Nirav Modi

“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 Central Bureau of Investigation, they used these to borrow money overseas, ostensibly to buy diamonds and pearls. It isn’t clear what the money was used for; when the loans became due, Modi and Choksi got fresh letters of undertaking issued, and borrowed more against these, part of which they used to settle their old loans. The cycle snapped when the employee facilitating these letters retired, and the new PNB