Arrested auditor on Nirav Modi case: ‘Pointed out unsecured loans’

Against two other officials of Firestar International, Modi’s company, Manish Bosamiya (the then AGM operations) and Miten Pandya (finance manager), CBI claimed that their roles were related to preparation of applications for alleged fraudulent LOUs.

Accused of Nirav Modi case outside a Mumbai court. Reuters

AN AUDITOR arrested by the Central Bureau of Investigation (CBI) claimed in his defence in court Monday that he had pointed out to “tax authorities” about the unsecured loans in Nirav Modi firms. Sanjaykumar Rambhia, the partner in CA firm Sampat and Mehta in Mumbai, had carried out the audit of Firestar Group of Companies of Nirav Modi and the three firms of Nirav Modi Group-Diamond R US, Stellar Diamond and Solar Exports since 2001, the CBI claimed. While the CBI claimed in its remand application that the financial statements of the three firms for the year ending on March 31, 2017, had shown unsecured loans of Rs 5,100 crore, Rambhia had not raised a red flag.

Rambhia’s defence, however, told the court that he had pointed it out. “I had submitted my report before authorities in March 2017. I have pointed to the tax authorities what I found and what they do is their independent lookout. I have no concern with the conspiracy and cannot be held responsible for the acts of my client,” Rambhia submitted in court through his advocate.

Special public prosecutor A Limosin submitted before the court that the investigators want to confront various documents with the accused. “He (Rambhia) has mentioned in the notes forming part of Financial Statements that during the FY the respective firms have availed Buyer’s Credit for payment of overseas payable for goods on the Letter of Undertaking from local banks. It is also mentioned that the firms have not provided or arranged for any security or guarantee for availing Buyer’s Credit,” the remand application states.

It further says liabilities in this aspect in the Short Term Borrowings column — unsecured loan from bank — is to the tune of Rs 1,700 crore each for the three firms, adding up to Rs 5100 crore from the single branch (Brady House) of a single bank (PNB). The CBI claimed that Rambhia was ‘duty bound’ to check the background of the unsecured loans.

Against Shivaraman Nair (51), the CBI claimed he was one of the authorised signatories for Gitanjali Group of companies in the applications for issuance of LOUs, which were being handed over to PNB officials. Nair claimed he was only the signatory and had signed on the application at the behest of Vice President (Banking Operations) and that he was unaware of the underlying transactions. Against two other officials of Firestar International, Modi’s company, Manish Bosamiya (the then AGM operations) and Miten Pandya (finance manager), the CBI claimed that their roles were related to preparation of applications for the alleged fraudulent LOUs.

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