Nirav Modi Archives - Lokmarg

Nirav Modi Loses Bid Against Extradition In UK Supreme Court

By LokMarg 15th December 2022

The UK Supreme Court on Thursday denied fugitive diamantaire Nirav Modi’s plea against his extradition to India.

Modi lost the bid to take his fight against extradition to India on charges of fraud and money laundering to the UK’s Supreme Court.

“The appellant’s application for permission to appeal to the Supreme Court is refused,” Lord Justice Stuart Smith said in his statement.

The diamantaire, who fled India in 2018 before details of his alleged involvement in large-scale fraud at the Punjab National Bank became public, has argued there is a high risk of suicide if he is extradited.

In November, Nirav Modi filed an application before the UK High Court for permission to appeal against his extradition to India in the UK Supreme Court. He lost the appeal on Thursday to take his fight against extradition to the UK Supreme Court.

Nirav Modi reportedly filed an application in the High Court in London, seeking permission to appeal against his extradition order, two weeks after a UK court dismissed his plea against extradition back to India.

On November 9, Nirav Modi lost his appeal against extradition to India with a United Kingdom court dismissing his plea. Earlier, the High Court of London (United Kingdom) dismissed the appeal of Nirav Modi, who is wanted in India to face money laundering and fraud cases.

The Ministry of External Affairs (MEA) later welcomed the UK High Court’s decision to reject Nirav’s plea.

“India has been vigorously pursuing the extradition of economic fugitives so that they face justice in India. We welcome the decision of the UK High Court. We want to bring him to India as soon as possible,” said MEA spokesperson Arindam Bagchi during a press conference.

Nirav Modi, who is a prime accused in the Rs 13,500 crore PNB scam, had fled India. He lost his appeal after he had moved the High Court in London against extradition on mental health grounds.

The bench of Justice Stuart Smith and Justice Robert Jay of the High Court said there are “no features of psychotic illness”.

The court rejected Nirav Modi’s counsel’s claims that he will die by suicide due to severe depression and said “Nirav Modi neither is nor is very likely to be at the most severe end of the scale of depressive illness”.

“He has so far displayed no features of psychotic illness. Although he has exhibited persistent suicidal ideation, he has neither attempted suicide or deliberate self-harm nor disclosed plans to do so, except in the vaguest and general way,” the court said.

The High Court also noted the steps taken to render Barrack 12 safe and to ensure that there is effective constant monitoring to reduce both the risk of attempted suicide and the prospect of suicide being committed.

The court noted that the Government of India sought the appellant, Nirav Deepak Modi.

Nirav Modi last year had moved the UK High Court against District Judge Sam Goozee’s Westminster Magistrate Court ruling in favour of his extradition. He is presently behind bars at Wandsworth Prison in southeast London. (ANI)

British HC Rejects Nirav Modi’s Plea Against Extradition

By LokMarg 9th November 2022

Fugitive diamond businessman Nirav Modi on Wednesday lost his appeal against extradition to India with a United Kingdom court dismissing his plea.

The High Court of London (United Kingdom) on Wednesday dismissed the appeal of Nirav Modi, who is wanted in India to face money laundering and fraud cases.

Nirav Modi, who is a prime accused in the Rs 13,500 crore PNB scam, had fled India. He lost his appeal after he had moved High Court in London against extradition on mental health grounds.

The Bench of Justice Stuart Smith and Justice Robert Jay of the High Court said “no features of psychotic illness”.

The Court noted that the appellant, Nirav Deepak Modi, is sought by the Government of India.

The High Court noted the sets of criminal proceedings before it. The first, brought by the Central Bureau of Investigation (“the CBI”), relates to a fraud on the Punjab National Bank, which caused losses equivalent to over £700 million. The second, brought by the Enforcement Directorate (“the ED”), relates to the alleged laundering of the proceeds of that fraud.

“While, as we have said, the arrangements cannot entirely eliminate the risk of suicide, that is not the test. The starting point is that a high threshold has to be reached in order to satisfy the court that Mr (Nirav) Modi’s condition is such that it would be oppressive to extradite him. As we have said, the arrangements that will be in place, which have been the subject of assurances in response to the concerns and promptings of those acting for Modi, are appropriate,” noted the court.

“That is in itself an indication that they will enable the authorities to cope properly with Mr (Nirav) Modi’s condition and the risk of suicide. On the assumption that the arrangements are put into place in accordance with the GoI’s assurances, the residual risk is, in our judgment, greatly reduced, said the bench.

Nirav Modi last year had moved High Court against District Judge Sam Goozee’s Westminster Magistrate Court ruling in favor of extradition. He is presently behind the bars at Wandsworth prison in southeast London. (ANI)

Yes Bank Debacle & Crony Capitalism

By Sanjoy Narayan 10th March 2020

The recent debacle of the Indian private sector bank, Yes Bank, whose board was suspended and superseded by the Reserve Bank of India (RBI), once again brings into sharp focus the extent and depth to which crony capitalism continues to prevail in the country’s economy.

Yes Bank was founded in 2004 by Rana Kapoor and his brother-in-law, the late Ashok Kapur. Early this month, the Central Bureau of Investigation (CBI), registered a criminal case against Kapoor, who was the CEO of Yes Bank; Dewan Housing Finance Ltd. (DHFL), a non-banking financial services company; and its promoter, Kapil Wadhawan. The CBI charged them with criminal conspiracy, cheating and corruption under the Indian Penal Code and the Prevention of Corruption Act.

