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Nirav Modi denies PNB allegations, claims dues much less and seizure of operations jeopardise repayment

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Nirav Modi denies PNB allegations, claims dues much less and seizure of operations jeopardise repayment

[vc_row][vc_column][vc_column_text]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), his lawyer said Tuesday.

Modi himself was reported to have written to PNB, saying he and his family members have been wrongly accused, claiming that the total dues were much less than alleged by the bank and saying that his companies have ceased to be going concerns because of search and seizures and jeopardised his ability to repay the dues.

Vijay Aggarwal, a lawyer representing Modi, told Reuters, “There is nothing, there is nothing in it,” referring to the police complaint filed by PNB alleging that companies linked to Modi and one of his relatives received credit worth nearly Rs 11,400 crore between 2011 and 2017 using false guarantees supplied by two bank officials.

The lawyer refused to disclose Modi’s whereabouts. Modi reportedly left the country before the complaint was filed and case registered. The CBI has put out a look out notice for him.

Talking about Modi’s dealings with PNB, Modi’s lawyer said, “Everything is documented,” adding that the state-owned bank had regularly levied fees on its dealings with the jeweller’s firms.

About his legal strategy, Aggarwal said: “Until there is no chargesheet, there is no strategy. When there is a chargesheet, there will be a strategy.”

In its police complaint, the PNB alleged that 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.

Aggarwal dismissed the charge: “They are covering themselves up. 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, reported The Hindustan Times (HT).

Modi wrote a letter to the bank’s management on February 15/16, according to PTI, blaming the bank for damaging his business and stating that his dues were much less than what the bank claimed.

“In the anxiety to recover your dues immediately, despite my offer (on February 13, a day before the public announcement, and on 15) your actions have destroyed my brand and the business and have now restricted your ability to recover all the dues leaving a trail of unpaid debts,” he said.

PNB, the second largest state-run bank, had on February 14 informed the exchanges of detecting USD 1.77 billion fraud at its Brady House branch in Horniman Circle area of south Mumbai and named the firms led by Modi and his uncle Mehul Choksi’s Gitanjali Group and some other diamond and jewellery merchants as suspects.

The bank had also filed criminal complaints with CBI and the ED, both of which launched nationwide searches on dozens of offices and residences of the alleged fraudsters. The bank named Modi’s brother, his American wife Ami, and uncle Choksi besides some others in the FIR.

Modi left the country along with his family in the first week of January, before the alleged scam became public.

In the letter, Modi pegged the money his companies owe to the bank under Rs 5,000 crore. “The erroneously cited liability resulted in a media frenzy which led to immediate search and seizure of operations, and which in turn resulted in Firestar International and Firestar Diamond International effectively ceasing to be going-concerns. This thereby jeopardised our ability to discharge the dues of the group to the banks,” the businessman wrote.

On the over Rs 11,000-crore loss claimed by the PNB in the FIR, Modi said, “As you are aware, this is entirely incorrect and the liability of the Nirav Modi Group is substantially less. Even after your complaint was filed, in good faith I wrote to you saying please sell/allow me to sell Firestar Group, or their valuable assets, and recover the dues not just from Firestar Group, but also from the three firms.”

Valuing his domestic business at around Rs 6,500 crore, he said, “This could have helped reduce/discharge the debt to the banking system,” but added that this is not possible as all his bank accounts have been frozen and assets sealed or seized.

The letter went on to state that PNB had time and again acknowledged that it had extended the buyers credit facility to the three partnership firms for several years, and that there has been no default on the part of any of these firms over this time period. He said that money went through PNB all these years for the repayments of the advances given by the overseas bank branches under the buyers credit.

In the letter, Modi also wrote that PNB has been earning bank charges to the tune of crores of rupees on the buyers credit facility from the three partnership firms and that PNB has extended the money to the firm’s buyers as well from where also it has been receiving full payments, with interest and on time all these years.

“That Firestar International and Firestar Diamond International have never been in default to any bank, and the bankers are fully secured”.

On the valuables that CBI/ED searches yielded worth Rs 5,649 crore, he said, “These, and other assets of the group and the three firms could have settled all the amounts due to banks. However, now that stage appears to have passed.”

He concluded by requesting the bank to “be fair, and support my efforts to make good all the amounts that are found due by my group to all banks.”

As per the PTI report, Modi also stated that his relatives booked in the cases filed by the central agencies had nothing to do with the operations of the firms being scrutinised. He said the bank has wrongly named his brother, who is not at all concerned with the operations of the three firms or other companies. “My wife is not connected with any business operations at all and she has been wrongly named. My uncle is also wrongly named in this complaint since he has an independent and unconnected business and none of them are aware or concerned with my dealings with your bank.”

