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Indian authorities file fresh case against jeweler in Punjab National Bank fraud

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Indian authorities file fresh case against jeweler in Punjab National Bank fraud

India's Central Bureau of Investigation has filed a new case against jeweler Nirav Modi for allegedly colluding with several others to defraud Punjab National Bank through different loans between 2013 and 2017, Indo-Asian News Service reported March 8.

The CBI registered the case after state-owned lender Punjab National Bank uncovered circular transactions between Modi's Firestar group of companies and partnership companies Solar Exports, Stellar Diamonds and Diamond R Us during internal investigations. The bank reported the accounts of Firestar Diamonds and Firestar International as fraud to the central bank.

In addition to Modi, other executives of Firestar Diamonds International were named in the new complaint, namely Vipul Ambani, former finance president, and Ravi Gupta, chief finance officer.

Modi was first charged, together with his uncle Mehul Choksi of Gitanjali Group and other family members, in February for allegedly defrauding the bank of US$2 billion. Staff at a Mumbai bank branch allegedly used cross-border payments company SWIFT's encrypted messaging system to send requests to other banks without the required approvals, circumventing Punjab National Bank's "core" banking system, allowing Modi and his associates to fraudulently obtain loans.

Modi and Choksi had fled India before Punjab National Bank filed the complaints.

As of March 8, US$1 was equivalent to 65.14 Indian rupees.