Key facts
- A special CBI court transferred a fraud case against Nirav Modi to a magistrate's court.
- The CBI stated that corruption charges could not be proven against Punjab National Bank officials.
- The case involves alleged fraud of Rs 321.88 crore from Punjab National Bank.
- A charge sheet will be filed only against private individuals.
- Nirav Modi and Mehul Choksi are prime accused in the multi-crore scam.
A special CBI court in Mumbai has transferred an alleged fraud case against absconding diamond businessman Nirav Modi to a magistrate's court. The Central Bureau of Investigation (CBI) informed the court that corruption charges could not be proven against officials of the Punjab National Bank (PNB), leading to the decision.
The case, initially registered following a complaint by PNB's Mumbai zonal office, involves allegations that the bank was cheated of Rs 321.88 crore. Credit facilities provided to Modi's firms were allegedly misused, with an internal inquiry revealing circular transactions between partnership firms promoted by Modi and his companies, Firestar International Ltd. and Firestar Diamonds International Pvt Ltd.
The accused were initially booked under sections related to criminal conspiracy, cheating, and the Prevention of Corruption Act. However, CBI Public Prosecutor Vikram Singh submitted that a charge sheet would only be filed against private individuals, thus placing the case outside the jurisdiction of the special CBI Court. Special judge J.P. Darekar accepted the CBI's plea for transfer.
Nirav Modi and his uncle Mehul Choksi are the prime accused in the multi-crore scam, which involves allegations of siphoning off over Rs 13,000 crore from PNB through fraudulent Letters of Undertaking and foreign letters of credit, allegedly with the bribery of bank officials. Choksi is facing extradition proceedings in Belgium, while Modi is imprisoned in London.