Runaway jeweller Nirav Modi.

UK court rules Nirav can be extradited; no evidence he won’t get justice: Judge

Fugitives can't sit easy in other jurisdictions, escape justice: CBI

Agency Report | New Delhi | 25 February, 2021 | 11:00 PM

Jeweller Nirav Modi, wanted for fraud and money laundering in the Rs 14,000-crore Punjab National Bank (PNB) loan scam, can be extradited to India, a UK judge has ruled, dismissing arguments like his mental health worsening during the pandemic and poor Indian prison conditions. "I am satisfied that Nirav Modi's extradition to India is in compliance per human rights," said District Judge Samuel Goozee, adding that he had the right to appeal the order. While the order takes Nirav Modi a step closer to extradition, it may take months yet to wade through appeals, as it has been seen in the case of another high-profile accused, liquor baron Vijay Mallya.

In a major setback to fugitive diamond merchant Nirav Modi, a UK court on Thursday ordered his extradition in connection with the Rs 13,500 crore Punjab National Bank (PNB) loan fraud case, after almost a two-year-long legal battle.

The District Judge at the Westminster Magistrates’ Court, Samuel Goozee, accepted the prima facie evidence against Nirav Modi for money laundering, saying: “I am satisfied that Nirav Modi’s extradition to India is in compliance with human rights.

The District Judge also said that Nirav Modi has the right to appeal the order.

“There is no evidence that if extradited, Nirav Modi will not get justice,” the judge said.

Goozee also made it clear that he felt that the case for Nirav Modi to face trial in India was strong and that the diamantaire had clear links with “other connivers”, including bank officials, in faking ‘letters of undertaking’ (LoUs) that facilitated huge unpaid loans.

The Judge pointed out that Nirav Modi had personally written to the PNB acknowledging the debt and promising to repay it, while the CBI is investigating if Nirav Modi’s firms were dummy partners.

He also said that these companies were shadow companies operated by Nirav Modi.

“I do not accept that Nirav Modi was involved in a legitimate business. I find no genuine transactions and believe there is a process of dishonesty,” the Judge added.

Expressing satisfaction over the detention condition and medical arrangements in India, the Judge said, “Conditions in Barack 12 (at the Arthur Road Jail in Mumbai) look far better than his current cell in London.”

The observations came after Nirav Modi’s side had argued that he can’t be extradited to India due to his worsening mental health during the Covid-19 pandemic and the poor conditions in the Indian prisons.

According to sources, the court ruling will now be sent to UK Home Secretary Priti Patel for a sign-off. Depending on the outcome, appeals may be made in the high court by either side.

The charges against the fugitive diamantaire centre around his firms Diamonds R Us, Stellar Diamonds and Solar Exports for making fraudulent use of a credit facility offered by the PNB, known as ‘letters of undertaking’ (LoUs).

Arguing on behalf of the Indian authorities, the Crown Prosecution Service (CPS) in the UK had earlier sought to establish that a number of PNB staff conspired with Modi to ensure the LoUs. The LoUs were issued to his companies without required credit checks, sans recording the issuance of the LoUs and without charging the required commission upon the transactions. This resulted in a fraud amounting to nearly $2 billion (Rs 13,500 crore).

Nirav Modi was arrested on an extradition warrant on March 19, 2019, on charges of money laundering, conspiring to destroy evidence and intimidating witnesses.

Nirav Modi is facing a probe by the Central Bureau of Investigation (CBI) for a large-scale fraud upon PNB through fraudulently obtaining LoUs or loan agreements. He is also being probed by the Enforcement Directorate (ED) in a case relating to the laundering of the proceeds of that fraud.

Meanwhile, he also faces two additional charges of “causing disappearance of evidence” and “intimidating witnesses” or “criminal intimidation to cause death”, which were added to the CBI case.

The ED has attached several assets of Nirav Modi running into crores of rupees in connection with the case.

Even Nirav Modi’s sister Purvi Modi, a Belgian national, and her husband Maiank Mehta have turned approvers in the loan fraud case. The ED in January this year had said that both became approvers for assisting the agency in the confiscation of two flats in New York, and one each in London and Mumbai, and the balance lying in two Swiss bank accounts and a bank account in Mumbai, totalling to Rs 579 crore.

In June last year, the ED had attached four bank accounts of Nirav Modi and Purvi, having a balance of Rs 283 crore, as part of its investigation into the case.

