PNB hires detectives to find Nirav Modi and uncle

With the loan frauds coming to light and the assets being seized by the authorities, defaulters – Modi and Choksi are on the run.

After taking Rs 13,000 crore hit in the fraud involving jewelers Nirav Modi and Mehul Choksi, Punjab National Bank (PNB) has now decided to employ the services of detective agencies to trace vanishing defaulters and their assets.

PNB on Wednesday invited applications to impanel detective agencies with an aim to “significantly supplement efforts of the field officials in recovering bank’s dues in NPA accounts by utilizing services of the detective agencies”, it said.

Interested parties have been asked to file applications and relevant documents by May 5.

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This is not the first instance of a bank employing the services of private detectives. Many nationalized banks including Indian Bank, Syndicate Bank, and Corporation Bank have used new age Sherlock Holmes to trace defaulters and their assets.

PNB has wilful defaults of Rs 12,574 crore involving 1,018 borrowers as of December 2017, according to the latest data available from CIBIL. “Many of the borrowers have gone missing after taking the loans. Banks have no idea about their assets or collateral. After taking the loan, borrowers divert the money to real estate or other businesses, details of which are not revealed to the lender,” said a senior banker.

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On impaneling detectives, PNB said the policy aims to significantly supplement efforts of the field officials in recovering bank’s dues in NPA accounts. Their job will include locating the borrower, co-borrower, guarantor, and mortgagors, in and outside India, including their legal heirs who are either untraceable or not available at the addresses given in the bank’s records. They will have to ascertain latest information about their present addresses, occupation, businesses, income streams, details of their all assets, whether charged or uncharged, their location (whether in India or abroad) and value and ownership.