5 facts you need to know on Nirav Modi Case

The biggest newsbreak of the day is undoubtedly, Nirav Modi and his frauds with Punjab National Bank. The entire scam came into limelight when Enforcement Directorate raided various residences, offices and shops of Nirav Modi the man and the brand across Mumbai, Surat and Delhi. The politics has heated up on the issue with opposition parties attacking Narendra Modi government in regards to the fraud.

Congress party has went even a step further to link Nirav Modi with our Prime Minister Narendra Modi, just because of having a common surname. But the question is, can the Congress party save its face by putting entire blame on BJP government? Does the Congress party have moral rights to blame Prime Minister for this? Here are 5 facts about #NiravGate which you need to know this evening.

1- What’s the Scam.

Punjab National Bank has alleged that they have detected fraudulent transaction of rupees 11,400 crore from its Brady house branch in Mumbai. As per the allegations some junior level officials of the Bank, fraudulently signed MoUs on behalf of Nirav Gupta companies to foreign banks for buyers credit. Buyer credit is a short term credit available to an importer (buyer) from overseas lenders such as banks and other financial institution for goods they are importing. The overseas banks usually lend the importer (buyer) based on the letter of comfort (a bank guarantee) issued by the importer’s bank. For this service the importer’s bank or buyer’s credit consultant charges a fee called an arrangement fee. Letter of Understanding is a bank guarantee and is issued for overseas import payments. A bank, while issuing LoUs for a client (here Nirav Modi), agrees to repay the principal and interest on the client’s loan unconditionally. 

2- Nirav Modi’s rise under UPA-II regime.

Born in India but grown up in Antwerp, Belgium, Nirav belongs to a family of Diamond merchants. But he himself never had interests in the business till 2009 when one of the earrings which he designed for a friend, was heavily praised by people. And since then the man never looked back. In 2010 he established his company on his own name called Nirav Modi. In 2011 he allegedly made huge profits, it was the same year when many of those fraudulent LoUs were signed. In 2013 he made it to the list of Forbes top billionaires. In this period he worked with top national and international celebrities which include names like Priyanka Chopra. All under UPA regime. His bad times apparently started after 2014 when CBI, ED and Tax department started chasing him over allegations of illegal transactions and frauds.

3- Rahul Gandhi attended his programs.

The Congress party is taking jibes after jibes at the Prime Minister for having a common surname with Nirav and allegedly for a picture with him in Davos. But rebel Congress leader Shehzad Poonawalla in a series of tweets has alleged that Rahul Gandhi was present in a Nirav Modi event at Imperial hotel New Delhi. It must be noted that in 2013, Rahul Gandhi’s Congress was still in power.

Omar Abdullah allegedly also attended Nirav’s events. It is being speculated that the man who is accused in mammoth scam of 11,400 crore had very good relations with some top politicians.

4- Nirav Modi is allegedly tenet of a top lawyer politician of opposition.

According to allegations made in a report of Republic TV, Nirav Modi is tenet of a top lawyer-politician belonging to the opposition camp. Republic has claimed that they have evidences proving their allegation and will reveal the name soon.

5- Nirav left the country before CBI issued look out notice.

The CBI issued look out notice against Nirav Modi, his uncle cum partner Mehul Choksi, his brother and his wife on 31st January after receiving first complaint from PNB on 29th. But Nirav Modi reportedly left India far before on 1st January followed by his family.