PNB Fraud: CBI to seek special court nod to probe offshore locations

MUMBAI: The Central Bureau of Investigation (CBI) will seek the special court's permission to extend the geographic scope of its probe into the $1.8-billion bank fraud to Dubai, Hong Kong and Belgium, people aware of the development told ET.

The CBI court, at the agency's request, will likely issue letters rogatory (LRs) to extend the investigation into the Punjab National Bank (PNB) fraud to offshore locations where Nirav Modi firms and Mehul Choksipromoted Gitanjali Gems had alleged operational bases.

An LR is a formal request from a court here to competent courts overseas to direct the relevant investigative agencies there to assist their Indian counterparts. Various homegrown security agencies are conducting searches and seizing assets — moveable and immovable — of both groups in India.


Hong Kong, Dubai and Antwerp are the trading hubs for rough and polished diamonds. Indian diamond merchants import roughs from Belgium, cut and polish them and export the stones to Hong Kong, Antwerp or Dubai. Many diamond companies have presence in these locations. Nirav Modi, for instance, operated out of Belgium and Hong Kong.

Furthermore, some of the group firms secured buyer's credit against PNB's letters of undertaking from these locations. Investigating officials told ET that Nirav Modi firms caused a Rs 6,000 crore loss to PNB while Gitanjali Gems have liabilities of around Rs 4,887 crore so far.

Meanwhile, a PTI report said CBI on Wednesday sealed a luxury property of Nirav Modi in Alibaug area near Mumbai. The 1.5 acre farmhouse in the uber rich neighbourhood was purchased by Modi in 2004 for Rs 32 crore for hosting special parties for his clientele.