DOHA: The Central Bureau of Investigation (CBI) said it was acting on a complaint from the Punjab National Bank that Nirav Modi and others had conspired with bank officials to fraudulently obtain advances for making payments to overseas suppliers.
A spokeswoman for Nirav Modi declined to comment.
The CBI’s announcement of an investigation and registration of a complaint mark some of the early stages in an inquiry and do not mean the case will ever go to trial.
The bank alleged that Modi, his brother Nishal, wife Ami and Mehul Chinubhai Choksi, all partners of Diamond R US, Solar Exports and Stellar Diamonds, conspired with officials of the bank and cheated it, causing ‘wrongful loss, CBI officials said.
‘The public servants committed abuse of official position to cause pecuniary advantage to Diamond R US, Solar Exports and Stellar Diamonds and wrongful loss of Rs280.70 crore to Punjab National Bank during 2017, the FIR has alleged.
The 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 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 suppliers.
The bank officials requested the firms to furnish 100% cash margin for LOU for raising buyers’ credit.
The firms contested this, saying they availed this facility in the past also, the bank alleged.
However, branch records did not reveal details of any such facility granted to the firms, it said.
The bank claimed that its deputy manager Gokul Nath Shetty and Manoj Kharat had fraudulently issued LOUs without following the prescribed procedure by obtaining the required request applications, documents and approval of authorities and without making any entries in the bank’s systems.
According to Forbes, Modi has a net worth of $1.84bn through his jewellery design and retail businesses, making him the 85th richest person in India.
The bank had filed a complaint saying public money ‘seems to have been embezzled by committing fraud, the CBI said.
CBI spokesman Abhishek Dayal said raids were conducted over the weekend at 21 locations linked to companies of Modi and others accused in the case.
Modi’s residence was also searched, Dayal said.
Modi’s flagship diamond retail firm, Firestar International Limited, released a statement saying the case ‘has no affiliation, legal or otherwise with the company.
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