Nirav Modi firms may not have financials to match PNB fraud magnitude

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The agency has seized two servers from the premises of the accused diamond businessmen, and the imaging of the same is being analysed to trace the complicity of the bank officials with the alleged fraudsters, sources said.

It later came to light that two junior employees at the Mumbai Branch of the Bank had helped the companies of Nirav Modi and his uncle Mehul Chowksi.

Sources said PNB has also informed CBI of an additional potential loss of close to Rs 3,000 crore through issuance of LoUs to companies related to Choksi. Since they had no pre-arranged credit limit, the branch official asked the companies to put down the full amount as collateral so that the bank could issue the Letters of Undertaking (LoUs) to authorize the credit. Neeshal, his brother, who is a Belgian citizen left on the same day while Modi's wife Ami - a USA citizen, left on 6 January, the IE report said, quoting an official.

Investigators had earlier said that Modi and Choksi left the country a day after Shetty's retirement.

U.S. tourist arrested in Japan after severed head found in apartment
Asahi .com reports that the man was already in custody after the woman, a 27-year-old office worker, disappeared. The head was discovered by police in an apartment building that the man was renting in Osaka.

Meanwhile, Modi, his wife Ami, and Choksi have been summoned by the Enforcement Directorate (ED) to appear at its zonal office in Mumbai tomorrow.

"Frauds of such magnitude and scale - PNB fraud Rs 11,400 crore and OBC fraud Rs 390 crore - has forced us to consider substantially much higher risk cover than the basic banker's indemnity policy which various banks have right now", a top public sector bank official said. "The questioning is now on in Mumbai and details will be made available only later", said a senior CBI official, requesting anonymity. "This has been done before we write to court for issuing LRs to countries like Hong Kong, Belgium, Dubai, Bahrain where these branches are located", said an official. While the assets attached in the expensive Opera House and Kalaghoda are in Mumbai in the name of Firestarter Diamond International Private Limited a Modi's diamond firm.

The total assets seized by the ED in this case are now over Rs 6,393 crore, officials had said, adding that this was being independently valued.

Managing Director Sunil Mehta and Executive Director KV Brahmaji Rao in Mumbai in connection with Rs 14,000 crore fraud case even as the ED attached 21 immovable properties worth Rs 523.72 crore of one of the accused diamantaire Nirav Modi and companies controlled by him under the Prevention of Money Laundering Act (PMLA).

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