Why is this billionaire Modi being called a conman?

Agencies
February 16, 2018

Nirav Modi's rise to fame and fortune was meteoric. The Indian billionaire left his mark almost everywhere. On Hollywood red carpets, his diamonds have sparkled on the necklines and dangled from the earlobes of actors and models like Kate Winslet, Dakota Johnson and Rosie Huntington-Whiteley.

Back in India, billboards above the traffic jams of New Delhi bear the image of Priyanka Chopra, a Bollywood star and former Miss World who is fast becoming a household name in the United States, also adorned with Modi's jewels.

But on Thursday, officials at the nation's federal investigative agency announced it was looking for Modi as law enforcement officials fanned out to raid his jewellery stores and other businesses in Mumbai and New Delhi.
Central Bureau of Investigation (CBI) officials told reporters the agency had on February 4 issued a lookout circular in the country for Modi, who they say had left four weeks earlier.

Nirav Modi, who has a net worth of some $1.8 billion according to Forbes magazine rankings, has not yet responded to the allegations.

His flagship company, Firestar Diamond, has said it had no involvement in the case.

The setback in Nirav Modi's climb to fame and fortune was abrupt, even by the rough-and-tumble standards of one of the world's fastest growing major economies.Recently, when asked how he planned to raise funds to add new stores, he seemed unconcerned.

"All options are open," he said, sitting in his cavernous Mumbai office. "We could use internal accruals. We can take loans from banks or we could do an initial public offering." But last month, India's second-largest state-run lender filed a criminal complaint with the CBI that accused Modi and others of defrauding the bank and causing it a loss of 2.8 billion rupees ($43.8 million).

Then on Thursday, the same bank, Punjab National Bank , publicly alleged that Modi was involved with a much larger fraud case: $1.77 billion from a single branch stretching back to 2011.

The news was a shock for the circles in which Nirav Modi moved.

As recently as last month, he was at the World Economic Forum in Davos. Indian media carried a group photograph with Prime Minister Narendra Modi in the foreground and Nirav Modi, who is no relation, grinning between rows of Indian business leaders behind him.

"Top industrialists invited him home to display his collections," said a Mumbai investment banker at a US-based firm who has worked directly with Modi's company. "There was a personal touch in everything he sold. Nirav Modi is a brand." A senior member at Bharat Diamond Bourse, a Mumbai-based industry body with more than 13,000 members, sketched a similar profile of Modi.

"In one of the industry meetings in 2013 he said that when people wear a Cartier ring they don't say it's a diamond ring, they say it's Cartier," said the member, who did not want to be named. "He always wanted people to say they are 'wearing Nirav Modi'."

The beginning

Modi grew up in Antwerp, Belgium, in a diamond-dealing family. In 1990, at the age of 19, he moved to Mumbai.
Nine years later, Modi started his own company, Firestar Diamond Ltd., selling loose stones. He employed fewer than a dozen people at the time. By last year, the number was more than 2,000.

Born in India and raised in Antwerp, the diamond capital of the world, Modi is a third-generation diamantaire.

Modi grew up in the thick of the diamond business, but described as a soft-spoken and unassuming man by those who know him, aspired to be a music conductor.

But it was not music that he finally pursued, he joined the family business of his maternal uncle at Gitanjali Gems Ltd in Bombay (Mumbai) at 19 after dropping out the of University of Pennsylvania’s Wharton School. Uncle Mehul Choksi, chairman, Gitanjali Gems, is one of the four accused in the ongoing CBI investigation, although he has denied being associated with any of Modi’s companies.

It was his initial nine years at Gitanjali Gems in the 1990s that laid the foundation for Modi’s own jewellery business.

Modi’s tryst with jewellery design happened by chance, in 2009, when he was persuaded to design a pair of earrings for a friend.

Within a year he went on to become the first Indian to feature on the cover of a Christie’s auction catalogue in 2010 for a Golconda diamond necklace that fetched $3.56 million at its auction in Hong Kong. In October 2012, his Riviere Diamond Necklace was sold for $5.1 million at a Sotheby’s auction in Hong Kong. In 2013, Modi entered the Forbes list of billionaires.

Today, the brand manages to hold its own among rivals like the century-old Van Cleef and Arpels and Richemont SA’s Cartier, and his clients include Hollywood star Kate Winslet who wore diamond creations by the jewellery designer for her red-carpet walk at the 2016 Oscars. In addition, many of India’s biggest business families have been buying diamonds from him for years.

Modi is ranked 1,234 in Forbes’s world’s billionaires list for 2017, and 85 in India. His financial worth is estimated at $1.73 billion through his jewellery design and retail businesses, according to the Forbes website.

At the peak

Firestar Group, the parent company Modi controls as a majority shareholder, saw its revenue grow over three years from 103 billion rupees (about $1.6 billion at current rates) to some 147 billion rupees ($2.3 billion) by the 2016-17 fiscal year, according to figures previously provided by the company.

