PNB fraud: CBI tightens noose around Nirav Modi

New Delhi: Noose around diamantaire Nirav Modi and owner of Gitanjali Gems Mehul Choksi seems to be tightening as the CBI is preparing to send judicial requests to five countries to seek more information about their overseas business activities.

Sources said the agency will soon approach a competent court for sending these judicial requests or letters rogatory (LRs) to the authorities concerned in five countries. The agency may send LRs to the USA, Hong Kong, the UAE, South Africa and Singapore, they added. A Mumbai court recently allowed another Central probe agency — Enforcement Directorate — to send LRs to six countries in connection with the case. The ED is also investigating the case.

A letter rogatory is a formal request from a court to a foreign court for judicial assistance.  

“The duo have spread their business operations in various countries. They had got issued multiple high value letters of undertaking (LoUs) in favour of their firms from PNB, which resulted in disbursement of funds as per the SWIFT messages sent by PNB”, sources said.

The CBI has so far registered total three FIRs pertaining to the PNB fraud case. The agency in its fresh FIR alleged that Mr Modi and his firms had also misused legitimate loans and guarantees in active connivance with two former PNB officers. The CBI registered its third case against jeweller in connection with the alleged fraud in credit facilities extended by PNB, causing a loss of `321 crore to it. The action was taken on a complaint by the bank on March 4.