PNB to Nirav Modi: 'Come With Concrete Plan to Pay Dues'

Officials of Mumbai’s Brady House branch of PNB without approvals issued so-called letters of undertaking or LoUs  that helped Modi’s companies raise credit from other banks

PNB fraud: Nirav Modi blames bank's 'haste' for fiasco; top 10 developments

The Enforcement Directorate on Thursday seized mutual funds and shares worth Rs 100 crores of the Nirav Modi and Mehul Choksi groups in connection with its money-laundering probe into the case.

The vehicles include one Rolls Royce Ghost, two Mercedes Benz GL 350 CDIs, one Porsche Panamera, 3 Honda cars, one Toyota Fortuner and one Toyota Inn. It is alleged that Rs 11,400 crore of LOUs were fraudulently issued to the firms of Nirav Modi and Choksi.

On Wednesday, ED teams raided four locations at Opera House, Peddar Road, Goregaon (East) and Powai in Mumbai besides searches in other cities.

The CBI said that as per its probe so far, two of the arrested accused - Kapil Khandelwal, CFO, Nakshatra Group and Gitanjali Group, and Kavita Mankikar, executive assistant and authorised signatory of three accused firms - are directly linked to the case.

Stating that such notifications are sent to addresses or emails, he said that in this particular case the notification has been sent to an email in India that Modi has shared with the authorities.

The CBI filed the first FIR against Diamond R Us, Solar Exports and Stellar diamond whose partners have been named as Nirav Modi, his brother Nishal, uncle Mehul Choksi and wife Ami- who left the country earlier in early January. The scam involves bank officials allegedly handing out fake Letters of Undertaking on behalf of companies associated with him, which allowed him to access massive foreign exchange loans that were completely unsecured. Meanwhile, the PNB filed a second complaint with the Central Bureau of Investigation (CBI) on February 13. In addition, the Income Tax department has attacked assets worth Rs 145 crore. The cumulative credit balance in these accounts were about Rs 145.74 crore.

The statement came in response to Mr. Modi's charge that the PNB had closed all options to recover dues by going public with the fraudulent deals.

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When the alleged illegal dealings of of Modi surfaced, the bank brought them to the notice of the law enforcement agencies as they apparently violated FEMA and anti-money laundering law, sources said.

Choksi is Modi's uncle and promoter of the Gitanjali Gems group and other jewellery brands.

His lawyer says Mr Modi, who calls himself a "haute diamantaire", has not absconded but is overseas on business.

The bank also reiterated that it has enough assets, capital to meet any liability decided as per law.

The modus operandi and the role of three top Modi's employees into the scam has still not yet been established by the CBI following which the agency sought 14 days reamed.

Separately, Modi has accused Punjab National Bank of having "jeopardised" his ability to pay the bank back the dues - by making this case public, according to a report in business daily Economic Times which cited news agency PTI.

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