“Whatever may be the consequences I may face for my actions, the haste was, in my humble submission, unwarranted,” Modi concluded and requested the bank to permit him to pay the salaries to 2,200 employees from the balance lying in the current accounts of his firms.

Five bank officials, including the two at the Mumbai branch, have been arrested in the case which stunned financial markets and sent PNB shares tumbling for a fifth straight trading day on Tuesday. Shares in PNB, which has shed nearly a third of its market value since disclosing the fraud, were down 3.5% in early trading after rating agency Fitch placed the bank on negative watch. Later, Moody’s also placed the bank’s ratings under review for a downgrade.

Below is the full text of the letter Nirav Modi wrote to the Punjab National Bank, as per media reports:[/vc_column_text][/vc_column][/vc_row][vc_row][vc_column][vc_column_text css=”.vc_custom_1519117854179{background-color: #ededed !important;border-radius: 10px !important;}”]Dear Sir/Madam,

  1. I refer to the extended discussions between us, and between my representatives and your officers. I also refer to my emails dated 13th and 15th February 2018.
  2. In view of the recent actions by you, the authorities, and the extensive press coverage in the last couple of days, I must state my position to the extent it is relevant at this stage. The media suggests that the liability of the Nirav Modi Group is over Rs. 11,000 crores. As you are aware, this is entirely incorrect and the liability of the Nirav Modi Group is substantially less. Even after your complaint was filed, in good faith I wrote to you saying please sell/allow me to sell Firestar Group, 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 Rs. 6,500 crores which could have helped reduce/discharge the debt to the banking system.
  3. However, the erroneous liability resulted in a media frenzy led to immediate search and seizure of operations, which has in turn resulted in Firestar International Private Limited and Firestar Diamond International Private Limited effectively ceasing to be going concerns. This has thereby jeopardized our ability to discharge the dues of the group to the banks.
  4. In light of this, it is necessary to reinstate some facts:
  5. You have acknowledged that:

(a) The Buyers Credit Facility has been extended by PNB to the three partnership firms since several years.

(b) There has been no default on the part of any of these firms over all these years.

(c) Moneys have gone through PNB over all these years for the repayments of the advances given by the overseas branches of banks under the Buyers Credit.

(d) FIPL and FDIPL have been profitable, enjoyed a high (A-) credit rating, and have never been in default to any bank, and its bankers are fully secured.

  1. You are aware that:

(a) PNB has over the years been earning bank charges to the tune of crores of rupees on the Buyers Credit Facility extended by PNB to the three partnership firms.

(b) The banks that have extended the money to the firms buyers have been receiving payment in full, with interest, in time all these year.

  1. Yesterday, FIPL and FDIPLs inventory has been seized by the authorities. As per press reports the valuation of the is Rs. 5,649 crores. 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.
  2. I urge you once again to be fair, and in the interests of transparency, justice, the banking system and India as a whole, support my efforts to make good all the amounts that are found due by my group to all banks.
  3. In your complaint you have wrongly named my brother, who was not at all concerned with the operations of the three firms or FIPL (India) and FDIPL (India). My wife was not connected with any business operations at all and she has been wrongly named. My uncle is also wrongly named in this complaint since he has an independent and unconnected business from mine and none of us are aware or concerned with his dealings with your officers.

Yours Sincerely,

Nirav Modi[/vc_column_text][/vc_column][/vc_row]

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Manipur: Congress hits back at BJP chief Nadda’s letter to Kharge

Ramesh emphasised that Nadda’s letter is replete with inaccuracies and reiterated that the people of Manipur long for normalcy, peace, and harmony.

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The Congress on Friday lashed out at BJP president JP Nadda’s accusations that the Opposition party was promoting a politically motivated narrative concerning the situation in Manipur.

The grand old party described Nadda’s letter to Congress chief Mallikarjun Kharge as a 4D exercise, which means denial, distortion, distraction, and defamation.

Nadda, responding to Kharge’s call for President Droupadi Murmu’s intervention and his claims of the Centre’s total failure in managing the crisis, claimed that the consequences of Congress’s “abject failure” in handling local issues in Manipur during its governance are still being felt today.

Responding to Nadda, Congress General Secretary for Communications Jairam Ramesh stated, “Congress President Kharge ji wrote to the President of India on Manipur. Apparently, to counter that letter, the BJP President has now written to the Congress President.”

Ramesh emphasised that Nadda’s letter is replete with inaccuracies and reiterated that the people of Manipur long for normalcy, peace, and harmony.

He noted that they are posed with four critical questions: When will the Prime Minister visit the state? How much longer will the Chief Minister remain in office despite lacking majority support? When will a full-time Governor be appointed? And when will the Union Home Minister be held accountable for his failures in Manipur?

Nadda expressed astonishment at the Congress’s ongoing efforts to sensationalize the situation in Manipur, pointing out that Kharge appeared to overlook the fact that his party’s past government had legitimized the illegal migration of foreign militants to India, during which former Home Minister P Chidambaram had signed relevant treaties.

