CBI books top jeweller Nirav Modi in Rs 280 cr cheating case

New Delhi : The Central Bureau of Investigation (CBI) on Monday booked billionaire diamond merchant Nirav Modi, his brother and wife and a business partner in an alleged cheating case of over Rs 280.70 crores.

The arrests have been made against complaint filed by Punjab National Bank, which alleged that Modis conspired with bank officials causing "wrongful loss" to the bank.

"The public servants committed abuse of official position to cause pecuniary advantage to Diamond R US, Solar Exports, Stellar Diamonds and wrongful loss of Rs 280.70 crore to Punjab National Bank during 2017," the FIR has alleged. 

Nirav Modi and others have been booked under the Indian Penal Code (IPC) sections related to criminal conspiracy, cheating and provisions of Prevention of Corruption Act.

The banks said they fraudulently issued eight LOUs totalling USD 4.42 crore, equivalent to Rs 280.70 crore, for Hong Kong based Allahabad Bank and Axis Bank.

"While tracing old entries, it transpired that buyer's credit based on fake LOUs might also have been paid through NOSTRO A/C," it alleged. 

Claiming that public money to the tune of Rs 280.70 crore seems to have been "embezzled" by commiting fraud, the bank asked the CBI to register the case.