Liability much less: Nirav’s ‘letter’

MUMBAI: A letter purportedly written by jeweller Nirav Modi, circulating on WhatsApp, claims that the ~11,000 crore liability cited by PNB in a loan fraud case is far higher than what is owed.

Mint couldn’t confirm the authenticity of the letter apparently written to PNB, but a person familiar with Modi’s legal strategy said it could be genuine.

In the letter, Modi, who allegedly left India in January, has appealed to the bank to support his efforts to repay debt. PNB had filed a complaint with the CBI saying two staffers had colluded with firms linked to Modi in illegal transactions that allowed the firms to raise funds abroad.

In a subsequent note to the exchanges, PNB had said the transactions could be worth over ~11,000 crore.

“The media suggests that the liability of the Nirav Modi Group is over ~11,000 crores. As you are aware, this is entirely incorrect and the liability of the Nirav Modi Group is substantially less,” he said.

Even after your complaint was filed, in good faith I wrote to you saying please sell/ allow me to sell Firestar Group (Modi’s flagship company), or their valuable assets, and recover the moneys that may be found due not just from Firestar Group, but also from the three firms.

The valuation of the business was approximately ~6,500 crores which couldhave helped reduce/ discharge the debt to the banking system,” he said.

Diamonds R Us, Solar Exports and Stellar Diamonds are the three companies named in the CBI complaint.

He added that the erroneous reporting led to seizure of operations, which in turn resulted in Firestar International Private Limited and Firestar Diamond International Private Limited effectively ceasing to be going concerns and jeopardized his company’s ability to discharge the dues to banks.

Modi also claimed in the letter that buyers credit facility has been extended by PNB to the three partnership firm over the years and there has been no default.

As part of their investigations, federal agencies have seized seized gold, diamonds and precious stones valued over ~5,700 crore.

“These, and other assets of FIPL/FDIPL and the three firms (including receivables and assets seized) could have settled all the amounts due to banks. However, now that stage appears to have passed, and there is generally panic,” he said.

Modi also said that his brother, wife, and uncle Mehul Choksi, the head of Gitanjali Gems, have been wrongly named in the complaint by PNB.