In 2010, Modi launched an eponymous jewellery business branded NIRAV MODI, in capitals, with the tagline "Haut Diamantaire". New boutiques in Las Vegas and Hawaii have since been added to a stable that stretches from New York to London to Beijing.

He became a man whose diamond necklaces were sold, with his name attached, by Sotheby's. "Pure feminine elegance," says a Hong Kong auction catalogue note of one 85.33 carat diamond necklace.

The auction house posted an online slideshow of jewellery-on-stars at the 2017 Oscars and highlighted supermodel Karlie Kloss having "a major Nirav Modi moment with her diamond 'Mughal' choker." But the celebrity links could be starting to break.

A spokesperson for Chopra, the film star, said in a statement: "She is currently seeking legal opinion with respect to terminating her contract with the brand in light of allegations of financial fraud against Nirav Modi."

The fall

Punjab National Bank, India's second-largest state-run lender, sought to soothe investors on Thursday after the discovery of a $1.77 billion scam at a single branch sent its shares plunging and raised fears about the scale of fraud in the sector.

Investigators launched raids across Mumbai and New Delhi, targeting offices and homes linked to Nirav Modi. The steep fall has wiped off $1.27 billion from PNB's market capitalisation in the past two days.

The billionaire jeweller left India on January 1, before a police case was registered against him later that month, a federal police source said. His current whereabouts are unknown.

Law minister Ravi Shankar Prasad said the authorities had seized assets worth 13 billion rupees ($203 million) from Modi and initiated action to revoke his passport.

PNB's Mehta said Nirav Modi had written to the bank about a possible repayment, but had not yet come up with any concrete plan.

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News Network
November 18,2024

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Mangaluru: The Ullal police have arrested Manohar, the owner of Vazco Beach Resort, and its manager Bharath in connection with the drowning of three college girls from Mysuru at the resort’s swimming pool on November 17.

City Commissioner of Police Anupam Agrawal confirmed the arrests, stating that a case has been registered under Section 106 of BNS. The bodies of the victims, all in their twenties, have been handed over to their parents. The women had arrived at the resort for a weekend getaway on November 16.

Following the tragic incident, the resort was sealed by officials led by Mangaluru Assistant Commissioner Harshavardhan. The trade license of the resort, issued on June 13, 2024, has been suspended, and the tourism department has temporarily revoked the resort's registration. These actions prohibit the resort from engaging in any tourism-related activities until further notice.

Someshwara TMC Chief Officer stated that the suspension was due to the resort's failure to implement adequate safety measures, which resulted in the loss of three lives. Further investigations are underway.

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News Network
November 13,2024

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New Delhi: The Supreme Court took a firm stance on ‘bulldozer justice’ today, affirming that the Executive cannot bypass the Judiciary and that the legal process must not prejudge the guilt of an accused. In a significant judgment, the bench led by Justices BR Gavai and KV Viswanathan set new guidelines for demolition practices, responding to petitions challenging the controversial bulldozer actions taken against individuals accused of crimes.

The rise of this practice, termed 'bulldozer justice,' has seen authorities in various states demolish what they claim to be illegal structures belonging to accused individuals. However, multiple petitions questioned the legality and fairness of this approach, bringing the matter before the court.

Justice Gavai highlighted that owning a home is a cherished goal for many families, and an essential question was whether the Executive should have the authority to strip individuals of their shelter. “In a democracy, the rule of law protects citizens from arbitrary actions by the state. The criminal justice system must not assume guilt,” stated the bench, underscoring that due process is a fundamental right under the Constitution.

On the principle of separation of powers, the bench reinforced that the Judiciary alone holds adjudicatory powers and that the Executive cannot overstep these boundaries. Justice Gavai remarked, “When the state demolishes a home purely because its resident is accused of a crime, it violates the doctrine of separation of powers.”

The court issued a strong warning about accountability, stating that public officials who misuse their power or act arbitrarily must face consequences. Justice Gavai observed that selectively demolishing one property while ignoring similar cases suggests that the aim might be to penalize rather than enforce legality. “For most citizens, a house is the product of years of labor and dreams. Taking it away must be an action of last resort, thoroughly justified,” he said.

In its directives under Article 142 of the Constitution, the Supreme Court established new demolition guidelines. These include:

Mandatory Show-Cause Notice: No demolition should occur without first issuing a show-cause notice. The person served has a minimum of 15 days or the duration stated in local laws to respond.

Transparency of Notice Content: The notice must include specifics about the alleged unauthorized construction, the nature of the violation, and the rationale for demolition.

Hearing and Final Order: Authorities are required to hear the response of the affected individual before issuing a final order. The homeowner will have 15 days to address the issue, with demolition proceeding only if no stay order is obtained from an appellate authority.