On Tuesday, Kharge had written to President Murmu regarding the worsening conditions in Manipur, requesting her immediate intervention to ensure that the citizens of the state can live peacefully and with dignity.

In his two-page letter, Kharge accused both the Union and Manipur state governments of “completely failing” to restore peace and normalcy over the past 18 months, resulting in a loss of public confidence in their leadership.

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Rahul Gandhi is right, Gautam Adani should be arrested: RJD president Lalu Yadav

“Rahul Gandhi is right. Adani should be arrested,” said Prasad, who is an old ally of the Congress and a staunch opponent of the BJP, to which Adani is said to be close.

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RJD president Lalu Prasad Yadav on Friday spoke in support of Congress leader Rahul Gandhi’s demand for immediate arrest of Gautam Adani, after the Industrialist was charged in the US for alleged bribery and fraud.

Gandhi, the Leader of Opposition in the Lok Sabha, said on Thursday that Gautam Adani should be arrested immediately, and his protector Madhabi Puri Buch should be investigated

The former Congress chief claimed that the recent developments vindicate his long-standing allegations against Gautam Adani. He took a sharp dig at Prime Minister Narendra Modi and alleged that Modi is protecting Adani, and is also involved in corruption. 

Yadav, the former chief minister of Bihar, was responding to queries from journalists here about Gandhi’s statement on the previous day, in the backdrop of charges of bribery and fraud against the Adani group in the US.

“Rahul Gandhi is right. Adani should be arrested,” said Prasad, who is an old ally of the Congress and a staunch opponent of the BJP, to which Adani is said to be close.

The RJD supremo, who incidentally has been convicted in several fodder scam cases and is on bail, was also asked about prospects of the INDIA bloc, of which his party is a part, in Jharkhand, where the counting of votes for assembly polls is scheduled on Saturday.

Speaking to PTI, the ailing septuagenarian replied, “I would like to remain focused on my statement that Adani must be arrested. I am not worried much about a new government (in Jharkhand) where we are already in power.” Jharkhand witnessed a straight battle between the INDIA bloc and the BJP-led NDA, which included the JD(U) headed by Nitish Kumar, Prasad’s arch-rival and the current Chief Minister of Bihar.

Addressing a press conference on Thursday, Gandhi further said that Chief Ministers have been jailed for scams of Rs 10-15 crore, but Adani, who has committed a scam of Rs 2000 crore is walking free.

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Cash for votes row: BJP leader Vinod Tawde sends legal notice to Rahul Gandhi, Mallikarjun Kharge, asks them to apologise or face defamation

The BJP leader said the allegations against him were false, baseless and made with malafide intentions.

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Cash for votes row: BJP leader Vinod Tawde sends legal notice to Rahul Gandhi, Mallikarjun Kharge, asks them to apologise or face defamation

BJP leader Vinod Tawde, accused of distributing cash to influence voters, has sent a legal notice to Congress leaders Mallikarjun Kharge, Supriya Shrinate and Rahul Gandhi over the controversy. The BJP leader has demanded their apologies or face a Rs 100-crore defamation case.

Vinod Tawde’s legal notice came after regional party Bahujan Vikas Aghadi (BVA) leader Hitendra Thakur on Tuesday accused him of distributing Rs 5 crore at a hotel in Virar in Palghar district, 60 km from Mumbai, to woo voters.

In the legal notice, the BJP leader said the allegations against him were false, baseless and made with malafide intentions. He claimed that he demanded an apology from the three Congress leaders for their remarks against him in the cash-for-votes row or he would be forced to initiate criminal proceedings against them.

Just a few hours before the Assembly Elections, a video went viral on Tuesday showing BVA workers storming into the hotel in Palghar during a meeting between Vinod Tawde and Rajan Naik, the BJP candidate from the Nalasopara seat. The BVA workers alleged that Tawde was caught red-handed with Rs 5 crore cash.

In the viral video, the BVA workers were seen taking out bundles of cash from a bag, while Tawde was sitting at a distance. The BVA workers also took pictures and videos of him on their phones. Amid these allegations, BVA leaders said that Rs 5 crore cash was distributed, an election official on Tuesday said Rs 9.93 lakh cash was recovered from the hotel rooms.

However, Vinod Tawde denied the allegation, saying he was only providing guidance to party workers on poll procedures and said he was not stupid enough to distribute money at his opponent’s hotel. Speaking to the media, he said that the Vivanta Hotel is owned by the Thakurs, and he is not stupid to go to their hotel and distribute money there.

The Police registered two FIRs against Tawde, BJP candidate Naik and others in connection with the controversy. Additionally, the Election Commission filed three FIRs against Tawde.

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