The Punjab National Bank (PNB) has moved a recovery writ in a Hong Kong court against Nirav Modi for an amount over $5 million.
The writ has been filed against Nirav’s companies Firestar Diamonds and Firestar Diamonds International.
Nirav is at large after defrauding Punjab National Bank of 14,000 crore using 1,200 illegally secured letters of undertakings (LOUs).
Based upon the inputs collected through the intelligence sources, investigating agencies have claimed that fugitive diamond merchant Nirav Modi, who is wanted in connection with the ₹13,578-crore Punjab National Bank (PNB) fraud cases, is still residing in Hong Kong and his whereabouts have been established.
Earlier this month, Minister of State in the Ministry of External Affairs General VK Singh informed the Rajya Sabha that the ministry “has sought the provisional arrest of Nirav Deepak Modi”. He said the request was made on March 23.
To avoid reoccurrence of such bank frauds, Punjab National Bank has started tightening the noose around wilful defaulters who are viewed as high risk in regards to their possibility of fleeing the country to evade recovery.
In March, the Centre had also announced a new rule against economic offenders attempting to flee the country. The government announced that banks will have to collect passport details of customers who seek loans above Rs 50 crore.
Besides this, the Centre has identified 90 wilful defaulters and has put them on a watch list to ensure they don’t flee the country.