The Central Bureau of Investigation (CBI) on Sunday, 4 March, arrested two employees and one auditor of Nirav Modi Group of Companies and one Director of Gitanjali Group of Companies in connection with the multi-crore fraud at the Punjab National Bank (PNB).
Manish K Bosamiya, former AGM (operation) and Miten Anil Pandya, then finance manager, both of Firestarter International Ltd were arrested for their alleged role in the preparation of applications for the fraudulent LoUs submitted to the PNB.
Sanjay Rambhia, Partner in the chartered accountant firm M/s. Sampat and Mehta, Mumbai, has also been arrested in the on-going investigation.
Aniyath Shiv Raman Nair, then Director of Gili India Ltd was arrested in the on-going investigation of the case. It was alleged that besides being one of the Directors of Gitanjali Group of Companies, he was the authorised signatory for the applications made to the PNB for issuance of purported LoUs and FLCs.
Directorate of Revenue Intelligence Sanctions Prosecution for Modi and his 3 Firms
In another developmentANI has reported that as per the guidelines of the Central Board of Excise and Customs of the Ministry of Finance on prosecution of persons in duty evasion cases, the Directorate of Revenue Intelligence has sanctioned prosecution for Nirav Modi and his three firms.
Modi and his 3 firms – Firestar Diamond International, Firestar International Pvt Ltd and Radhashir Jewellery Company Limited have been found to be fit to be prosecuted under Sections 132, 135(1)(a), 135(1)(b), 135(1)(i) of the Customs Act of 1962 and Section 120-B of the Indian Penal Code, 1860.
If convicted, the quantum of punishment as per Section 135(i)(D) of the Customs Act, 1962 is up to 7 years imprisonment. The trial is said to be launched soon, ANI reported.
NCLT Bars Over 60 Entities From Selling Assets
Amid the ongoing multi-agency probe, the National Company Law Tribunal (NCLT) restrained more than 60 entities, including Nirav Modi, Mehul Choksi, various individuals, companies and limited liability partnership firms, from selling their assets, reported PTI.
NCLT passed the directions against Nirav Modi and Mehul Choksi, the alleged main perpetrators of the fraud, as well as their firms and relatives, among other entities, as per a public announcement by the corporate affairs ministry.
The ex-parte order was passed on a petition filed by the ministry under various sections of the Companies Act, 2013.
The ministry moved the petition under various provisions such as Section 221, which pertains to freezing of assets of company on inquiry and investigation, and Section 222 that relates to imposition of restrictions upon securities.
It has been passed against 64 entities that includes Nirav Modi, Mehul Choksi, few individuals related to the Punjab National Bank, various companies and limited liability partnerships. Gitanjali Gems, Gilli India, Nakshatra Brands and Firestar Diamond are among the barred companies, while partnership firms include Solar Exports and Stellar Diamond.
The NCLT has posted the matter for further hearing on 26 March when the entities concerned have been asked to present before the tribunal.
The estimated Rs 12,700 crore fraud was perpetrated by way of fraudulent Letter of Undertakings (LoUs) in connivance with some bank employees.
(With inputs from PTI and ANI)
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