The CBI has filed a contemporary case in opposition to absconding diamantaire Mehul Choksi, needed alongside together with his nephew Nirav Modi in a mortgage fraud case of Rs 13,500 crore, for allegedly inflating the worth of diamonds and jewelry pledged to get Rs 25 crore mortgage from IFCI, officers mentioned on Monday. The CBI has booked Mehul Choksi, his firm Gitanjali Gems and valuers Surajmal Lallu Bhai and Co, Narendra Jhaveri, Pradip C Shah and Shrenik Shah, they mentioned.
The central company has acted on a grievance from Industrial Finance Company of India (IFCI) Ltd alleging that Choksi had approached it in 2016 looking for Rs 25 crore working capital mortgage for which he had pledged shares and gold and diamond jewelry. Based on the valuations submitted by 4 totally different valuers, the jewelry pledged was within the vary of Rs 34-45 crore on the idea of which IFCI sanctioned the mortgage demanded by Choksi.
As the corporate allegedly defaulted on funds, IFCI began to invoke the pledged shares and jewelry.
Nonetheless, the corporate may solely promote 6,48,822 shares amounting to Rs 4,07 crore of the full 20,60,054 pledged shares as a result of consumer ID of Mehul Choksi was blocked by NSDL, in keeping with the grievance which is now a part of the FIR. IFCI now focussed on pledged jewels — gold, diamonds and studded jewelry — however its contemporary valuations by a distinct set of valuers confirmed that their values have been 98 per cent under the preliminary studies submitted by Choksi on the time of availing mortgage.
The contemporary valuations confirmed that the pledged jewelry valued something between Rs 70 lakh and a bit of over Rs 2 crore solely, it mentioned. IFCI alleged that Choksi “with dishonest and fraudulent intention colluded with the valuers and bought the valuation of the pledged jewels achieved with exorbitant and inflated worth”. The contemporary valuations confirmed that diamonds have been of low high quality lab ready chemical vapour diamonds and different inferior color stones and never actual gem stones.
The mortgage account was declared a non-performing asset on June 30, 2018, inflicting wrongful lack of over Rs 22 crore to IFCI, it mentioned. “The CBI carried out searches at eight areas in Kolkata and Mumbai on the premises of the accused valuers. Incriminating paperwork have been recovered,” CBI spokesperson R C Joshi mentioned. Choksi is already accused of siphoning off over Rs 6,344.96 crore from Punjab Nationwide Financial institution (PNB) utilizing fraudulent letters of enterprise and international letters of credit score.
Officers at PNB’s Brady Home department in Mumbai issued 165 letters of enterprise (LoUs) and 58 international letters of credit score (FLCs) throughout March-April 2017, in opposition to which 311 payments have been discounted. These LoUs and FLCs have been allegedly issued to Choksi’s corporations with none sanctioned restrict or money margin and with out making entries within the financial institution’s central banking system to evade any scrutiny in case of a default. LoUs are a assure given by a financial institution on behalf of its consumer to a international financial institution. If the consumer doesn’t repay to the international financial institution, the legal responsibility falls on the guarantor financial institution.
Primarily based on these LoUs by PNB, cash was lent by SBI, Mauritius; Allahabad Financial institution, Hong Kong; Axis Financial institution, Hong Kong; Financial institution of India, Antwerp; Canara Financial institution, Mamana; and State Financial institution of India, Frankfurt. “For the reason that accused corporations didn’t repay the quantity availed in opposition to the mentioned fraudulent LoUs and FLCs, PNB made the cost of Rs 6,344.97 crore (USD 965.18 million), together with the overdue curiosity, to the abroad banks, which had superior purchaser’s credit score and discounted the payments in opposition to the fraudulent LoUs and FLCs issued by the PNB,” the CBI’s supplementary cost sheet had alleged.