After several twists and turns in a lengthy legal case, Modi on Wednesday lost his appeal against extradition to India as the High Court in London ruled that the risk of suicide does not amount to extradition to face charges. would be unjust or oppressive. of fraud and Money laundering,
The USD 2 billion fraud not only led to a political impasse, but also increased the scrutiny of banking operations in the country.
LoU is a form of guarantee issued by a bank to an entity for obtaining short-term loan from an overseas branch of any Indian lender.
These LoUs are not issued against normal retail transactions and are instead used for trade or business transactions.
Companies related to Nirav Modi should get these LOUs PNB‘s brady House branch in Mumbai, but instead of actual business transactions, the money was allegedly siphoned off with the help of some rogue employees of the country’s second largest government lender.
Modi obtained his first LoU from Brady House branch of PNB in ​​March 2011. He managed to get 1,212 more such guarantees in the next 74 months.
During these six years, 53 genuine (non-fraudulent) LoUs were also issued to the Nirav Modi group – the first in March 2011 and the last in November 2017.
However, later according to the investigating agencies, the LoUs were mainly used for money laundering.
Nirav Modi had fled India in 2018 to evade the law, days before a case was registered against him and his associates.
PNB exposed the scam on January 25, 2018 and submitted the fraud report reserve Bank of India (RBI) on 29 January. A criminal complaint was also filed with the CBI on that day to register an FIR. This was followed by another fraud report submitted to RBI on February 7, the day another complaint was filed with the CBI.
On February 13, 2018, an FIR was registered in the CBI against Nirav Modi Group, Gitanjali Group and Chandri Paper & Allied Products Pvt Ltd. A complaint was also filed with the Enforcement Directorate. The stock exchanges were informed the next day.
PNB had alleged in the complaint that Modi and its affiliated companies colluded with some of its officials – including a former deputy general manager Gokulnath Shetty – who was posted in the foreign exchange department of its Mumbai branch.
They fraudulently secured guarantees of USD 1.77 billion or Rs 11,400 crore to obtain loans from overseas branches of Indian banks, claiming they needed cash to import pearls.