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A special CBI court in Mumbai has rejected a plea by Purvi Modi, sister of fugitive diamantaire Nirav Modi, seeking permission to record her statement in the Punjab National Bank fraud case through video conferencing. Purvi, a Belgian national, has sought to become an approver in the case, and the CBI has said her statement must be recorded before her plea can be considered. She and her husband Maiank Mehta have already turned approvers in the related money laundering case being investigated by the Enforcement Directorate. The development comes as multiple proceedings in the long-running PNB fraud case continue.
A special CBI court in Mumbai has rejected a petition filed by Purvi Modi seeking permission to record her statement in the multi-crore Punjab National Bank (PNB) fraud case through video conferencing.
Special CBI Court Judge Subash Karhale rejected the plea after Purvi’s lawyer requested that she be allowed to give her statement through video conference.
Purvi, the younger sister of fugitive diamantaire Nirav Modi and a Belgian national, has already approached the CBI court seeking to turn approver in the case. The CBI has maintained that her statement needs to be recorded before the court can consider her plea to become an approver.
Purvi was earlier named as an accused in the alleged PNB bank fraud. The CBI filed a supplementary chargesheet against her in the case, alleging that she was one of the beneficiaries of funds received through fraudulent Letters of Undertaking (LoUs). The agency had also named Firestar group official Aditya Nanavati in the supplementary chargesheet.
The development is separate from the related money laundering proceedings being investigated by the Enforcement Directorate (ED). Purvi and her husband Maiank Mehta have already turned approvers in that case.
The PNB fraud case dates back to the discovery of fraudulent transactions at the bank’s Brady House branch in south Mumbai. The CBI had alleged that fraudulent LoUs were issued to companies linked to Nirav Modi and his uncle, diamond trader Mehul Choksi, allowing them to obtain credit from overseas branches of Indian banks.
The alleged fraud involved more than USD 2 billion, with the rupee value estimated at over INR 13,000 crore at the time. The CBI’s investigation found that LoUs were issued without following the required banking procedures and that transactions were not entered into the bank’s core banking system, which helped them avoid detection.
The CBI had earlier filed chargesheets against Nirav Modi, bank officials and other individuals in connection with the alleged fraud. One of the initial chargesheets covered fraudulent guarantees worth around INR 6,498.20 crore, which were allegedly used by Modi’s companies to obtain loans from overseas banks.
The bank’s internal investigation also pointed to failures in risk controls and monitoring across several levels of the organisation. The investigation into the fraud showed that the issue was not limited to a single transaction but involved repeated use of the LoU mechanism and lapses in the bank’s internal processes.
Nirav Modi remains the prime accused in the main PNB fraud case and is currently lodged in a London jail. His uncle Mehul Choksi is also a prime accused in the case. The ED has been investigating both men and others for alleged money laundering linked to the bank fraud since 2018.
The case has continued through multiple chargesheets and related proceedings involving people connected with Modi’s businesses. Purvi’s attempt to become an approver in the CBI case is now subject to the court’s decision after her statement is recorded in accordance with the procedure sought by the investigating agency.
Source PTI
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