Nirav Modi, along with his family, left India in January, before the alleged PNB scam became public
Highlights
- Mr Modi has accused the bank of 'destroying his brand and business'
- PNB has asked Mr Modi to come up with a concrete plan to pay dues
- Nirav Modi claimed the Rs 11,300 figure is incorrect and is much lesser
The Punjab National Bank has sent a stiff reply to Nirav Modi, demanding that the celebrity jeweller come up with a concrete plan to return the Rs 11,300 crore his companies have borrowed without following proper procedures. The loans, granted illegally by its own officials, have landed India's second largest bank in a huge controversy.
Though the bank has assured authorities that it had enough funds to meet its liabilities, it is now attempting to recover the dues from the jeweller, who fled the country last month.
In a letter, Nirav Modi has accused the bank of shutting the doors on the recovery process by "destroying his brand and business". The 48-year-old also claimed the figure mentioned by the bank is incorrect and in reality, the dues are far less.
In its mail, the bank hit back today, saying it has complained to the authorities after Nirav Modi's companies obtained the loans illegally with the connivance of officials.
Nirav Modi, the mail from the bank's senior official Ashwini Vats, said, was "getting LoUs issued illegally and in an unauthorized way through few bank officials. At no stage such facilities were extended by our bank to your three partner firms," reported news agency Press Trust of India, citing sources.
"Your commitment and undertaking for sparing of the total liability was not backed by providing upfront amounts and timelines. However, should you have any concrete and implementable plan, do revert," the bank's mail said, reported PTI.
The bank said last week that it discovered the fraud after Nirav Modi's companies sought a fresh loan. Two central agencies - the Central Bureau of Investigation and the Enforcement Directorate - are investigating the matter and so far, five persons have been arrested. Raids have been conducted for over a week on properties associated with Nirav Modi and his partner Mehul Choksi located across the country. More than 200 fake companies and assets under fake names are being also being investigated.