Tuesday, March 6, 2018

Tax auditor for Nirav firm failed to raise red flag: CBI

Rebecca.Samervel@timesgroup.com  06.03.2018

Mumbai: The CBI alleged on Monday that a tax auditor for the Nirav Modi group did not raise a red flag despite being aware of three unsecured loans amounting ₹5,100 crore availed by group companies Diamond R US, Solar Export and Stellar Diamond, and that too from a single bank — PNB, Brady House branch, Mumbai. Countering CBI’s submissions made during the remand hearing of Sanjay Rambhia, who has been doing the companies’ audits since 2001, his lawyer said that he had done his job and pointed out the transactions to the tax authorities. He said that instead of being made an accused, Rambhia could be the “best witness” in the case.

Special CBI judge SR Tamboli remanded Rambhia, partner in CA firm Sampat and Mehta; former AGM (operation) of the Modi-owned Firestar International Manish K Bosamiya; former finance manager, Firestar International, Miten Pandya; and Aniyath Nair, then director of Mehul Choksi-owned Gili India Ltd, in CBI custody until March 17. The four accused were arrested on Sunday bringing the total number of arrested accused in the case to  18.

CBI special prosecutor A Limosin submitted that in the financial statements for the three firms for the year ending March 31, 2017, the auditor mentioned in the notes forming part of financial statements that the firms had availed buyer’s credit or payment of overseas payable for goods on letters of undertaking (LoU) from the bank and that they had not provided any security or guarantee. The auditor is duty-bound to check the background of unsecured loans, CBI submitted.

Seeking the CBI custody of Bosamiya and Pandya, the CBI told the court that former was in Firestar International from 2005-15, while the latter was still employed there. CBI said that they had knowledge since 2011 that the fraudulent LoUs were being issued by PNB and that they also helped prepare the applications for them. Advocates for the duo, Vijay Aggarwal and Yashwardhan Tiwari, opposed the need for custodial interrogation. Aggarwal said that they had been in CBI custody for more than 24 hours having been detained on Sunday morning, making the arrests illegal. The defence also moved a plea seeking preservation of the CCTV footage of the CBI office and register entries showing what time the duo entered the office. The court will hear the plea on March 12.

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