Noting the reports about banks clamping down certain impractical rules and procedures for trade finance, affecting both importers and exporters in the wake of the alleged Rs 11,400 crore fraud on Punjab National Bank, Assocham said the letters of credit (LOC) or letters of undertaking (LOU) allegedly misused by the diamond traders are legitimate instruments in global trade.
Investigators asked these officials how the fraud was detected by the bank.
The assets include a farm house in Alibaug (Rs 42.70 crore) near Mumbai seashore, a solar power plant spread over 53 acres of land in Ahmednagar in Maharashtra (Rs 70 crore) and another 135 acre land in Ahmednagar (Rs 2.20 crore), along with other residential and office properties worth Rs 408.82 crore in Mumbai and Pune.
Though India has not yet charged Modi and only suspended his passport as well as his uncle and business partner Mehul Choksi's for four weeks, threatening to take strict legal action in case of his failure to respond to the government's notice.
"With recent false allegations levelled against me of defrauding the PNB Bank and media frenzy, the situation has gone grave, which is turning graver by the day", Choksi wrote in the letter sent to employees on Friday.
"21 immovable properties of Nirav Modi and companies controlled by him, with a market value of Rs 523.72 crore, have been provisionally attached".
A senior branch manager at PNB's Barmer branch in Rajasthan "dishonestly and fraudulently sanctioned and disbursed 26 Mudra loans" between September 2016 and March 2017, causing a loss of Rs 6.2 million to the public sector bank, the CBI has alleged in a case filed on Wednesday.
"The questioning happened in Mumbai", said CBI officer.
Modi along with his wife Ami, brother Neeshal and Mehul Choksi left India in the first week of January before the PNB accused them of committing the fraud.
India's apex bank Reserve Bank of India (RBI) has set an April 30 deadline for all lenders to link the Society for Worldwide Interbank Financial Telecommunications (SWIFT) with their core banking solution (CBS), and to alter a range of other protocols with immediate effect, as fallout from an alleged Rs 11,400 crore fraud at state-run lender Punjab National Bank (PNB) continues to swell.
Absconding diamond exporter Mehul Choksi's lawyer said he is in touch his client, but do know about his location.