PNB asks Nirav Modi to come up with plan to repay dues
Scam-hit Punjab National Bank on Thursday asked billionaire diamond jeweller Nirav Modi to come up with implementable plan to settle the loss caused to it by fraudulent issue of Letters of Undertaking (LoU) through one of its branches.
- Published 22.02.18
New Delhi, Feb. 22 (PTI): Scam-hit Punjab National Bank on Thursday asked billionaire diamond jeweller Nirav Modi to come up with implementable plan to settle the loss caused to it by fraudulent issue of Letters of Undertaking (LoU) through one of its branches.
The bank was responding to a mail written by Nirav Modi, who allegedly cheated the bank of Rs 11,400 crore in connivance with a few bank officials.
”You were getting LoUs issued illegally and in an unauthorized way through few bank officials. At no stage such facilities were extended by our bank to your three partner firms,” Ashwini Vats, PNB General Manager (international banking division) is said to have replied.
When the illegal activities of Nirav Modi surfaced, the bank brought them to the notice of the law enforcement agencies as they apparently violated foreign exchange and anti-money laundering law, sources said.
”Your commitment and undertaking for sparing of the total liability was not backed by providing upfront amounts and timelines. However, should you have any concrete and implementable plan, do revert back,? the mail said.
Nirav Modi in his letter to the bank had said that the over-zealousness on the part of the bank to deal with the issue destroyed his jewellery brand and also jeopardised his ability to clear the dues.
”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.