The Punjab National Bank(PNB) is likely to soon receive its first tranche of money involved in the Nirav Modi fraud case, sources from ministry of corporate affairs told CNBC-TV18 on Friday.
It was alleged that diamantaire Nirav Modi, through his companies, siphoned off funds to the tune of Rs 6,498.20 crore using fraudulent LoUs issued by PNB's Brady House branch in Mumbai. Modi's uncle and business partner Mehul Choksi was also named in the case as he allegedly swindled Rs 7080.86 crore, making it possibly the biggest banking scam in the country.
The US court has found that the billionaire and his companies were directly involved in the transactions related to alleged fraudulent circumstances, said a report filed by the bankruptcy examiner John J Carney, appointed by the US court. This may lead to Modi facing criminal proceedings in the US court.
The report findings will strengthen MCA's proceedings before NCLT against Nirav Modi. The United Kingdom government on August 20 confirmed the presence of the fugitive billionaire in London.
The report by Carney also added that it was “highly likely” that Mihir Bhansali, CEO of Firestar Diamond International and Fantasy Inc., and Ajay Gandhi, CFO of all Firestar US entities, were also involved in assisting in the fraud.
Choksi has also filed for bankruptcy in the US Delaware court for his company Samuel Jewellers, which is listed for September 13. The government is confident that PNB will be proved as a creditor in the case.