Nirav Modi writes to PNB, offers 'concrete proposal' to clear dues

Billionaire jeweller Nirav Modi has offered the Punjab National Bank jewellery worth Rs 2,000 crore, current account deposits worth Rs 200 crore and Rs 50 crore in immovable properties as part of a “concrete proposal” to settle his dues, the Hindustan Times reported on Thursday.

Modi wrote to the bank on February 26, the newspaper quoted a person familiar with the matter as saying. He said he was writing in response to the bank’s letter asking for a concrete plan to pay pack his dues. The jeweller and his uncle Mehul Choksi are accused of defrauding the Punjab National Bank of Rs 12,703 crore in one of India’s largest bank scams. The bank had initially said the amount was around Rs 11,380, but in a stock exchange filing later revealed additional fraud of Rs 1,323 crore. “Modi has told the bank that he intended to resolve the matter and ensure justice is served to all,” another person privy to the contents of the letter told the Hindustan Times.

He also said that all company operations were stalled because of the crackdown various investigative agencies had launched on his assets. The report said the jeweller had urged the Punjab National Bank to take over his companies so his employees could be paid. Meanwhile, the Bureau of Immigration on Wednesday issued a Blue Corner Notice against Modi and Choksi for allegedly defrauding the Punjab National Bank. It issued the notice on the Income Tax Department’s request, PTI reported. A Blue Corner Notice is issued to locate, identify or get information about a person of interest in a criminal investigation. In this case, the notice against Modi and Choksi will be valid for a year starting February 22 at all ports of embarkation.

On Wednesday, Modi’s lawyer objected to the Enforcement Directorate seeking a non-bailable warrant against the diamond merchant, the Hindustan Times reported. The agency had moved the Prevention of Money Laundering Court for a warrant against Modi as he had not replies to three summons. Modi’s lawyer Vijay Agrawal claimed his client had responded to all three summons, and that the agency could not seek a non-bailable warrant as it has not filed a formal complaint against the jeweller. The court will hear the case on Saturday.