Nirav Modi case is still not wrapped as 24 companies and 18 businessmen filed a petition with the case of criminal conspiracy, financial bankruptcy against him for taking the franchise of their jewellery brand between 2013 and 2017.
The case involves bonafide credit to all the related firms which is converted into as bad credit and can extend the estimate amount of Rs20,000cr.
The businessmen and firms opened showroom of Gitanjali jewellery in Agra, Meerut, Bengaluru, Delhi, Mysuru, parts of Gujarat and Rajasthan and Karnal.
Choksi firm and franchisees signed a three-year agreement which fixed a minimum guarantee commission(MCG) by Choksi at 12% per annum on security deposit, excluding the rent from the showroom. However, the stocks are either not renewed nor the rent was paid on time. The items were send at the cost much lesser the market rates even.
The first fraud detected by the choksi firm was in 2013 when a Delhi-based businessman, Vaibhav Khurania. He opened a store in Rajouri Garden but soon had to shut it down as Choksi was unable to send him the stock of Rs3 crore even khurania has paid for it.
One of the FIR in 2015 in Karnataka stated that Hari prasad was unable to receive rental of Rs5 crore to sell Gitanjali jewellery.
The choksi however always tried to dominate the cases filed against him by supressing the FIR and later on, it was registered only after the intervention of the court.
The finance ministry will soon hold a meeting for all the state run banks and ensure to trace the extend of the fraud.
A finance ministry official said, “The meeting will soon be called for all the state-run banks where we assess the total exposure, steps taken by the banks and the further course of action”.
Investigation agency will now probe Nirav Modi case to overseas branches of Indian banks which includes Allahabad Bank (Hong Kong), State Bank of India (Mauritius and Frankfurt), Bank of India (Antwerp) and Axis Bank (Hong Kong).