Published
Mar 1, 2018
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GJEPC summons Modi, Choksi

Published
Mar 1, 2018

The Gem and Jewellery Export Promotion Council (GJEPC) have demanded an explanation within seven days from members Nirav Modi and Mehul Choksi over the ongoing Punjab National Bank fraud case.

The CBI have stated that they do not know Modi’s current whereabouts - Nirav Modi- Facebook


After previously stating that they would consider revoking the memberships of diamond tycoons Nirav Modi and Mehul Choksi should they be found guilty of fraud at the Punjab National Bank (PNB), the GJEPC have now issued a notice demanding that the two explain themselves. The notice stipulates that Modi and his uncle Choksi have seven days to explain themselves. Failing that, the GJEPC could cancel their membership and even send red flags to the gem and jewellery trading community both in India and abroad which could lead to the companies effectively being blacklisted.

The Vice Chairman of the GJEPC, Colin Shah, said about the notice: “The council has issued show cause notices to the defaulters for alleged siphoning off funds fraudulently through PNB. GJEPC reiterates its condemnation to this unfortunate and ‘one off’ incident in the Indian gem and jewellery industry.” So far there has been no reply from Modi or Choksi.

The Central Bureau of Investigation (CBI) sent an email to Modi on February 28 requesting his cooperation in the investigation and that he returns to India by next week. Modi has so far denied any wrongdoing and has stated that he is too busy abroad with business to return to India at the moment. In an official statement on the same day, the CBI also stated that they do not know Modi’s current whereabouts.

The fraud case that is not only rocking the Indian jewellery industry but is also one of the biggest in India’s history began when the PNB discovered that fraudulent loans had been given to businesses owned by Modi and Choksi. The total suspected fraud has now reached 12,700 crore rupees (approximately 1.9 billion US dollars) and involves around 30 banks who gave out loans to Modi and Choksi’s businesses based on fraudulent information.

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