Can't confirm if Nirav Modi is in US: State official
The US has acknowledged reports in Indian media that embattled billionaire Nirav Modi is in the country, but is unable to confirm them, a state department official said. A spokesperson then referred PTI to the Department of Justice, which declined to comment on the matter. Days ago, Modi's Firestar Diamond filed for bankruptcy in the US. Here's the latest in the PNB scam probe.
How India's biggest scam unfolded
Nirav Modi, diamantaire to global celebrities, and uncle Mehul Choksi, Gitanjali Gems chairman, have been accused of defrauding PNB of Rs. 12,650cr. Firms linked to them allegedly acquired fraudulent letters of undertaking (LoUs) from PNB during 2011-17 and based on them, obtained loans from foreign branches of Indian banks. Modi, his family and Choksi left India weeks before the scam was detected last month.
Modi, Choksi were hiding crucial documents at a Wadala chawl
CBI said Modi and Choksi had been using a chawl at Wadala, Mumbai, to hide incriminating documents. Officials raided the place and recovered crucial documents related to the LoUs. According to sources, the chawl wasn't registered to either Modi, Choksi or their businesses.
US court bars creditors from collecting debt from Firestar
Interestingly, Firestar's bankruptcy filing doesn't show PNB as a creditor, though it acknowledged that complaints of "unauthorized loans" led to the petition. It has only mentioned loans worth Rs. 130.36cr from HSBC and Israel Discount Bank. The petition was filed to "preserve the going concern value of their businesses," it says. Passing an interim order, a US court barred creditors from collecting their debts.
Blue Corner notice against Modi and Choksi
Recently, Modi forwarded a 'concrete proposal' for repayment of loans to PNB, offering it jewelry (Rs. 2,000cr), current account deposits (Rs. 200cr) and properties (Rs. 50cr). He said he wants to "resolve the matter" and ensure dues of employees are cleared. The Bureau of Immigration issued a Blue Corner notice against Modi and Choksi. It will be valid till February'19 at all embarkation ports.
41 properties worth Rs. 1,200cr attached
Till now, the ED has attached 41 properties worth Rs. 1,217.2cr belonging to Choksi. These include 15 flats in Mumbai, a farmhouse in Alibaug and a mall in Kolkata. Assets worth over Rs. 6,000cr belonging to Modi and Choksi have also been seized. At least 12 people including PNB employees have been arrested. The ED has directed Modi to appear for questioning next week.
