PNB fraud case: Key Nirav Modi papers seized from law firm

The CBI, however, clarified that it was not examining the law firm

The Central Bureau of Investigation (CBI) has seized “crucial documents” related to the Nirav Modi case from the premises of Mumbai-based law firm Cyril Amarchand Mangaldas (CAM). A CBI official confirmed this, saying the agency had conducted a search operation at the law firm last week in connection with the Rs 114-billion fraud at Punjab National Bank.

The agency, however, clarified that it was not examining the law firm, and that its focus was on documents linked to Nirav Modi, one of the prime accused in the case.

“The law firm was in possession of some crucial documents, which are highly relevant for our investigation,” said the official cited above.

“Though the law firm is not officially Nirav Modi’s legal advisor, we have found some links indicating that CAM was given some mandate, which was called off when the scam broke out,” said the official.

Sources said CAM came in the spotlight during the searches on Firestar International and other group companies of Modi. An email sent to Cyril Shroff, managing partner, CAM, remained unanswered, while the firm’s spokesperson refused to comment.

CBI chief Alok Kumar Verma had directed his officers to conclude all serious bank fraud cases within 90 days, said another CBI official. The agency, the official said, was working overtime to resolve the Nirav Modi case. On Monday, the CBI called PNB Executive Director K V Brahmaji Rao for a second round of questioning. Rao and PNB Managing Dire Sunil Mehta were also quizzed on Saturday. Two PNB general managers heading its overseas operations are facing CBI scrutiny. According to sources, the two general managers were getting daily reports on the bank’s nostro accounts. Despite that, they never raised a red flag over the huge debit and credit being made through letters of undertakings (LoUs).

The agency also called the bank’s statutory auditors and sought explanation on lapses and why the fraud remained under the carpet for so long.

The Enforcement Directorate (ED), too, has called PNB’s top brass for questioning this week, even as it continued questioning other officials and gathering information in the matter. Besides, a special court permitted the ED to send letters rogatory (LRs) to at least six countries to identify and seize Nirav Modi’s foreign assets.

The agency is expected to approach the court for a non-bailable warrant against Nirav Modi and his family if they fail to appear before the agency. The third summons was for February 26. Gitanjali Gems Chairman Mehul Choksi and Modi, the key accused, are being investigated by multiple probe agencies after it came to light that PNB was allegedly cheated of Rs 114 billion through LoUs, with the purported involvement of a few employees of the bank.  

The CBI and the ED have registered two first information reports (FIRs) each in the matter.