Bulls & Bear Hfund of India

There is a provision of bank guarantee known as letter of undertaking (LOU) under which a bank allows its customer to raise money from another Indian bank's foreign branch in the form of a short term credit. The LOU serves the purpose of a bank guarantee.  However, to be able to raise the LOU, the customer is supposed to pay margin money to the bank issuing the LOU and accordingly, he is granted a credit limit. But in Nirav Modi's case, neither was there a credit limit, nor did he ever give any margin money, reported Reuters. Nirav Modi, via his three firms, Diamond R Us, Solar Exports and Stellar Diamonds, managed to pay to its suppliers of rough stones on a regular basis. The payment was made through the loans by banks including Axis Bank, and Allahabad Bank. The loans were raised by Nirav Modi's firms on showing the letters of undertakings issued by the PNB. Incidentally, there was no official record of such letters of undertaking in the PNB records as the bank disc...

The ED conducted searches at 10 locations which were not raided by the CBI, a source privy to the information in the Rs 11,000-crore fraud case told Moneycontrol. Investigations in the PNB-Nirav Modi fraud case intensified on Thursday with Enforcement Directorate (ED) conducting searches and sealing some premises owned by Nirav Modi and Gitanjali Gems. The ED conducted searches at 10 locations which were not raided by the CBI, a source privy to the information in the Rs 11,000-crore fraud case told Moneycontrol. The locations spanned primarily on west India — five in Mumbai, three in Surat and two in Delhi. The searches led to seizure of diamonds and jewellery and the ED will begin the valuation process soon, the source said. Besides, some properties have been sealed as well. The ED will also examine whether the Rs 11,000 crore amount disclosed by Punjab National Bank in the case is true. The agency will also question senior PNB officials as it suspects that a fraud of...

The mega healthcare plan for the poor, as announced in the Budget, will cost about Rs 1,00,000 crore annually and curtail states' autonomy to design their own policies in the sector, says a research paper, authored by a professor at economic think tank NIPFP. The paper's estimate is 10 times higher than the one made last week by Niti Aayog adviser Alok Kumar, who had said that the National Health Protection Scheme (NHPS) will cost around Rs 10,000-12,000 crore annually. National Institute of Public Finance and Policy (NIPFP) Assistant Professor Mita Choudhury said in the paper -- 'The National Health Protection Scheme in the Union  Budget 2018 : Is it in the Right Direction?' -- that resource requirements for implementing NHPS are likely to be very high. Not only would such a scheme impose a heavy burden on both the Union and the states' exchequers, it will also curtail states' autonomy to design their own policies in a sector that is constitutionally ma...