CBI rejects Nirav Modi, Mehul Choksi's excuses, asks duo to join probe immediately
The CBI on Thursday sent a fresh set of summons to rogue jewellers Nirav Modi and his uncle Mehul Choksi to join investigations immediately, making it clear to the absconding duo that they were obliged to cooperate. The agency had earlier sent summons on February 19, 23 and 28 asking them to appear on March 7. Gitanjali Gems promoter Choksi, in his seven-page letter which was released by his lawyer, has said it was impossible for him to return to India and join the investigation due to the suspension of his passport and ill-health.
In a detailed e-mail reply to the CBI's notice seeking his appearance, Choksi said his passport has been suspended by the authorities and he was undergoing medical treatment. He said that on February 16, he received an e-mail from the passport office which stated that his travel document has been suspended due to the reason 'security threat to India'.
However, the Regional Passport Office, Mumbai, did not give him any explanation for suspension of his passport or as to how he was a security threat. I am also not in a position to travel due to my persisting health problem. I had a cardiac procedure which was conducted in the first week of February 2018 and there is still pending work to be done on the same. ``The entire procedure could not be completed on all veins due to danger to kidney and therefore I am not allowed to travel for at least a period of four to six months,'' he said.
Nirav Modi has also sent a similar response to the CBI saying that he could not travel to India to join the investigation. . However, the CBI is not buying these excuses and has directed him to approach the Indian mission in the country where they were residing so that immediate arrangement can be made for their travel to India, a senior official said.
The CBI had earlier asked them to join the investigation related to the $2 billion PNB fraud pertaining to fraudulent issuance of the LoUs and Letters of Credit (LCs) from Brady House branch of PNB in Mumbai in their favour, they said. The LoU is a guarantee which is given by an issuing bank to Indian banks having branches abroad to grant a short-term credit to the applicant.
In case of default, the bank issuing the LoU has to pay the liability to credit giving bank along with accruing interest. It is alleged that LoUs and LCs worth close to USD 2 billion were issued to the companies of uncle-nephew duo of Choksi and Modi from the Brady Road branch of the bank through SWIFT (Society for Worldwide Interbank Financial Telecommunication) messages.
Senior PNB officials claim these messages were not entered into the internal banking software system of the bank as a result of which the fraud could not be detected even though it had been going on since 2011. However, the CBI has questioned both a former PNB chief and the current chairman Sunil Mehta in connection with the case.
On Wednesday, the Serious Fraud Investigation Office (SFIO) had also questioned Mehta in connection with the fraud. Sunil Mehta's appearance SFIO followed its meeting with executives of private sector lenders ICICI Bank and Axis Bank on Tuesday. These banks also have exposure to the fraud.
