PNB fraud: HC grants bail to Nirav Modi’s finance manager

The single-judge bench of justice Bharati Dangre granted Pandya bail primarily on the ground of parity and in view of the fact that several other accused in the case had been already released on bail

Mumbai The Bombay high court (HC) on Monday granted bail to fugitive diamantaire Nirav Modi’s finance manager Miten Pandya, arrested in connection with the ₹13,850 crore fraud at Punjab National Bank (PNB).

The Bombay high court (HC) on Monday granted bail to fugitive diamantaire Nirav Modi’s finance manager Miten Pandya, arrested in connection with the ₹13,850 crore fraud at Punjab National Bank (PNB) (HT File)

The single-judge bench of justice Bharati Dangre granted Pandya bail primarily on the ground of parity and in view of the fact that several other accused in the case had been already released on bail.

“Since the co-accused are released on bail, I see no reason why the present applicant should continue to be incarcerated,” said justice Dangre while ordering the finance manager in Modi’s M/s. Firestar International Pvt Ltd to be released on furnishing personal bond of ₹1 lakh and one or two sureties in the same amount. The court allowed him to be released immediately on furnishing cash bail and granted him four weeks to submit the sureties.

CBI has on January 31, 2018 registered an offence against Nirav Modi and several others, including his firms for defrauding the public sector bank. Investigation by the central agency revealed that between 2011 and 2017, in all 1,214 Letters of Undertakings (LoUs) totalling to USD 3731110331 ( ₹23,780 crore approximately) were fraudulently issued to Modi’s firms Diamonds R US, Stellar Diamonds and Solar Exports, out of which 150 LoUs totalling to ₹6,498.20 crore remained outstanding, resulting in loss of ₹6,805.24 crore to PNB.

Pandya was arrested in the case on March 4, 2018 and has been behind bars since then.

He had moved the high court for bail claiming that he was wrongfully arraigned as accused in the case merely for being an employee of the Firestar group and perusal of the charge-sheet would reveal that he had not received any money or commission from the accused. Besides, he had also pleaded the ground of parity and cited two examples of his immediate boss Vipul Ambani (President, finance) and Arjun Patil – another employee of the firm.

However, the CBI opposed the plea contending that Pandya was not only aware of the fraudulent transactions done by the group, but had also played an important role in concealing huge stock of important and incriminating documents, with an intention to destroy them, by transferring the documents to the office of a law firm at Lower Parel. This, the agency had claimed, was done late in the night a fortnight after registration of the offence.

However, HC granted Pandya bail primarily on the ground of parity. Besides, the court also took into consideration the fact that he was behind bars for around four-and-half years.

“Prolonged delay in culmination of the trial will not justify the indefinite incarceration of the accused, however serious the accusations may be. Once the investigation is complete and the chargesheet is filed, it is not necessary for the accused to remain in custody,” said the court.