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CBI questions CFO of Nirav Modi's co. in new Rs-321 cr case

Press Trust of India  |  New Delhi 

Top honchos of public sector banks have come under the scanner of the CBI in connection with Rs 321.88 crore of alleged loan default case registered by the agency against billionaire Nirav Modi, the officials said today.

The CBI today questioned of Modi's company in who is accused in the agency in connection with the case.

The agency is grilling him to know how the loans were granted and how did diversion of funds happened besides on involvement of senior executives of the PSU banks.

The loans of Rs 321 crore were given by two consortium of banks to the companies of Nirav Modi-- -- where the is the lead and the where of India is the lead bank.

"There is a difference between earlier case against in which Letters of Undertaking were issued in fraudulent manner and this case where credit limits were sanctioned. In the case of LoUs one can assume that it was handiwork of lower rung of employees but credit facilities are monitored at various senior level officials," an said.

The agency will call for questioning senior officials of the lending public sector banks to understand how monitoring was being done and what steps were taken to prevent diversion of funds, the said.

The CBI has named Modi, then (finance) of his company Vipul Ambani, chief officer Ravi Gupta, other directors and officials of the company, and unidentified public servants of the bank, they said.

In its complaint, now part of the FIR, the bank alleged that it came to its notice that credit facilities were not used for the purpose -- packing credit, guarantees etc -- for which they were given.

The head office of bank had declared the accounts of Firestar Diamonds and Firestar International as fraud and reported it to the on March 4, it said.

The bank alleged that during its internal investigation, it spotted "circular transactions" between Modi promoted partnership firms -- Solar Exports, Stellar diamonds and Diamond R Us -- and Firestar group of companies, also promoted by him.

The bank said a criminal conspiracy was hatched by the accused causing a loss of Rs 321.88 crore which remained outstanding to the

is already facing an pertaining to over Rs 6,200 crore of alleged fraudulent letters of undertaking (LoUs) and Leters of Credit (LCs) issued to his company by the PNB.

Modi and his uncle Mehul Choski, the promoter of Gitanjali group, are accused in the issuance of LoUs and LCs worth USD 2 billion (approximately Rs 12,636 crore).

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Mon, March 12 2018. 22:20 IST