New Delhi: The employees of billionaire jewellers Nirav Modi and Mehul Choksi, kingpins behind the Rs 11,400 crore Punjab National Bank (PNB) fraud case, used a code language to discuss about the business transactions, sources said. Zee Media has decoded the codes that the employees would use to discuss LoUs and transactions.
The CBI has registered two cases involving Modi and Choksi. These relate to fraudulent issuance of 150 Letters of Undertaking (LoU) (a kind of bank guarantee) worth Rs 6,498 crore and 143 LoUs worth Rs 4,886 crore. The ED has also registered two separate cases to probe money laundering allegations against Choksi and Modi.
The codes used by them were as follows:
Property - LoU
Property Value - Amount of LoU
Property Location - Overseas Importer location
Token - Margin Money
Commission on property - Bribe commission
Clear Title - No records to be maintained.
Uncle – Choksi
Friend - Nirav
Agent - Clerk in the bank
Example of a illustrative communication:
One of my friends needs a property in Hong Kong. His budget is Rs 10 crore. He wants to give minimum or no token. See if you can suggest a property for him from your network. Property must have clear titles. Friend will give 1 percent commission on the property deal.
Decoding the illustrative communication:
Client needs an LoU of Rs 4 crore for an overseas importer in Hong Kong. He won't give any margin money for the LoU. See if you can make this LoU without maintaining any official record. Commission for this job would be 1 percent of the LoU amount.
What is an LoU
An LoU is a guarantee which is given by the issuing bank to Indian banks having branches abroad to grant short-term credit to the applicant. In case of default, the bank issuing the LoU has to pay the liability to credit giving bank along with accruing interest.
The CBI has arrested the General Manager-rank officer of PNB Rajesh Jindal. Jindal was holding the charge of Branch Head at PNB Brady House branch, Mumbai during August 2009 to May 2011. It is alleged that during his tenure at PNB Brady House branch, the practice of issuance of LOUs without sanctioned limits to Nirav Modi group firms had started.
-(Reported by Rakesh Trivedi)