Nirav Modi associate Subhash Parab arrested in Cairo

The Central Bureau of Investigation (CBI) has arrested Subhash Parab, a former employee and a close aide of fugitive diamond trader Nirav Modi, in connection with the Rs 13,500 crore fraud at Punjab National Bank (PNB), according to officials. Parab, who had left India after the scam broke in early 2018, was brought back by the CBI from Cairo.

Parab, 50, an employee of Modi’s firm Firestar International Pvt Ltd (FIPL), had earlier claimed that he was in “illegal confinement” of two Egyptian associates of the diamond merchant. In July 2018, Interpol, issued a red notice against Parab, along with Modi under charges of criminal conspiracy, breach of trust, cheating, and dishonestly inducing delivery of property.

Parab, according to the investigators, was in-charge of monitoring incoming and outgoing transactions of six Hong Kong companies that received over Rs 8,200 crore from the letter of undertakings (LoUs) issued by PNB, on behalf of Nirav Modi.

Fraudulent LoUs worth $3,741.93 million (approximately Rs 24,000 crore) were issued to firms allegedly controlled by Modi between 2011 and 2018. Of this, the total current outstanding fraudulent LoUs is $1,015.34 million.

Modi and his uncle Mehul Choksi have been declared fugitive economic offenders. Modi is currently in jail in the UK, while Choksi is currently in Antigua and Barbuda.