Show-cause notice to Nirav Modi in PNB case

Mumbai, May 13

A special court here has issued a public notice to fugitive diamond merchant Nirav Modi, wanted in India for alleged fraud and money laundering in the PNB scam case, asking why his properties should not be confiscated under the Fugitive Economic Offenders (FEO) Act.

Special Judge VC Barde has also asked Modi to appear before the court on June 11.

The court said if the accused failed to appear, it would proceed with action against him under the FEO Act.

The special court had in December 2019 declared Modi a fugitive economic offender, on a plea of the Enforcement Directorate (ED), which is conducting a probe into the case.

A similar notice was also issued to Modi’s wife Ami, sister Purvi and brother-in-law Maiank Mehta. They were enumerated as “interested persons” in the application.

The investigating agency has alleged that Modi and his uncle Mehul Choksi, in connivance with certain bank officials, allegedly cheated the Punjab National Bank (PNB) to the tune of Rs 14,000 crore through issuance of fraudulent letters of undertaking (LoUs).

The LoUs were allegedly issued in a fraudulent manner by a Mumbai branch of the PNB to a group of companies belonging to Modi since March 2011 till the case came to light.

Under the FEO Act, a person can be declared a fugitive economic offender if a warrant has been issued against him for an offence involving an amount of Rs 100 crore or more and he has left the country and refuses to return. — PTI