Modi and his firms have now come under the scanner of multiple investigating agencies such as the ED, CBI, income tax and the government’s serious fraud investigation office in connection with the alleged Rs 13000 crore PNB Fraud.
“At the cost of repetition, I state that I had earlier expressed my apprehension and concern for my family’s and my safety. The threat to me and my family continues, and I am still being threatened by individuals with whom I had business relationships,” says Mehul Choksi.
Top public sector bankers meet to assess situation, confirm genuineness of the remaining LoUs.
Once an RCN is issued, the Interpol seeks to arrest the person concerned in any part of the world and notifies that country to take his or her custody for further action.
The maximum punishment for the offence under section 409 (criminal breach of trust by public servant, or by banker, merchant or agent) of the IPC is life imprisonment.
In a statement, CII President Shobana Kamineni said the move would have a “disruptive impact” on the buyers’ credit market, in the immediate term. “The traders who have been conducting business through these two instruments will now have to necessarily shift their transactions to Letters of Credit and bank guarantees,” said Kamineni.
Officials said the agency had sought issuance of the Interpol warrant against the two, based on court-issued non-bailable warrants obtained by it in a money laundering case.
The RBI, in a notification to all banks, said it has decided to discontinue the practice of issuance of LoUs and letters of comforts (LoCs) for trade credits for imports into India by banks with immediate effect.
The list of seized properties includes a 6,000 sq ft farmhouse and land at Alibaug in Maharashtra, currently valued at Rs 42.70 crore. According to records, Nirav Modi Trust is the owner of the land since October 2003.
This takes the fraud amount, as per the CBI, in both cases involving Choksi and his nephew Nirav Modi to above Rs 13,580 crore.
Diamond merchant Nirav Modi is allegedly the key person behind the Rs 12,700 crore scam at the Punjab National Bank. Modi, his associates and related companies are under the regulatory scanner.
One does hope that the legal system will address its own deficiencies and we wont see another display of public anguish from those who are tasked with dispensing justice in a timely manner.
In its complaint, now part of the FIR, the bank alleged that it came to its notice that credit facilities were not used for the purpose — packing credit, guarantees etc — for which they were given.
The Fugitive Economic Offenders Bill, 2018, will empower the government to confiscate any property owned by such persons in India.
Last month, Surat woke up to a rude shock of over Rs 12,000 crore bank fraud, allegedly carried out by two of their own big names in diamond trade — Nirav Modi and Mehul Choksi. A month later, Kamaal Saiyed, tries to find out if the fraud has made the world’s largest diamond cutting and polishing hub any less brighter.