Mumbai cops net Nirav Modi's aide Subhash Shankar Parab from Cairo

Subhash Parab (in black mask) with CBI officials in the city

Four years after the Rs 13,000-crore Punjab National Bank fraud case came to light, the Central Bureau of Investigation has managed to get custody of Subhash Shankar Parab, a close aide of fugitive Nirav Modi, after he was deporter from Cairo in Egypt. Parab was arrested and produced before the special CBI court in Mumbai on Wednesday and has been remanded in CBI custody till April 26.

According to the CBI, Parab was closely associated with Nirav Modi and was posted as deputy general manager (finance) of Modi's Firestar International Pvt Ltd from April 2015 till the time the case was registered. He also allegedly played an important role in securing fraudulent Letters of Undertaking (LOUs) from PNB. In 2018, the federal agency issued red corner notices against Nirav Modi, his brother Nishal Modi and Parab.

Subhash Shankar Parab

Seeking his custody, CBI told the court that Parab was looking after banking related activities of three accused firms - M/s Diamonds R US, M/s Stellar Diamond and M/s Solar Exports. "He was heading the banking operations department of the company, preparing applications for issuance of fraudulent LOUs and its supporting documents. The applications of LOUs and other related correspondences pertaining to the fraudulent LOUs were prepared on his instructions. Subhash Parab had knowledge that the three accused firms did not have any credit facilities with PNB and were not providing 100 per cent cash margin for issuance of the LOUs," read CBI's remand application.

CBI said, "He was also instrumental in handling the finances of six Hong Kong-based and 13 Dubai-based dummy companies floated by Nirav Modi. On account of issuing these fraudulent LOUs and circular transactions from the above-mentioned dummy companies, a wrongful loss to the tune of R6,498.20 crore was caused to PNB."

Sources said Parab could spill the beans on one of country's biggest banking scams wherein Nirav Modi and his uncle Mehul Choksi caused losses of R13,000 crore to PNB. The CBI first registered a case in January 2018 based on a complaint from PNB deputy GM Avneesh Nepalia and filed a charge sheet against 22 accused including Nirav Modi and Parab in May 2018.

Nirav was arrested in London in 2019 based on the request and evidence produced by Indian agencies, however he is contesting his extradition to India. Meanwhile, Choksi has taken citizenship of Antigua and Barbuda in 2017 using the citizenship investment programme and fled the country in 2018.

April 26
Day till when Subhash Parab will be in CBI custody