Even Nirav Modi’s uncle, Mehul Choksi of the Geetanjali group who is believed to be in Antigua, is being probed in connection with the case.

The Central Bureau of Investigation (CBI) claimed it as a “significant” achievement in its efforts to curb corruption.

It also said that the UK court ruling is “a reminder that fugitives, who have eluded the process of law after commission of large value frauds, cannot consider themselves above the process merely because they have changed jurisdictions”.

In a statement, CBI spokesperson R.C. Joshi said that the Westminster Magistrates’ Court in London has accepted the Indian government’s contention, holding that the evidence against Nirav Modi is “prima facie” sufficient to order his extradition to India to face the charges.

He said that the court also accepted the Indian government’s assurances and rejected Nirav Modi’s submissions regarding human rights violations, fair trial and prison conditions.

Rejecting the defence arguments, the UK Court decided to send his case to the Home Secretary for a final decision, he said.

“The judgement also vindicates the painstaking investigation by CBI, especially since Nirav Modi had raised various issues with regard to the admissibility of evidence, the fairness of the investigation, trial, prison conditions, availability of health facilities in India and extraneous consideration, with a view to divert attention from his own acts,” he said.

Detailing the probe against Nirav Modi, Joshi said that the agency had registered the case on January 31, 2018, against the partner of three private firms and others, including then officials of PNB, on a complaint from the bank alleging that the accused had hatched a criminal conspiracy amongst themselves to defraud it to the tune of Rs 6,498 crore by fraudulently issuing Letters of Undertaking (LoUs).

He said during its investigation, the CBI conducted searches at 42 premises and arrested 15 persons.

“A large number of witnesses were examined and voluminous documents were collected. Investigation revealed that the accused PNB officials, in conspiracy with said owners of the firms and others, had fraudulently issued a large number of LoUs to overseas banks for obtaining buyer’s credit in favour of said three firms without any sanctioned limit or cash margin and without making entries in the CBS system of the bank,” he said.

The CBI spokesperson said that investigation further revealed that the fraud was allegedly perpetrated despite the circulars issued by the Reserve Bank of India.

He said that the agency filed first charge sheet on May 14, 2018, against 25 accused including Nirav Modi, and the second charge sheet was filed on December 20, 2019, against 30 accused. These included 25 accused chargesheeted earlier in respect of 150 outstanding fraudulent LOUs which had resulted in wrongful loss of Rs 6,805 crore to PNB including the interest and other charges paid by it to overseas banks which had extended buyer’s credit to the said three firms of Nirav Modi on the strength of the fraudulent LOUs.

It was also alleged that Nirav Modi, in conspiracy with other accused, had siphoned off the funds obtained as buyer’s credit through dummy companies established by him in Dubai and Hong Kong which were shown as exporters of pearls to the three Nirav Modi firms and importers of pearl-studded jewellery from them, Joshi said.

Nirav Modi had escaped India on January 1, 2018 before registration of the case by the CBI.

A non-bailable arrest warrant was issued by the trial court against him on May 23, 2018 and red notice was also issued against him on June 29, 2018 by Interpol.

Joshi said that the first extradition request was sent by the CBI to the UK in August 2018, Nirav Modi was arrested by UK Police in London on March 19, 2019 and his repeated applications for bail were rejected by the Westminster Magistrates’ Court and London High Court.

He said that after the second charge sheet was filed in December 2019, additional evidence were submitted to the court in London for the total fraud amount of Rs 6,805 crore.

A second extradition request for the offences of intimidating the witnesses and destruction of evidence was also submitted to the UK government.

“The extradition proceedings against Nirav Modi were initiated before the Westminster Magistrate Court in London. In extradition requests, CBI submitted voluminous oral and documentary evidence to substantiate the charges of criminal conspiracy, cheating, criminal breach of trust, criminal misconduct by public servants, destruction of evidence and criminal intimidation,” he said.

The hearing of the first extradition request was held in Westminster Magistrates’ Court, London during May 2020 and the hearing of the second extradition request during September 2020.

“CBI gracefully acknowledges the painstaking and continuous efforts made by the counsel of the Crown Prosecution service in forcefully presenting Indian government’s case and also the efforts of various government agencies, especially officers of High Commission of India, London, Ministry of Home Affairs, Ministry of External Affairs, in coordinating the extradition trial, timely submission of evidence and assurances and prompt follow up of the case at all stages,” Joshi added. (IANS)