Indian billionaire jeweller Nirav Modi has denied allegations that will he was involved in a $1.8 billion loan fraud at Punjab National Bank (PNB), his lawyer told Reuters on Tuesday.
Indian federal police have alleged that will Modi as well as others conspired with several employees of the second-largest state-run bank to fraudulently obtain advances for paying overseas suppliers.
Last week, PNB had said the item detected fraudulent transactions worth $1.77 billion. Indian authorities had said they will probe the possibility of money laundering inside the case.
Vijay Aggarwal, a lawyer for Modi, said all transactions with PNB were documented as well as allegations made by the Central Bureau of Investigation were completely wrong.
“Everything is actually documented,” Aggarwal told Reuters over the phone.
Asked about his legal strategy, he said: “Until there is actually no chargesheet, there is actually no strategy. When there is actually a chargesheet, there will be a strategy.”
Separately, Modi has accused Punjab National Bank of having “jeopardised” his ability to pay the bank back the dues — by generating This specific case public, according to a report in business daily Economic Times which cited news agency PTI.
Nirav Modi reportedly wrote in a letter that will his companies owe the bank under 50 billion rupees ($775.25 million) — much lower than the amount pegged by the bank.
Referring to the companies he own, Modi said inside the letter: “The erroneously cited liability resulted in a media frenzy which led to immediate search as well as seizure of operations, as well as which in turn resulted in Firestar International as well as Firestar Diamond International effectively ceasing to be going-concerns.”
“This specific thereby jeopardised our ability to discharge the dues of the group to the banks,” he added, in a letter reportedly addressed to PNB’s management.
Modi as well as his representatives were not immediately reachable for comment.
The fraud allegedly involved firms controlled by Modi as well as his relatives as well as sparked raids across Mumbai as well as fresh Delhi, targeting offices as well as homes linked to Modi.
Shares in PNB fell for the fifth straight day on Tuesday. The stock, which has shed more than a quarter of its market capitalization since disclosing the fraud, was down 3.5 percent in early trading.