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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]

India News

Maharashtra Assembly election: Uddhav Thackeray expels 5 Sena members for not withdrawing nominations

Following the withdrawal of nominations, around 4,140 candidates were left in the fray for 288 Maharashtra assembly seats

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Maharashtra Assembly election: Uddhav Thackeray expels 5 Sena members for not withdrawing nominations

Uddhav Thackeray, Shiv Sena (UBT) chief on Tuesday expelled five rebel leaders for anti-party activities after they failed to withdraw nominations filed for the November 20 Maharashtra assembly elections.

The expelled leaders include Bhiwandi East MLA Rupesh Mhatre, Vishwas Nandekar, Chandrakant Ghugul, Sanjay Awari and Prasad Thackeray. Reportedly, 14 leaders from the Maha Vikas Aghadi, comprising Congress, Shiv Sena (UBT) and Sharad Pawar’s NCP had filed nominations, defying party command. 

Among those who withdrew their nominations by the Monday deadline was Congress’ Mukhtar Shaikh, who withdrew from the Kasba Peth assembly constituency in Pune and announced his support to the party’s official candidate Ravindra Dhangekar.

In addition, royal scion Madhurima Raje Chhatrapati’s withdrawal as Congress candidate from Kolhapur North minutes before the deadline left the party without representation in one of its western Maharashtra strongholds. Madhurima Raje was nominated in place of ex-corporator Rajesh Latkar after a party office was vandalised by those opposed to the latter.

Hemalata Patil from Nashik Central, Madhu Chavan from Byculla and Vishwanath Walvi from Nandurbar are among the seven Congress rebels who withdrew their nominations. Only two NCP(SP) rebels are in fray.

Furthermore, among those to withdraw from the electoral race was Maratha quota activist Manoj Jarange, who has held on-and-off hunger strikes and protests to demand reservation for the community in education and jobs over the past year. The activist said that the Maratha community will decide on its own whom to defeat and whom to elect. He also announced he would support two candidates from Parvati and Daund in the state assembly polls, though he said their names will be disclosed later.

Following the withdrawal of nominations, around 4,140 candidates were left in the fray for 288 Maharashtra assembly seats, while 2,938 candidates withdrew their papers. The figure is a 28 per cent increase from the 3,239 candidates who fought the 2019 assembly polls.

This year, the Maharashtra Assembly election will see major regional parties NCP and Shiv Sena contesting after a split down the middle. The factions led by Chief Minister Eknath Shinde and Deputy Chief Minister Ajit Pawar-led NCP have joined hands with the BJP to form the Mahayuti. The Assembly elections are scheduled for November 20. The counting of votes will take place on November 23.

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Centre issues notice to Wikipedia on complaints of bias, inaccuracies

The government also questioned why Wikipedia should not be classified as a publisher, rather than an intermediary.

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Centre issues notice to Wikipedia on complaints of bias, inaccuracies

The Centre on Tuesday has issued a notice to Wikipedia over multiple complaints about bias and inaccuracies on the platform. The government in its letter to Wikipedia highlighted that a small group of editors appears to have significant control over the contents, particularly influencing its neutrality. 

Reports said that the government also questioned why Wikipedia should not be classified as a publisher, rather than an intermediary. However, neither Wikipedia nor the government has issued an official statement on the matter so far. 

Wikipedia, popularly known as free online encyclopedia, allows volunteers to create and edit pages on a wide variety of topics, including people, issues and various fields of knowledge. This recent development follows two months after the Delhi High Court slammed Wikipedia and also warned it of a potential ban in India during a case filed by news agency ANI, which alleged that its Wikipedia page contained inaccuracies and defamatory content. 

In the last hearing, Justice Subramonium Prasad further observed that Wikipedia might not be entitled to defend the defamatory edits since it claims to be only an intermediary. The Delhi HIgh Court also questioned if Wikipedia is an intermediary, why is it bothered? It added that if somebody else has edited and that addition is without basis, then it comes down.

It further stated that Wikipedia is not here to protect the editors but is a mere wall. The court opined that it will only see whether the opinion given in the encyclopaedia does not depict the correct picture, as not true representation of the article. However, Wikipedia clarified that it was not defending the statements or edits made on Wikipedia’s page about ANI. It further sought to assist the court in the matter, particularly with regard to the architecture of the platform. 

Notably, Wikipedia has faced growing criticism for alleged bias and inaccuracies, especially amid the ongoing US presidential elections. Elon Musk, owner of X, has publicly accused Wikipedia of supporting far-left ideologies. He also urged the public to stop donating to Wikipedia, claiming it is controlled by far-left activists.

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JMM-RJD-Congress are supporters of Bangladesh infiltrators: PM Modi at Jharkhand rally

Narendra Modi further claimed that if the bad policies of JMM, Congress and RJD continue, the adivasi society in Jharkhand will shrink

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JMM-RJD-Congress are supporters of Bangladesh infiltrators: PM Modi at Jharkhand rally

Ahead of the Jharkhand Assembly election, PM Narendra Modi launched a scathing attack on the incumbent Hemant Soren government, accusing it to put appeasement at the top of its agenda.

While addressing a rally in Jharkhand’s Garhwa, the Prime Minister said the coalition government of Jharkhand Mukti Morcha, Congress and RJD are supporters of Bangladesh infiltrators. He said that the JMM-RJD-Congress government has taken appeasement to its peak, and that these parties are destroying the state’s social harmony. He alleged that the parties are supporters of infiltrators, and to get votes of Bangladesh infiltrators, they are getting them settled across Jharkhand.

The Prime Minister stated that when schools disallow Saraswati Vandana, one can imagine how big the danger is. When there is stone-pelting during festivals, Maa Durga is stopped and curfew is imposed, one knows how dangerous it is, he continued. The Prime Minister also added that when the issue of infiltration goes to court and the administration denies, it becomes clear that the government machinery has been infiltrated. PM Modi was referring to allegations that a Muslim teacher stopped prayers to Goddess Saraswati at a school in Jharkhand’s Giridih.

Narendra Modi further claimed that if the bad policies of JMM, Congress and RJD continue, the adivasi society in Jharkhand will shrink, and advised people to use their vote to uproot this infiltrator coalition. He maintained that Jharkhand’s swift development is possible only if it has a government that expedites the implementation of central schemes.

Referring to the JMM’s decision to replace Champai Soren as Chief Minister after Hemant Soren was granted bail in a money laundering case, PM Modi said that the party has left no stones unturned in humiliating an adivasi son. He asked how the party will take care of the people of the state when nothing matters to them more than family. He added that he does not have a family, and the people are his family. He also mentioned that Champai Soren, once a trusted lieutenant of Hemant Soren, is now with the BJP.

Slamming the ruling coalition of corruption, he said that corruption hollows out the country like termites, and destroys the poor, Dalits, people from backward classes and tribals. He claimed that Jharkhand has seen for five years the corruption of the JMM-Congress-RJD government.

He also referred to the massive cash haul from the home of Congress’s former Rajya Sabha MP Dhiraj Sahu last year. Mentioning that mountains of cash are recovered from the home of Congress’s Rajya Sabha MP, he questioned if this money didn’t belong to Jharkhand.

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