Bangalore based businessman, Hari Prasad, claims that Nirav Modi — a diamond merchant linked with Rs 11000 crore PNB fraud case — would had been behind bars by now if the Prime Minister Narendra Modi-led government had acted to the whistle he had blown on the ongoing fraud in 2016.
The businessman claims that he had detailed about the illegal transactions being made by Nirav Modi and Gitanjali Jewels to the PMO office.
Hari Prasad to News Nation said, "In 2012 he has opened Geetanjali franchise store. I had invested Rs 10 crore. He had agreed to give jewelery worth the amount but gave jewelery worth Rs 5 crore only. I had lodged a complained against the company after five months."
The Bangalore based businessman in the letter had mentioned, "This company has taken huge loans to the tune of almost Rs 9872.0 crores with meagre assets of just Rs 25-30 Crores and definitely going to become NPA soon. Someone need to investigate the credit report of this group with these banks."
The letter was received by the PMO office on July 26, 2016 and forwarded to ROC Maharashtra.
Here is the full letter
Satyam group-Hyderabad. This scam and fraud done by the person/company based in Mumbai involving loss of Rs 1000s of crores of Indian Public money which is under way by.
Details of the Fraudster.
Person: Mr Mehul C. Choksi,
Chairman and Managing director.
Company: M/S Gitanjali Gems Limited.
Regd. Office: A-1, 7th Floor, Lakshmi Tower,
Bandra Kurla Complex,
Bandra East. Mumbai 4000051. India.
1) Enclosed herewith PDF of the copy of the Complaints by Various franchisee victims against M/S Gitanjali Gems Ltd & Mr. Mehul Choksi and its various subsidiary/sister companies made to various regulators but no action has been taken by any one of them till Now. Having failed to get the attention of any serious investigating authority, We have finally come to your door for justice.
(2) This person has siphoned out thousands of cores out of India. Details as explained in the pdf document attached.
a) As stated in their annual report AM 14/15. There are lot of deficiencies in the balance sheets.
b) List of 31 Banks extending Loans to this group.(Pls refer to the Page-4) This company has taken huge loans to the tune of almost Rs 9872.0 crores with meagre assets of just Rs 25-30 Crores and definitely going to become NPA soon. Someone need to investigate the credit report of this group with these banks.
c) Tax liabilities are increasing year by year. This company is not paying Tax dues to Income tax authorities consistently from 2006 onwards which is running into thousands of crores.. (refer to Page 66, 67, 83, 84, 85 n 88 ) This means chances of him defaulting on payment are increasing by the year.
d) Consolidated balance sheet (page Nos 109 to 112) which says that.. his tangible assets are very very small. while large portion of it is shown as inventories and trade receivable which are manipulated n inflated figures. and loans are to the tune of 9700 crores.. Based on this kind of apparently fictitious balance sheet, any one with basic financial knowledge can understand there is something fishy with this company and its activities. He could have managed the banks by some means.
e) Pls also look at page 141 & 142 where in you can see that most of the Indian subsidiaries are in Losses and foreign subsidiaries are in profit.
f) Which is quite contrary to the economic situation of the west.. West is still in recession and India is growing at 7-8%.. IN such a scenario.. how cum .. his foreign companies are profitable and Indian companies are in loss. Assumable Choksi has siphoned out India money abroad. This deserves a detailed and thorough investigation by technical experts.
(3) We are enclosing List of several cases filed by various victims including banks and financial institutions. like LIC..which is self explanatory.
a) The Chairman and MD Mr Mehul C Choksi has a knack of misusing the law to his advantage by appointing fleet of senior advocates/auditors and consultants and drag the matters till it come to his neck.
b) Accordingly, in various cases such as (FIR 48/2015 and FIR 80/2015 at Central Police station in Bangalore) filed on him and his companies, he failed to get any relief from courts in the anticipatory bail petitions and finally he found it more convenient to somehow manipulate/manage Local police to get the some kind of B report to escape the arrest.
c) There are several victims all over India and Fighting various cases on their Individual capacity which Mr Mehul C choksi of M/S Gitanjali Gems Limited but somehow This person and his group goondas easily manage to crush by using his mussel and money power who ever raises his voice against him. There is lot more information we can offer to you but we are not able to get the right authority who will do a thorough investigation on this kind of huge frauds.
I Hope you will do your best quickly to depute a right person to investigate this fraud and save the country from loosing of thousands of crores.