Bank Fraud Probe: India’s Bureau files fresh charges against billionaire Nirav Modi

India’s Central Bureau of Investigation on Thursday filed fresh case against billionaire jeweller Nirav Modi and top officials of his companies in connection with the country’s biggest-ever bank fraud of 1.8 billion dollars.

“This is the third information report (FIR) lodged against Modi and top executives of his Firestar group for defrauding the state-owned Punjab National Bank by availing different credit facilities between 2013 and 2017,” a senior official said Thursday.

The official said an FIR is the first and the most important document to initiate criminal proceedings. And all the three FIRs have clearly established the fraud of 1.8 billion U.S. dollars.

Modi is yet to be arrested by Indian investigators who have so far taken into custody nearly 20 people, including some senior executives of companies owned by the jeweller and his uncle Mehul Choksi as well as high-ranking officials of the Punjab National Bank, in the probe.

India’s External Affairs Ministry has revoked Modi’s passport as well as his uncle and business partner Mehul Choksi’s for their involvement in the scam.

Also, law enforcement authorities have seized 10,000 luxury watches and nine luxury cars, apart from freezing his bank accounts.

Modi is said to have defrauded Punjab National Bank, India’s second largest state-run bank, of 1.8 billion dollars, though he has said that he owed the bank only 775 million dollars, in a letter shot to the bank’s management.

The celebrity jeweller, the mastermind of the massive fraud, is said to have fled the country and was reportedly last seen in New York after his appearance at World Economic Forum in Davos as a part of an Indian delegation.
NAN reports that on Feb. 24, authorities seized over 10,000 imported luxury watches belonging to disgraced Modi and his firms.

“All the luxury watches were meant for sale through Modi’s jewellery stores across India.

“Earlier, we froze shares and mutual funds of Modi and also seized his nine luxury cars include Porsche Panamera, Rolls Royce Ghost and Mercedes Benz,” said the official.

Modi is said to have defrauded Punjab National Bank, India’s second largest state-run bank, of 1.8 billion dollars, though he said that he owed the bank only 775 million dollars, in a letter sent to the bank’s management.

Investigators have so far arrested 12 people, including high-ranking bank officials, for their alleged involvement in the fraud.

The jeweller, the mastermind of the massive fraud, is said to have fled the country and was reportedly last seen in New York after his appearance at the World Economic Forum in Davos as a part of an Indian delegation.

Though India has not yet charged Modi and only suspended his passport as well as his uncle and business partner Mehul Choksi’s for four weeks, threatening to take strict legal action in case of his failure to respond to the government’s notice.