PNB fraud case: Mumbai Court rejects Nirav Modi sister Purvi's plea to record statement via video link
ADVERTISEMENT
A special CBI court in Mumbai on Monday rejected a petition filed by fugitive diamantaire Nirav Modi's sister Purvi Modi, seeking permission to record her statement in the multi-crore Punjab National Bank (PNB) fraud case through video conferencing.
Nirav Modi, currently lodged in a London jail, is a prime accused in the 2018 case. Purvi Modi, his younger sister and a Belgian national, has already approached the Central Bureau of Investigation (CBI) court seeking to turn approver in the case.
The CBI had earlier maintained that her statement must be recorded before her plea to become an approver can be decided. Purvi Modi's lawyer had requested that the statement be recorded through video conferencing, but Special CBI Court Judge Subash Karhale rejected the plea.
Purvi Modi seeks approver status
The development is significant because an approver can provide evidence or testimony against other accused in exchange for legal consideration, subject to the court accepting the request and applicable conditions. Purvi Modi has already been arraigned as an accused in the alleged bank fraud case, in which multiple chargesheets have been filed by both the CBI and the Enforcement Directorate (ED).
Her husband, Maiank Mehta, and Purvi Modi have already turned approvers in a related money laundering case being investigated by the ED. Their status in that proceeding adds significance to Purvi Modi's separate request before the CBI court in the underlying bank fraud case.
PNB fraud case dates back to 2018
The case stems from allegations that Nirav Modi, his uncle and diamond trader Mehul Choksi, and others were involved in a fraud at PNB's Brady House branch in south Mumbai. The alleged wrongdoing involved fraudulent Letters of Undertaking (LoUs) issued in connivance with bank officials, which were used to obtain credit from overseas branches of Indian banks.
The ED and CBI have been investigating the alleged fraud and associated money laundering since 2018. The case became one of India's most prominent banking fraud investigations, triggering scrutiny of the use of LoUs and weaknesses in banking controls.
The alleged fraud was reported at more than $2 billion, equivalent to over ₹13,000 crore at the time. Nirav Modi subsequently left India and has been involved in prolonged legal proceedings in the UK over India's efforts to secure his extradition.
The rejection of Purvi Modi's video-conferencing request means her statement will now have to be recorded in accordance with the procedure determined by the special CBI court, before her plea to turn approver can be considered.