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Now PNB writes to Nirav Modi; mentions LoUs were illegally procured

Modi had said in his letter to PNB that the lender’s anxiety to recover dues immediately and going public has destroyed his business

Now PNB writes to Nirav Modi; mentions LoUs were illegally procured

Amid concerns over the banking system in India, the Punjab National Bank has written to the diamond trader Nirav Modi pointed out that Modi was getting Letter of Undertakings illegally.

The letter written by Ashwini Vats, who is PNB’s General Manager in the International Banking Division, said that at no stage such facilities were extended by our bank to the 3 partner firms.

He stated that when these illegal activities surfaced, they pointed out towards apparent violation of FEMA and money laundering aspect and as required by law, the bank was compelled to bring the activities to the notice of Law and Enforcement agencies which the bank did.

It need be mentioned that businessman Nirav Modi had earlier written a letter to PNB saying that it has closed all option to recover their dues by going public with the matter.

The state-owned lender said the Modi’s offers for loan settlement were not backed by an upfront amounts and timelines.

The bank also urged the absconding businessman to revert back with any concrete and implementable plan.
Last Thursday, PNB top management said it will pursue recovery and has received some “vague offers” for repayment of money from jewellery designer Modi, whose companies are embroiled in conducting fraudulent transactions worth $1,771.7 million (Rs 11,400 crore).

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