PNB Scam:Billionaire jewellery designer Nirav Modi is now in NY?

PNB Scam:Billionaire jewellery designer Nirav Modi is now in NY?

PNB Scam:Billionaire jewellery designer Nirav Modi is now in NY?

The billionaire diamond merchant, a regular on the lists of rich and famous Indians since 2013, was booked by the CBI, along with wife, brother and Choksi on January 31, for allegedly cheating the state-run PNB to the tune of Rs 280 crore.

The ruling Bharatiya Janata Party denied any link with Nirav Modi, who is not related to India's Prime Minister. Modi and Choksi are two of the prime accused in the Rs 11,300-crore PNB fraud case. The ministry has issued strict instruction to all banks that no big fish should go scot free and no honest borrower is harassed, bank officials said.

It has been that Modi - whose operations are spread across Europe, the U.S., Middle East and Far East, as well as India - has written to PNB and other banks saying he would return thee outstanding money.

The case in point was that of billionaire diamond jeweller Nirav Modi who left the country on Jan 1 this year. It has also asked the Enforcement Directorate (ED), which investigates frauds involving foreign currency and transactions, to probe the matter.

"The stock worth Rs 5100 crore including gold & diamond jewellery, precious stones etc recovered during the searches were seized under PMLA", the agency said in a statement.

PNB first notified India's Central Bureau of Investigation (CBI) of its discovery in late January, and on Monday it issued a "caution notice" to warn other lenders about the suspected fraud.

The employees are under investigation, CEO Sunil Mehta said at a press conference.

Modi's jewellery stores and other business establishments were raided by law enforcement officials in Mumbai and New Delhi on Thursday, Reuters witnesses said. Forbes now ranks him as India's 85th richest man with a net worth of $1.74 billion.

The question as to why the PNB did not send a complaint to the CBI and made a decision to give it in tranches is also under the scanner of the agency, they said.

It all started around mid-January, when three firms - M/s Diamonds R USA, M/s Solar Exports, M/s Stellar Diamonds - approached the bank for "buyers credit" to make payments to overseas suppliers. "Nirav Modi had arrived in Davos on his own and was present at CII group photo event", claimed Prasad.

"The Prime Minister had said in the Lok Sabha that our government has not given any loans that have become NPA (Non Performing Assets)".

Modi, the son and grandson of diamantaires, grew up in Antwerp, according to his website.

Technically, the bank could have stopped payment - these were actually short term loans, called buyer's credit - at any time on the "letters of undertaking" (LoUs) that it and Modi had signed, allowing Modi to pick up raw diamond from sellers overseas.

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