Diamond merchant cheated PNB of Rs 281 crore: CBI FIR

NEW DELHI: The CBI has filed a case against billionaire diamond merchant Nirav Modi, his wife Ami Nirav Modi and brother Nishal Modi among others for allegedly cheating Punjab National Bank of almost Rs 281 crore in 2017.


After filing a case, the agency teams carried out searches at 21 locations, including the residence of Modi, his brother Nishal, wife Ami and

Mehul Chinubhai Choksi

, all partners of Diamond R US, Solar Exports and Stellar Diamonds, and two bank officials Gokulnath Shetty (now retired) and Manoj Kharat, also named in the FIR as accused.

The searched locations included the offices and SEZ units of the companies in Mumbai and Surat, sources said.

Modi, 46, who had figured in the

Forbes

's list of richest Indians, has been named in the cheating case on a complaint from PNB, which alleged that the jewellery firm owner, his brother, wife and Choksi, entered in criminal conspiracy with officials of the bank and cheated it, causing a “wrongful loss”.

“The 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 PNB during 2017,” the FIR has alleged.

Modi, whose designs have been worn by international celebrities, has been charged by the CBI under Indian Penal Code sections related to criminal conspiracy, cheating and provisions of Prevention of Corruption Act against the four, an official said.

In a statement, PNB said that after unearthing the alleged fraudulent activities, it rejected the request for rollover of facilities and decided to inform the regulator and CBI for investigation and booking of the culprits. “The bank will take all necessary steps to ensure zero tolerance of such activities by its employees and customers,” it added.

The bank has alleged in the complaint that a fraudulent issuance of letters of undertakings took place on January 16, 2018 for and on behalf of the accused firms, which approached the bank and presented a set of import documents to the branch with a request to allow buyers' credit for making payment to overseas suppliers.