PNB writes to Nirav, says ‘your brand was built with our money’

NEWDELHI: Punjab National Bank has dismissed a settlement offer from jeweller Nirav Modi, accused of perpetrating a ₹12,600crore fraud on the state-owned lender, and asked him to pay the entire amount owed it immediately. It has also denied charges that by moving against him legally it has diminished the value of his brand.

In a February 26 e-mail, the billionaire designer offered jewellery worth ₹2,000 crore, current account deposits of ₹200 crore and immovable properties of ₹50 crore to settle part of his liabilities. The bank responded strongly last week through an e-mail that has been seen by Hindustan Times.

“You are aware of the amount of fraud committed by you and yet you propose to pay a paltry amount with no proposal or ability to pay the remaining amount. Your recent alleged proposal to repay some amount is vague and only an effort to gain time by adopting delaying tactics,” PNB general manager Ashwini Vats wrote in a response to Modi.

Modi, his maternal uncle Mehul Choksi, and their companies and associates are accused of perpetrating a fraud on PNB by conspiring with venal bank employees to get letters of undertaking (a sort of bank guarantee) issued.

According to the CBI, they used these to borrow money overseas, ostensibly to buy diamonds and pearls. It isn’t clear what the money was used for.