PNB fraud case : Nirav Modi’s ex-director moves HC for quashing LOC


New Delhi: A former director of diamantaire Nirav Modi’s company moved the Delhi High Court seeking quashing of a Look Out Circular (LOC) issued against him after lodging of an FIR by the CBI in the PNB fraud case.

The high court sought response of the CBI on the plea by Sanjay Rishi, an Overseas Citizen of India residing in the United States, seeking direction to the authorities to withdraw the LOC. Justice Rajiv Shakdher issued notice to the CBI and SFIO, which is also conducting an investigation into the matter, and listed the matter for further hearing on July 25.

Rishi, president of American Express for South Asia, was appointed as a non-executive independent director of Nirav Modi’s Firestar International Ltd on December 6, 2016 and he resigned from the post on February 7, this year. He said he did not take part in the day to day affairs of the company.

Senior advocate Siddharth Luthra, appearing for Rishi, submitted that an FIR was lodged on March 4 for the alleged offences of cheating, criminal conspiracy under the IPC and the provisions of the Corruption Act and when summonses were issued to him, he voluntarily came to India and joined the CBI investigation. The counsel argued that Rishi was not being allowed to leave the country due to continuation of the LOC and his work was being hampered in the US.

Rishi, in his plea, said he was detained at the IGI airport on his arrival on March 15 and was asked by the CBI to appear before it at Mumbai the next day.

He said details of the LOC have not been given to him, and due to the LOC, he has not been able to return to USA and such restrictions on his travel are wholly unwarranted and unjustified and in absolute violation of fundamental rights.

The March 4 FIR alleged that directors, chief finance officer and finance officer of Firestar International Ltd, Firestar Diamond International Pvt Ltd, other directors/ promoters, company officials and unknown public servants of Punjab National Bank entered into a criminal conspiracy, pursuant to which PNB, Mumbai was allegedly cheated to the tune of Rs 321.88 crore over the period 2013-17.

Billionaire Nirav Modi, his uncle Choksi and others are being investigated by multiple probe agencies after the scam came to light in January following a complaint by the PNB that they had allegedly cheated the nationalised bank to the tune of Rs 11,400 crore, with the purported involvement of a few employees of the bank. The ED has registered the money laundering case against Modi, his firms and others on the basis of a CBI FIR.

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