New Delhi: In what seems to be another blow to fugitive diamantaire Nirav Modi, the Bank of India (BoI) has filed a lawsuit worth $6.25 million against him in an Hong Kong court, according to an India Today report. The new development comes in the backdrop of the Rs 13,000 crore Punjab National Bank (PNB) fraud case against the billionaire jeweller, his family, and business partner Mehul Choksi.
The report suggested that the fresh lawsuit was filed by the bank to recover money received by Nirav Modi and his group of companies, which had illegally obtained credit using Letters of Undertaking (LoUs). It has come to light that the bank has filed the lawsuit against Modi and his four companies including Firestar Diamonds and Firestar Diamonds International.
BoI is the second bank to have filed a case against the billionaire diamantaire, who is believed to be in New York after he had used an allegedly fake passport to escape Hong Kong after Indian authorities turned on the heat. Earlier, PNB had filed a recovery suit amount to $5 million, suggested the report.
While there is no official confirmation on his whereabouts, he was earlier understood to be camping in Hong Kong, following which Indian authorities had filed requests with authorities there to detain Modi – the first step towards bringing him to India. Even as the government continues to stay mum on his location, a Times Now exclusive report suggested that Modi had used a fake passport to escape to the US.
It remains to be seen if law authorities manage to determine his exact location in days to come but according to experts, the damage to India’s bank system has already been done. It has also affected businesses of other traders as banks continue to squeeze loans and credit.