PNB fraud: Close aide of Nirav Modi remanded to CBI custody | Mumbai news - Hindustan Times
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PNB fraud: Close aide of Nirav Modi remanded to CBI custody

Apr 12, 2022 08:47 PM IST

A special Central Bureau of Investigation (CBI) court on Tuesday remanded Subhash Shankar Parab, a close associate of fugitive diamond trader Nirav Modi, to CBI custody till April 26

Mumbai A special Central Bureau of Investigation (CBI) court on Tuesday remanded Subhash Shankar Parab, a close associate of fugitive diamond trader Nirav Modi, to CBI custody till April 26.

CBI had on January 31, 2018, registered a case against Nirav Modi, his Firestar group, his brother Nishal, uncle Mehul Choksi, several others, including some officers of the public sector bank for allegedly defrauding PNB Bank. (Aniruddha Chowdhury/Mint)
CBI had on January 31, 2018, registered a case against Nirav Modi, his Firestar group, his brother Nishal, uncle Mehul Choksi, several others, including some officers of the public sector bank for allegedly defrauding PNB Bank. (Aniruddha Chowdhury/Mint)

Parab, the 16th accused to be arrested in the massive fraud at Punjab National Bank (PNB), was deported to India from Cairo, Egypt. CBI officials took him in custody after he landed at Mumbai International Airport early on Tuesday morning. The 50-year-old was detained at Cairo airport on the basis of a Red Corner Notice issued for his arrest, when he was planning to move out of the Egyptian capital.

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Later in the day, CBI produced Parab before the special court where special prosecutor A Limosin sought his 14-day custody, contending that Parab had left India on January 1, 2018 along with prime accused Nirav Modi and his family members – just four weeks before the agency registered first FIR in the case on January 31, 2018.

Parab, according to the CBI, was the head of finance department at Nirav Modi’s Firestar International from 2015 and looked after banking-related activities of the three Firestar group firms -- M/s Diamonds R US, M/s Stellar Diamond and M/s Solar Exports.

The agency claimed that all applications for fraudulently obtained Letters of Undertakings (LoUs) from PNB and documents annexed to the applications were prepared on Parab’s instructions. The agency further claimed that Parab used to transfer funds from the firm’s bank accounts to personal bank accounts of Nirav Modi and his family members and others, as per Modi’s instructions.

“He was a close confidante of main accused Nirav Modi and was directly reporting to him and had knowledge of the fraudulent activities,” said CBI’s plea seeking his custody remand.

“He actively conspired with other co-accused persons including bank officials for issuance of fraudulent LoUs on behalf of the said three firms, without fulfilling requisite bank guidelines for wrongful gain to the three firms of Nirav Modi and corresponding wrongful loss to PNB,” it added.

CBI had on January 31, 2018, registered a case against Nirav Modi, his Firestar group, his brother Nishal, uncle Mehul Choksi, several others, including some officers of the public sector bank for allegedly defrauding the public sector bank.

Investigation by the CBI has revealed that between 2011 and 2017, in all 1,214 LoUs totalling to USD 3731110331 (approximately 23,780 crore) were fraudulently issued by PNB to various overseas banks to finance imports by Modi’s firms - Diamonds R US, Stellar Diamonds and Solar Exports.

Of the LoUs, 150- totalling to 6,498.20 crore and resulting in loss of 6,805.24 crore to PNB – were outstanding when the scam broke out in January 2018.

The probe also revealed that Modi’s maternal uncle Mehul Choksi had duped PNB to the tune of 7,080 crore, using the same modus operandi.

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