India’s largest law firm, Cyril Amarchand Mangaldas (CAM), is being scrutinised by federal agents after they seized documents related to the $2-billion fraud at state-run Punjab National Bank (PNB) from CAM’s premises in February, a lawyer representing the government and a police source told Reuters.
In what has been dubbed as India’s biggest bank fraud, PNB in January alleged that billionaire diamond jeweller Nirav Modi and his uncle had for years fraudulently raised billions of dollars in foreign credit by conspiring with staff at the bank.
In mid-February, Modi’s aides packed cartons of documents at one of his diamond firm’s offices in Mumbai and sent them to CAM’s office nearby, from where police seized them within a week on February 21, a review of the Central Bureau of Investigation’s (CBI) court filings and witness testimonies showed.
K. Raghavacharyulu, a prosecution lawyer in the Modi case, and two CBI sources who declined to be named, said CAM possessed documents detailing Modi’s dealings with PNB, even though the firm wasn’t representing the diamond magnate or his companies.
“CAM was not their attorney in the PNB fraud case, 100 per cent sure ... that’s why they could not cite attorney-client privilege,” Raghavacharyulu said, adding that his assessment was based on regular briefings he received from the CBI investigating officers.
CAM declined to comment on its relationship with Modi, who is on the run overseas. Its spokeswoman, Madhumita Paul, said the firm “strictly follows the legal best practices and does not comment on matters that are sub-judice or are under investigation”.
In CBI’s first charge sheet in May in the fraud case against Modi and others, the agency said that “incriminating documents/articles relevant to the case” were concealed in the office of CAM. No charges were brought against the law firm and it was not named as a witness in the case.
Since then, Raghavacharyulu said, police have not interviewed any CAM official in the case, though one CBI source said that before filing the first charge sheet, police summoned, questioned and recorded the statement of at least one junior CAM lawyer.
That statement has still not been produced in court because the agency is deliberating whether to charge the law firm for concealment of evidence or name it as a prosecution witness to testify against Modi, the source said.
Raghavacharyulu said it is possible the police could bring charges against CAM for helping to conceal documents. CAM declined to comment on the possibility of being charged or being named as a witness, and said the Reuters findings were “full of false and speculative statements”. It did not elaborate.
CBI’s spokesman Abhishek Dayal, declined to comment for this article.