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PNB fraud: Nirav Modi's ex-director moves HC for quashing LOC

Press Trust of India  |  New Delhi 

A former Nirav Modi's company today moved the High Court seeking quashing of a (LOC) issued against him after lodging of an FIR by the CBI in the PNB fraud case.

The high court sought response of the CBI on the plea by Sanjay Rishi, an Overseas Citizen of residing in the United States, seeking direction to the authorities to withdraw the LOC.

Justice issued notice to the CBI and SFIO, which is also conducting an investigation into the matter, and listed the matter for further hearing on July 25.

Rishi, of for South Asia, was appointed as a of Nirav Modi's on December 6, 2016 and he resigned from the post on February 7, this year. He said he did not take part in the day to day affairs of the company.

Senior Siddharth Luthra, appearing for Rishi, submitted that an FIR was lodged on March 4 for the alleged offences of cheating, criminal conspiracy under the IPC and the provisions of the Corruption Act and when summonses were issued to him, he voluntarily came to and joined the CBI investigation.

The argued that Rishi was not being allowed to leave the country due to continuation of the LOC and his work was being hampered in the US.

The plea was opposed by CBI Rajdipa Behura who said the investigation was going on and if Rishi is allowed to go to the US and he does not return, the probe will be stalled.

She said keeping in mind the magnitude of the offence, he cannot be allowed to leave the country as the probe was at an initial stage.

The also took a preliminary objection to the petition and said all the three FIRs in the matter were registered in and the LOC was opened in Mumbai, so the appropriate court would be in and not She said the request to issue LOC was made to the by an SP of CBI.

Rebutting the submission on jurisdiction issue, Rishi's said he was detained at airport and the CBI director, who is the authorised person for issuing LOC, sits in Delhi so the jurisdiction is here.

He said he was ready to cooperate in the investigation and would come to as and when asked and he was not running away as his wife and parents reside here and he has two houses in Delhi and

Rishi, in his plea, said he was detained at the on his arrival on March 15 and was asked by the CBI to appear before it at the next day.

He said details of the LOC have not been given to him, and due to the LOC, he has not been able to return to USA and such restrictions on his travel are wholly unwarranted and unjustified and in absolute violation of fundamental rights.

The March 4 FIR alleged that directors, officer and officer of Firestar International Ltd, Firestar Pvt Ltd, other directors/ promoters, company officials and unknown public servants of entered into a criminal conspiracy, pursuant to which PNB, Mumbai was allegedly cheated to the tune of Rs 321.88 crore over the period 2013-17.

Billionaire Nirav Modi, his uncle and others are being investigated by multiple probe agencies after the scam came to light in January following a complaint by the PNB that they had allegedly cheated the nationalised to the tune of Rs 11,400 crore, with the purported involvement of a few employees of the

The ED has registered the money laundering case against Modi, his firms and others on the basis of a CBI FIR.

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

First Published: Tue, May 15 2018. 20:50 IST