The Oriental Bank of Commerce (OBC) has issued notices to Fugitive diamantaire Nirav Modi and his uncle Mehul C. Choksi, according to IANS. The two have been termed wilful defaulters for unpaid loans by their respective firms.
OBC is set to merge with Punjab National Bank, which had accused Modi and Choksi of fraud in February 2018 to the tune of over Rs 13,500 crore. The bank issued the notice at its corporate branch in Cuffe Parade, Mumbai, on Friday.
According to the bank, Choki’s companies Gitanjali Gems Ltd. and Nakashatra World Ltd. defaulted on loans worth Rs 136.45 crore and Rs 59.53 crore respectively, while Modi’s companies Firestar International Pvt. Ltd. and Fire Star Diamond International Pvt. Ltd. did not repay loans worth Rs. 60.41 crore and Rs 32.25 crore respectively.
The bank had declared Modi and Choksi’s assets as non performing assets (NPAs) on March 21, 2018, days after the duo fled India. Modi went to the United Kingdom while Choksi sought refuge in Antigua.
The bank has warned the public to desist from entering into any deals with the duo’s companies, putting out a request for any information of assets that could help them recover the ‘public money’ due from them.
Modi was arrested by London authorities in March after he was sighted in public. While India is working towards having him extradited, Choksi has surrendered his passport to Antiguan authorities in order to avoid the same. In June, however, Antigua said they would revoke his citizenship. India’s Enforcement Directorate has been seeking to have Choksi declared a fugitive economic offender under the Prevention of Money Laundering Act.
Modi has been in judicial custody since August 22.
The merger of PNB, OBC and the United Bank of India was announced as part of the recent move to merge ten banks into four, with the aforementioned union to result in the second largest bank in India after SBI.