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The allegations are that between April and June 2018, Yes Bank subscribed or invested Rs 3700 crores in DHFL’s short-term debentures. This financial assistance subsequently turned into non-performing assets as the bank was unable to recover the funds. More seriously, the allegations are that in lieu of the amount extended to DHFL, a company, Do it Urban Ventures, promoted by Kapoor’s three daughters, and received kickbacks in the form of loans amounting to around Rs 600 crores. In other words, the CBI alleges that Kapoor and DHFL entered into a conspiratorial quid pro quo: DHFL got the assistance (that have now turned into bad loans) and he and his family benefited from the kickbacks.

Rana Kapoor in custody of Enforcement Directorate

The agency has alleged that Rana Kapoor extended financial assistance to DHFL to get substantial undue benefit for himself and his family members via companies held by Kapoor and his family. On March 5, India’s central bank, the Reserve Bank of India, announced that it had suspended and superseded the board of Yes Bank. Customers were prevented from withdrawing more than Rs 50000 from their accounts and rating agencies downgraded the bank’s core bonds.

Yes Bank’s debacle turns the focus sharply on the continued prevalence of crony capitalism in India’s economy: an unholy nexus between banks, financial institutions (FIs), and business enterprises. Banks and FIs—and not only privately owned ones—in India are known to have cosy relationships with promoters of large and medium sized Indian companies and quid pro quo arrangements of the sort that Kapoor and Yes Bank are accused of are not uncommon. Rather, it is quite the opposite. Examples of misuse of bank funds are galore in the Indian economy.

One high-profile case is that of liquor baron Vijay Mallya who is currently in the UK while the Indian government is trying to get him extradited so that he can face investigation into charges levelled against him. Mallya is accused of misusing around Rs 9,000 crore (US$1.3 billion), which are loans that his companies, including a now-defunct airline that he started, took from 17 Indian banks. The allegations are that Mallya siphoned off these funds to 40 other companies that he controls around the world.

ALSO READ: Nirav Modi Arrested In London

In another headline-grabbing case in 2018, the CBI began an investigation into Nirav Modi, a high-profile Indian jeweller, on allegations that he and his partners defrauded the Punjab National Bank of Rs 28,000 crore, which he is alleged to have siphoned overseas by fraudulently obtaining letters of undertaking for making payments to overseas suppliers. Modi is absconding and is believed to be in the US even as the Interpol is looking for him.

More recently, in December 2019, another high-profile executive, Jagdish Khattar, the former managing director of Maruti Udyog Ltd., India’s largest carmaker, was booked by the CBI for charges against him of cheating the Punjab National Bank of Rs 110 crore. That case is still being investigated although Khattar has not been arrested.

These few examples are really the tip of the iceberg. Nefarious deals between banks and influential entrepreneurs abound in India. Not long ago, a private sector steel company was embroiled in a similar controversy when a partly government-controlled financial institution was believed to be lending it vast sums of money although past loans taken by the company had turned into non-performing assets.

The curious paradox about such cases is that in many of the cases, the authorities, including investigative agencies, wake up when it is already too late. In Yes Bank’s case, the RBI has been issuing warnings about financial inconsistencies in the bank’s reports. Doubts about Mallya’s ability to run his airline and manage his finances have been floating around long before he fled India.

The other, more disheartening, aspect of all this is the hagiographical treatment that the media have meted out to some of these controversial promoters and businessmen. Vijay Mallya, now 64, has had countless laudatory cover stories or “puff pieces” about him. Rana Kapoor, an aggressive publicity seeker, has found similar success with the Indian media. Jagdish Khattar was routinely lionised by India’s business press during his stint as managing director of Maruti between 2002 and 2007.

The truth is that India’s institutions, particularly in the financial sector, are prone to misuse—either because of the clout of powerful corporate borrowers or because of complicit bank officials, or both. India’s government has various laws, organisations and agencies that have been established to prevent financial fraud. Yet, with regular frequency, shocking instances of brazen misuse of the financial system come to light. What is needed is a will to break the cronyism that plagues the nexus between financiers and their corporate clients. And when frauds come to light, swift dispensation of justice could work as a deterrent.

Nirav Modi Faces Arrest In London

By LokMarg Publishing 19th March 2019

In a major development, a London court on Monday issued an arrest warrant against diamond merchant Nirav Modi, who is wanted in India for an alleged loan default case, according to the sources in the Enforcement Directorate.

The arrest warrant was issued by the Westminster Court, the sources added.

India had already requested the extradition of Nirav Modi from the United Kingdom.

The development comes days after the fugitive was tracked down to a 33-storey Centre Point Apartment complex in London’s Theatre District.

The tower was an office complex and was converted into luxury residences with prices ranging from PS2 million to PS55 million all with superb views over the city of London.

Modi is believed to be living in a property worth PS8 million apartments in the tower, the rent for a similar apartment in the tower comes to approximately PS17,000 a month, stated the Daily Telegraph.

On March 9, Ministry of External Affairs spokesperson Raveesh Kumar had said that India is making strong efforts to bring back the fugitive businessman and was waiting for a response from the United Kingdom with regard to its extradition request sent in August last year.

At a media briefing here, Raveesh Kumar said the government is aware of Modi’s presence in the UK and had made the request for his extradition in August last year. He added that the fact the UK was sent that request clears that India is aware of his presence in that country and action has been initiated for his extradition.

Nirav Modi, one of the prime accused in the PNB scam in India. Modi is the subject of an extradition request by India, along with an Interpol Red Corner Notice being issued for the PNB scam accused. Modi is the prime accused in the Rs 13,000 crore PNB fraud, along with his uncle Mehul Choksi.

Choksi was granted citizenship of Antigua and Barbuda on January 15, 2018, while Modi is in London.

Both Modi and Choksi left India in January last year before the PNB scam came out in the public. The duo has not returned to India despite repeated summons from probe agencies and courts. (ANI)