Nirav Modi's aide Subhash Parab arrested by CBI in Mumbai
What's the story
Subhash Shankar Parab, a close associate of fugitive Nirav Modi, was brought to India from Cairo and arrested by the Central Bureau of Investigation (CBI) in Mumbai on Tuesday, according to reports. Parab, 49, is believed to be Nirav Modi's right-hand man and a senior director in two firms in Dubai. Parab was a key figure in the Punjab National Bank (PNB) scam.
Context
Why does this story matter?
Modi, whose jewelry empire once redefined luxury, is accused of orchestrating the biggest fraud in India's banking history to the tune of Rs. 13,578 crore. Modi fled the country, later settled in London, and was tracked by a journalist with The Telegraph. He was arrested by UK authorities in March 2019. The case is under investigation by the CBI and Enforcement Directorate (ED).
PNB scam
What was Parab's role in PNB scam?
The PNB scam investigation revealed that Parab personally monitored the collection of fraudulently issued letters of undertaking (LoUs) in collusion with PNB official Gokulnath Shetty. Parab allegedly used to order his subordinates to visit the PNB branch at Mumbai's Brady House to obtain the original bank documents and deliver them to the office of Diamond R US—one of the three firms that defrauded PNB.
Crime
Parab in-charge of transactions worth Rs. 8,200 crore
According to investigators, Parab was personally in-charge of monitoring the incoming and outgoing money transfers of six Hong Kong corporates that received nearly Rs 8,200 crore from PNB's letters of undertaking (LoUs) on Modi's behalf. After the scam was revealed in early 2018, Parab fled to Cairo, around the same time Modi and his uncle Mehul Choksi also fled India.
Case
What is the status of everyone involved in the case?
Parab will be brought before a Mumbai court soon to be taken into custody. In 2018, a charge sheet was filed against him. Modi and Choksi have been classified as fugitive economic offenders. Modi is currently imprisoned in the Wandsworth prison on the outskirts of London in the United Kingdom. Choksi was last said to be in Antigua and Barbuda.