State-owned Punjab National Bank on Wednesday had said it has detected a $1.77 billion (about Rs 11,400 crore) scam where billionaire jeweller Nirav Modi allegedly acquired fraudulent letters of undertaking (LoUs) from a branch in Mumbai to secure overseas credit from other Indian lenders.
"The Bank has detected some fraudulent and unauthorised transactions in one of its branch in Mumbai for the benefit of a few select account holders with their apparent connivance," India's second-biggest state-run bank had said in a regulatory filing. "Based on these transactions other banks appear to have advanced money to these customers abroad."
An LOU is a letter of comfort issued by one bank to branches of other banks, based on which foreign branches offer credit to buyers.
Modi (46), a regular feature on the lists of rich and famous Indians since 2013, and his associates were booked by the CBI on 31 January, for allegedly cheating the state-run Punjab National Bank to the tune of Rs 280 crore. His associates were his family members including his wife Ami, brother, and business partner Mehul Choksi, who is also his maternal uncle. The bank has sent two more complaints to the CBI on Tuesday, saying the scam was worth more than Rs 11,400 crore.
Nirav Modi's flagship or holding company Firestar International has a slew of offices in India in Mumbai, Surat, and globally in New York, Chicago, Johannesburg, Antwerp, Yerevan (in Armenia), Dubai, and Hong Kong.
It has over 20 subsidiary companies which includes Firestar Diamond International Pvt Ltd, Firestar Diamond FZE Co., UAE, Firestar Jewelry Ltd, HongKong, Firestar Diamond International Inc, USA, Firestar Diamond Ltd, Hong Kong and Firestar Holding Ltd, HongKong etc.
Since Firestar International is an unlisted company, we had to dig into ROC (Registrar of Companies) website to gather information about the financial details of the company. Here is a look at Nirav Modi' sprawling over Rs 10,000 crore business empire:
In the past five years, Firestar International's revenue more than doubled (up 108 percent) from Rs 2,177 crore in financial year ending 2011 to Rs 4,534 crore in financial year ending 2016. The company's net profit during the five-year period rose 189 percent from Rs 50 crore to Rs 146 crore. While the company's debt has risen 52 percent to Rs 1,758 crore, its total assets grew by 201 percent to Rs 4,885 crore. Its net worth is a phenomenal 366 percent at Rs 1,578 crore.
On a consolidated basis, Firestar International had a revenue of Rs 12,561 crore in financial year ending 2016, up 21.3 percent over previous year. Net profit surged by 28.1 percent to Rs 432 crore in fiscal 2016. The company's debt remained flat at Rs 3,509 crore while its total assets had a jump of 37 percent to Rs 10,908 crore. Its net worth rose by 30.2 percent to Rs 2,809 crore in fiscal 2016.
Here is a look at financials of Firestar International subsidiaries.
|Firestar International's subsidiaries' financials in Rs crore for FY2016|
|Company||Share capital||Reserves||Total assets||Turnover||Net profit|
|Firestar Diamond International Pvt Ltd||26.25||569.31||2235.77||1928.81||72.87|
|Firestar Diamond FZE Co. UAE||0.18||17.98||171.58||182.66||17.77|
|Firestar Jewelry Ltd, HongKong||0.00||0.00||0.20||1276.92||0.07|
|Firestar Diamond FZE, UAE||50.71||765.75||1891.32||3099.43||216.59|
|Firestar Diamond International Inc, USA||0.00||2.47||137.41||130.92||1.20|
|Fantacy Inc, USA||1.65||22.21||67.12||158.08||8.13|
|Firestar Jewelry Inc, USA||6.61||-35.24||107.74||20.55||-30.93|
|FS Diamond Pty Ltd, South Africa||0.00||0.55||2.90||35.34||4.99|
|Firestar Diamond Ltd, Hong Kong||165.38||87.98||1258.68||1704.62||22.50|
|Firestar Group Inc, USA||19.69||-0.48||73.03||-2.09|
|Firestar Diamond Inc, USA||28.73||-8.20||337.76||398.13||-6.03|
|Firestar Diamond BVBA, Belgium||165.10||57.67||687.96||11.50|
|Firestar Holding Ltd, HongKong||441.47||-1.74||569.82||1578.04||-1.93|
|Nirav Modi Jewels BVBA, Belgium||0.17||-0.15||0.02||-0.05|
|Nirav Modi Ltd, HongKong||19.83||-2.57||63.53||94.79||-0.83|
|Firestar Diamond LLC, Armenia||0.00||-2.50||1.02||6.59||-0.03|
|Firestar Diamond PTE Ltd||0.01||-0.19||0.47||-0.10|
|Nirav Modi Ltd, London||0.00||-1.61||14.36||-1.59|
|Firestar Diamond ooo - Russia||0.01||-0.03||12.12||7.27||0.05|
Here is a look at shareholders of Firestar International
|List of equity shareholders as on 8 December, 2017|
|Name of equity shareholders||% stake|
|Nirav Deepak Modi||52.16|
|ANM Enterprises Private Ltd||27.31|
|Isligton International Holdings PTE Ltd.||4.04|
|Nirav Family Trust (Trustee: Nirav Deepak Modi)||3.45|
|Nirav Modi Family Trust (Trustee: Nirav Deepak Modi)||3.45|
|Jade Bridge Holdings Ltd||3.12|
|Firestone Trading Private Ltd||2.55|
|Forcom Worldwide Investment Ltd||2.00|
|Neeshal Enterprises LLP||0.63|
|Paragaon Merchandising LLP||0.45|
|Neeshal Trading Private Ltd||0.40|
|Paragaon Jewellery LLP||0.23|
|Devdatta Enterprises Private Ltd||0.07|
|Panchajanya Diamonds LLP||0.07|
|NDM Enterprises Private Ltd||0.07|
Here is a look at directors of Firestar International
|List of directors as on 8 December 2017|
|Nirav Deepak Modi||Chairman & director|
|Suresh Chandra Senapaty (former Wipro CFO)||Director|
(with PTI inputs)
Updated Date: Feb 16, 2018 15:07 PM