Law firm faces CBI probe in PNB fraud
Nirav Modi’s aides packed cartons of documents and sent them to CAM’S office in Mumbai: CBI
MUMBAI/NEWDELHI:INDIA’S largest law firm, Cyril Amarchand Mangaldas (CAM), is being scrutinized by federal agents after they seized documents related to the $2 billion fraud at state-run Punjab National Bank (PNB) from CAM’S premises in February, a lawyer representing the government and a police official aware of the development told Reuters.
In what has been dubbed as India’s biggest bank fraud, PNB in January alleged that billionaire diamond jeweller Nirav Modi and his uncle, Mehul Choksi, had for years fraudulently raised billions of dollars in foreign credit by conspiring with staff at the bank.
In mid-february, Nirav Modi’s aides packed cartons of documents at one of his diamond firm’s offices in Mumbai and sent them to CAM’S office nearby, from where police seized them within a week on February 21, a review of the Central Bureau of Investigation’s (CBI) court filings and witness testimonies showed.
K Raghavacharyulu, a prosecution lawyer in the Nirav Modi case, and two CBI officials who declined to be named, said CAM possessed documents detailing Nirav Modi’s dealings with PNB, even though the firm wasn’t representing the diamond magnate or his firms.
“CAM was not their attorney in the PNB fraud case, 100% sure ... that’s why they could not cite attorney-client privilege,” Raghavacharyulu said, adding that his assessment was based on regular briefings he received from CBI investigating officers.
CAM declined to comment on its relationship with Nirav Modi, who is on the run overseas. Its spokeswoman, Madhumita Paul, said the firm “strictly follows the legal best practices and does not comment on matters that are subjudice or are under investigation”.
In CBI’S first charge sheet in May in the fraud case against Nirav Modi and others, the agency said that “incriminating documents/articles relevant to the case” were concealed in the office of CAM. No charges were brought against the law firm and it was not named as a witness in the case.
Since then, Raghavacharyulu said, police have not interviewed any CAM official in the case, though one CBI official said that before filing the first charge sheet, police summoned, questioned and recorded the statement of at least one junior CAM lawyer.
That statement has still not been produced in court because the agency is deliberating whether to charge the law firm for concealment of evidence or name it as a prosecution witness to testify against Nirav Modi, the official said.
Raghavacharyulu said it is possible the police could bring charges against CAM for helping conceal documents. “Who told you we are not going to charge them?” he said. “The possibility of naming CAM in the next Nirav Modi case charge sheet has not been ruled out.”
CAM declined to comment on the possibility of being charged or being named as a witness.