A special court on Tuesday remanded a former executive, Subhash Parab, of fugitive businessman Nirav Modi's firm Firestar International, in the Central Bureau of Investigation's (CBI) custody for 14 days till Apr 26, for investigation in the Rs. 6,498 crore in Punjab National Bank (PNB) scam case.
The agency had brought him to India from Cairo. Producing him before the court, the agency told the court that he had left the country the same day as Nirav Modi had in 2018, immediately after the scam broke out in public, to evade the process of law.
Special Public Prosecutor A. Limosin told the court that Parab had not responded to notices by it and that a red corner notice was issued against him. Further, the court was informed that he was a close confidante of Nirav Modi, was directly reporting to him and had knowledge of his fraudulent activities. He was looking after the banking-related activities of three of the diamantaire's firms - Stellar Diamonds, Diamonds R US and Solar Exports and it was under his instructions that applications for the issuance of the fraudulent LoU's were prepared. The agency also told the court that he was instrumental in handling the financials of six Hong Kong-based and 13 Dubai-based dummy companies of Nirav Modi.
As per the CBI's case, 150 LoU's were issued to overseas branches of Indian Banks, a total amounting to Rs. 6,498 crores, due to which the bank suffered a corresponding loss.
Parab's advocate argued against his custody and said that he was merely an employee of Nirav Modi's firm and that he was not involved in the issuance of LoUs.
Parab is the 16th arrest in the case of a total of 18 accused.
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