rs 12,700 crore fraud perpetrated on State-owned Punjab National Bank.

"The scope of work includes finding the money trail", said Kartik Radia, Partner & Head-Risk and Advisory Services, BDO India told BusinessLine.

It may be recalled that BDO India had been exclusively appointed (on February 27) to conduct the entire forensic audit in the Rs 12,700 crore fraud on PNB by diamantaire Nirav Modi and his maternal uncle Mehul Choksi. The forensic audit assignment has not been shared or divided between audit firms.

To get the mandate, BDO India participated in a bidding process conducted by PNB. BDO was invited to bid for the assignment along with Big 4 accounting firms.

Interestingly, the scope of work for BDO India does not cover the activities of Mehul Choksi group of companies. The forensic audit will primarily look at Nirav Modi controlled entities-- Firestar International Limited, Firestar Diamond International, Solar Export, Stellar Diamond and Diamond R US.

MEHUL CHOKSI

Meanwhile, Enforcement Directorate has attached 41 properties worth Rs 1,217.20 crore (market value) of Mehul Choksi & companies controlled by him. It includes 15 flats and 17 office premises in Mumbai, Hyderabad Gems SEZ, AP, Shopping Mall in Kolkata, Farm House in Alibaug and 231 acres land in Maharashtra and Tamil Nadu.

PNB DEPOSIT RATES UP

Punjab National Bank (PNB) has increased interest rates on domestic retail term deposits from March 1 this year.

For retail deposits of less than Rs 1 crore, in the maturity bucket of 7-45 days the interest rate has been increased from 5.25 percent to 5.70 percent.

In the maturity bucket of 46 days to less than 1 year, the rate has been revised upwards to 6.35 percent from 6.25 percent.

For the maturity bucket of over 1year and up to 3 years, the revised rate stood at 6.75 percent from 6.5 percent.

PNB has also effected deposit rate increases for domestic bulk term deposits of Rs 1 crore to Rs 10 crore.

Source: https://www.thehindubusinessline.com/news/punjab-national-bank-scam-bdo-tasked-with-finding-money-trail/article22925091.ece