Gutkha scam: CBI raids residences of TN Minister, DGP
Chennai, Sep 5 : The Central Bureau of Investigation on Wednesday raided several places in Tamil Nadu, including the residences of Health and Family Welfare Minister C. Vijayabaskar and Director General of Police (DGP) T.K. Rajendran in connection with a gutkha scam, said a CBI official.
In April, the Madras High Court ordered CBI to probe the multi-crore gutkha scam in which Minister Vijayabaskar, DGP Rajendran and several other top police and other state government officials were alleged to be involved.
The court ordered the CBI probe on a petition filed by DMK legislator J. Anbazhagan.
The case is related to an Income Tax Department raid in the offices, residences and godowns of a gutkha manufacturer in Tamil Nadu in 2016.
A diary was then seized which listed alleged bribe payments made to various officials amounting to about Rs 39.31 crore.
The Tamil Nadu government has banned the manufacture and storage of gutkha -- a tobacco product. However, the product was reportedly available in the market with the alleged connivance of police officers and others.
Several political parties had demanded the CBI probe into the scam but the AIADMK government did not agree.
In June, the Enforcement Directorate registered a money laundering case under the Prevention of Money Laundering Act against unnamed government officials in Tamil Nadu's gutkha scam based on the first information report (FIR) registered by the CBI in May.
Despite the opposition from the opposition parties Rajendran was given a two year extension in 2018.
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UK court rejects Nirav Modi's fresh bail application: CBI
New Delhi, May 15 (PTI): The High Court of Justice in London on Thursday rejected a fresh bail petition filed by diamantaire Nirav Modi, who is held in a prison there and wanted in India in the Rs 13,000 crore Punjab National Bank (PNB) fraud case orchestrated with his uncle Mehul Choksi, officials said.
Modi approached the court in London on Thursday seeking his release on bail pending the decision on his extradition request, they said.
"Fresh bail petition filed by Nirav Deepak Modi was rejected Thursday by the High Court of Justice, King's Bench Division, London. The bail arguments were strongly opposed by the Crown Prosecution Service advocate, who was ably assisted by a strong CBI team consisting of investigating and law officers who travelled to London for this purpose," the CBI said in a statement here.
Modi, 55, is lodged in a UK prison since March 19, 2019. He is accused of siphoning off Rs 6498.20 crore of the total scam amount.
His extradition has already been approved by the High Court of UK in favour of the Government of India, the agency said.
"This was his 10th bail petition since his detention in the UK, which was successfully defended by the CBI through the Crown Prosecution Service, London," the agency said.
Nirav Modi's uncle Mehul Choksi, a co-accused in the PNB fraud case, was arrested by the authorities in Belgium where he had gone for treatment, it said.
The duo has been accused of siphoning off over Rs 13,000 crore from the PNB using fraudulent letters of undertaking and foreign letters of credit.
Officials at PNB's Brady House branch in Mumbai issued letters of undertaking (LoUs) and foreign letters of credit (FLCs) to their firms without any sanctioned limit or cash margin and without making entries in the bank's central system to evade any scrutiny in case of a default.
LoUs are a guarantee given by a bank on behalf of its client to a foreign bank. If the client does not repay to the foreign bank, the liability falls on the guarantor bank.
Based on the LoUs issued by the PNB, money was lent by the SBI, Mauritius; Allahabad Bank, Hong Kong; Axis Bank, Hong Kong; Bank of India, Antwerp; Canara Bank, Mamana; and SBI, Frankfurt.
Since the accused companies did not repay the amount availed against the said fraudulent LoUs and FLCs, PNB made the payments, including the overdue interest, to the overseas banks, which advanced buyer's credit and discounted the bills against the fraudulent LoUs and FLCs issued by the PNB, the CBI alleged.
