Mumbai, Feb 5 (The Indian Express): The CBI on Monday booked billionaire diamond jeweller Nirav Modi, his wife, brother and his maternal uncle Mehul Choksi in connection with a Rs 280 crore cheating case after it received a complaint from the Punjab National Bank (PNB) on January 29.
The FIR registered by the CBI said a few public servants “committed abuse of official position to cause pecuniary advantage to Diamond R US, Solar Exports, Stellar Diamonds and wrongful loss of Rs 280.70 crore to Punjab National Bank during 2017”. Modi, his wife, brother, and Choksi are all partners of these three firms, the CBI FIR said.
According to the PNB complaint, two of its employees had “fraudulently” issued eight letters of undertakings (LoUs) and “transmitted SWIFT instructions to the overseas branches of Indian Banks” to raise buyers credit of Rs 280 crore for Modi’s firms without “making entries in the bank system”. The bank has requested the CBI to issue a look-out notice against all of the alleged accused to ensure that they do not leave the country “to avoid the process of law”.
Earlier, in January 2017, the Income Tax department had raided over 50 offices and residential premises of Modi, one of India’s top diamond merchants, and seized cash, jewellery and several documents that allegedly revealed tax evasion by his firms.
The agency had allegedly found evidence of bogus purchases and cash sales that were not recorded in the books of the firms. It had also surveyed the offices of Gitanjali Group — one of the largest diamond companies in India and a listed jewellery retailer promoted by Choksi — in connection with the investigation. Modi, who grew up in Antwerp in Belgium, worked closely with Choksi for about 10 years.
A recent entrant to the billionaire club, Modi was named in the Forbes India’s Richest People List 2016, with a net worth of $1.74 billion. Modi is known for his high-value jewellery that cost as much as Rs 50 crore and regularly features at auctions conducted by houses like Christie’s and Sotheby’s. In 2010, Modi’s Golconda necklace sold for Rs 16.29 crore at a Christie’s auction.