Modi denies US$1.8b bank fraud link
NEW DELHI/MUMBAI: Indian billionaire jeweller Nirav Modi, one of the prime accused in the country’s largest ever bank fraud, denies allegations levelled against him by Punjab National Bank (PNB), said his lawyer yesterday.
“There is nothing, there is nothing in it,” said Vijay Aggarwal, a lawyer representing Modi, referring to the police complaint filed by PNB that alleges that companies linked to Modi and one of his relatives received credit worth nearly US$1.8 billion (RM7 billion) between 2011 and last year using false guarantees supplied by two bank officials.
Indian officials are on the lookout for Modi and his family, who police say left India last month prior to the case being filed.
“Everything is documented,” said Aggarwal of Modi’s dealings with PNB, adding that the stateowned bank had regularly levied fees on its dealings with the jeweller’s firms.
Asked about his legal strategy, Aggarwal said: “Until there is no charge sheet, there is no strategy. When there is a charge sheet, there will be a strategy.”
According to a police complaint by PNB, the two officials at a Mumbai branch of the bank steered fraudulent loans to companies linked to Modi and entities tied to jewellery retailer Gitanjali Gems, which is led by Modi’s uncle Mehul Choksi.
“They are covering themselves up,” said Aggarwal of the complaint. “They want to avoid liability... that is why they are cooking up this story.”
Choksi, who has also left the country, has not commented. Gitanjali, in a stock exchange filing, has denied Choksi’s involvement in the alleged fraud.
Five bank officials, including the two at the Mumbai branch, have been arrested.
The fraud case has stunned financial markets and it sent PNB shares tumbling for a fifth straight trading day yesterday.