CBI books billionaire Nirav Modi in Rs 280 crore cheating case

Representational PictureThe CBI has booked diamond merchant Nirav Modi his brother wife and a business partner for allegedly cheating the Punjab National Bank PNB of over Rs 28070 crore in 2017 officials said The agency had recently carried out searches at 21 locations including the residence of Modi his brother Nishal wife Ami and Mehul Chinubhai Choksi all partners of Diamond R US Solar Exports and Stellar Diamonds and two bank officials Gokulnath Shetty now retired and Manoj Kharat also named in the FIR as accused the officials saidThe searched locations included the offices and SEZ units of these companies in Mumbai and Surat they added A response to an email sent to wwwniravmodicom seeking comments on the alleged cheating case said This matter has no affiliation legal or otherwise with Firestar International Limited which is the flagship enterprise of Mr Nirav ModiModi 46 who had figured in the Forbes list of richest Indians has been named in the cheating case on a complaint from the PNB which alleged that the jewellery firm owner his brother wife and Choksi entered into a criminal conspiracy with the officials of the bank and cheated it causing a wrongful loss they said The public servants committed abuse of official position to cause pecuniary advantage to Diamond R US Solar Exports Stellar Diamonds and a wrongful loss of Rs 28070 crore to the Punjab National Bank during 2017 the FIR has allegedCommenting on the development the PNB in a late night statement said the bank rejected the request for rollover of loans and decided to inform the regulator and CBI for investigation and booking of culprits The bank will take all necessary steps to ensure zero tolerance towards such activities by its employees and customers it said adding the bank is committed to pursue the clean banking and reforms agenda of the government Modi whose diamond jewelleries have been worn by international celebrities has been charged by the CBI under the Indian Penal Code IPC sections related to criminal conspiracy cheating and the Prevention of Corruption Act an official saidThe bank has alleged in the complaint that a fraudulent issuance of Letters of Undertakings LOU took place on January 16 2018 for and on behalf of the accused firms which approached the bank and presented a set of import documents to the branch with a request to allow buyers credit for making payment to overseas suppliersThe bank officials requested the firms to furnish 100 per cent cash margin for LoU for raising buyers credit The firms contested this saying they availed this facility in the past also the complaint now a part of the FIR has alleged However branch records did not reveal the details of any such facility granted to the said firm it said The bank claimed that its deputy manager now retired Gokul Nath Shetty and Manoj Kharat had fraudulently issued the LoUs without following the prescribed procedure of obtaining request applications documents and approval of authorities and without making any entries in the banks systemsThe banks said they fraudulently issued eight LOUs totalling USD 442 crore equivalent to Rs 28070 crore for Hong Kongbased branches of the Allahabad Bank and the Axis Bank The bank alleged that it was making an in depth inquiry to find out outstanding LOUs which were not detected in its system While tracing old entries it transpired that buyers credit based on fake LOUs might also have been paid through NOSTRO AC it alleged Claiming that public money to the tune of Rs 28070 crore seems to have been embezzled by committing fraud the bank asked the CBI to register the caseCatch up on all the latest Mumbai news current affairs from Mumbai local news crime news and breaking headlines hereDownload the new midday Android and iOS apps to get updates on all the latest and trending stories on the go