CBI: VIPUL AMBANI CREATED DISPROPORTIONATE ASSETS
Says CFO complicit in defrauding PNB
Sources in the Central Bureau of Investigation claimed the agency has strong evidence to make a water-tight case against Vipul Ambani, president–finance, Firestar International, in the ~114-billion Punjab National Bank (PNB) fraud case.
According to the sources, the central agency is in possession of information showing Ambani’s assets are disproportionate to his known sources of income.
According to a senior CBI official, Ambani’s assets are being examined and if the allegations are proved, the assets could be seized.
“Documents revealed he has created substantial assets in the past three-four years, soon after he joined Nirav Modi's group of companies,” he said. Ambani had joined the Modi firm in April 2014.
“He was not only aware of the fraudulent letters of undertaking (LoUs), but evidence showed he was also in connivance with the accused PNB officials, especially Gokulnath Shetty (deputy manager at PNB, now retired) and his team,” said a source.
Ambani was arrested by the CBI on Tuesday with two other executives — Kavita Mankikar and Arjun Patil — in connection with the case it registered, involving eight fraudulent transactions worth at least ~2.8 billion. Based on further complaints from the bank, the CBI said the fraud could be as large as ~64.9 billion, involving 150 LoUs.
A special court on Wednesday remanded Ambani and his executives CBI custody till March 5.
In the remand copy, which the CBI had produced before the special court, another official said, the probe agency had accused Ambani as CFO and of being aware of the transactions with PNB. The CBI said it found applications of the fraudulent LoUs made to PNB in Firestar’s office.
The official said Ambani failed to give an answer or denial that he was not looking after the affairs of Modi’s firms.
The CBI in its remand copy alleged that the LoUs were being prepared on Firestar premises and that not protesting the issuance of such fraudulent LoUs was a deliberate act of omission. “The facts prove his part in this conspiracy to cheat PNB,” the remand copy said.
However, Amit Desai, counsel for Ambani, who appeared in the court on Wednesday, refuted the allegations and said his client had no connection with the three Modi firms as alleged by the CBI. He argued Ambani had been sitting in the CBI office since last Sunday with all information sought.
So far, the CBI has arrested 11 people and searched at least dozen premises and residences of Modi and bankers.