PNB's going public destroyed my ability to repay debt: Modi
What's the story
Nirav Modi, the man behind India's largest bank fraud, has blamed PNB's "anxiety to recover dues immediately" for his failure to repay the loans, which he claims is much less than the reported Rs. 11,400cr. "The erroneously-cited liability resulted in media frenzy" which destroyed his "brand and business" and left him unable to discharge dues, he wrote in a letter to the PNB management.
PNB
'PNB had acknowledged buyers' credit facility, there was no default'
In Modi's letter, he refers to some offer he made before PNB went public, and discussions between his representatives and bank officials, presumably aimed at resolving the matter. He added that PNB had acknowledged its buyers' credit facility to Modi's three firms for several years and that there has been no default. PNB had earned crores of rupees on the facility, he added.
Assets
'Could have repaid with now-frozen accounts and now-sealed assets'
Moreover, the Rs. 11,400-cr figure cited was "entirely incorrect and the liability of the Nirav Modi Group is substantially less," he wrote. His domestic business worth Rs. 6,500cr as well as assets worth Rs. 5,649cr "could have helped reduce/discharge the debt." "However, now that stage appears to have passed" since his accounts had been frozen and property seized.
Quote
'Neither brother, wife nor uncle associated with my business operations'
He also denied that his relatives, including his brother, are associated with his business. "My wife is not connected with any business operation and she has been wrongly named. My uncle is also wrongly named. None of them are aware or concerned with my dealings."
Conclusion
'Request you to be fair, allow to pay employees' salaries'
"Whatever may be the consequences I may face, the haste was, in my humble submission, unwarranted," Modi wrote. He requested the bank to allow him to pay salaries of his 2,200 employees from the firms' current accounts. He also urged it to "be fair, and support my efforts to make good all the amounts that are found due by my group to all banks."
Information
Nirav Modi and his family left India in January
Modi had left India on January 1. He's suspected to be in Dubai but there's no confirmation. His brother Nishal, a Belgian citizen, had left the same day. Uncle Mehul Choksi left on January 4, and wife Ami, an American citizen, followed on January 6.