Contempt Proceedings: Any breach of these guidelines would lead to contempt proceedings. Officials who disregard these norms will be personally accountable for restitution, with costs deducted from their salaries.

Additionally, the court mandated that all municipal bodies establish digital portals within three months, displaying show-cause notices and final orders on unauthorized structures to ensure public transparency and accountability.

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News Network
November 26,2024

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Islamabad: Four paramilitary personnel and two policemen have been killed and over 100 security personnel injured as the protest by supporters of jailed former prime minister Imran Khan turned violent prompting the federal government to deploy the army in the national capital along with shoot at sight orders on Tuesday, state-run media said.

Pakistan deployed the army amid a tense stand-off with Khan's supporters from his Pakistan Tehreek-e-Insaf (PTI) pushing forward by removing hurdles on their way to Islamabad's D-Chowk venue as the government vowed to foil their attempt “even if a curfew needs to be imposed.”

Radio Pakistan said a vehicle rammed into Pakistan Rangers personnel killing four Rangers officials on the Srinagar Highway in Islamabad late on Monday night. Five other Rangers personnel and several police officials too sustained severe injuries.

About five kilometres from this spot, a bunch of miscreants, equipped with weapons and ammunition, pelted stones on the Rangers personnel and carried out indiscriminate firing on the security personnel at Chungi No 26 in Rawalpindi, Radio Pakistan said.

It also reported that two policemen were killed but didn't provide any details.

According to Punjab police, one policeman was killed at Hakla interchange on Islamabad outskirts during clashes with the PTI protestors on Monday but it also did not give details about the second policeman.

Separately, Interior Minister Mohsin Naqvi said, at a late night media interaction, that more than one hundred security personnel, mostly from police, were injured and added: “One senior police officer (SP) was critically injured – he suffered a severe head injury -- due to stone-pelting by protesters.”

Radio Pakistan further reported that the Pakistan Army was called in “to deal with the miscreants with an iron hand” and “clear orders have also been issued to shoot miscreants and troublemakers on sight.”

Strongly condemning the attack on Rangers and police personnel by protesters, Prime Minister Shehbaz Sharif, in a statement, directed to immediately identify those involved in the incident and ensure they are brought to justice.

“Attacks on police and Rangers, under the guise of a so-called peaceful protest, are condemnable,” he said, adding, the anarchist group seeks bloodshed and “Pakistan cannot afford any form of chaos or bloodshed. Bloodshed for nefarious political agenda is unacceptable and highly condemnable.”

He also instructed to provide the best possible medical facilities to those injured.

Interior Minister Naqvi said the government had offered an alternative venue to the protestors to stage their activity at Sangjani in the suburbs of the capital and apparently Khan has also agreed to it.

Despite permission given by Khan, “maybe there is a leadership above Imran Khan who has refused to accept this,” he claimed and confirmed that talks were going on with the PTI to resolve the issue and that the PTI leaders were allowed to meet Khan twice on Monday to get his input.

The government is waiting for a formal response to its offer of an alternative venue for protest and “we are now waiting for PTI’s response before taking further steps,” Naqvi added.

Naqvi also warned that “come what may, the PTI would not be allowed to stage a protest at D Chowk and even hinted of imposing a curfew if needed.”

Security sources also said that all necessary measures are being taken to counter terrorist activities by disruptive and extremist elements. “All the miscreants are also being identified to bring them to justice,” the sources added.

Meanwhile, the PTI accused the authorities of using violence in which several of its supporters have been injured. A PTI spokesman told BBC Urdu that at least two supporters have also been killed but it was not confirmed from other sources so far.

Khan, 72, the PTI founder, has been in jail since August 5, 2023, and had given the ‘final call’ for the protest to force the authorities to release all prisoners, including himself, and also restore the alleged stolen mandate or victory of his party in February 8 elections as well as rescind the last month's 26th constitutional amendment allowing the government more powers over judiciary.

Earlier on Sunday, led by Khyber-Pakhtunkhwa Chief Minister Ali Amin Gandapur and Khan's wife, Bushra Bibi, the PTI supporters began their journey from the militancy-hit province with a mission to make it to D-Chowk in the national capital but faced obstacles on the roads.

The D-Chowk, close to several important government buildings: the Presidency, the PM Office, the Parliament, and the Supreme Court, is a prime location in the national capital.

The authorities had blocked the highways by placing shipping containers but the protestors accompanied by lifting equipment and other heavy machines worked their way by removing hurdles, but the hurdles did skittle their speed and plans.

The convoy entered Islamabad from Sangjani toll plaza. The party also shared footage of the KP convoy in Islamabad’s limits.

The government already banned rallies by imposing Section 144, a colonial era law used to outlaw political activities, as a high level delegation from Belarus was visiting Pakistan.

At least one policeman was killed and dozen others injured in clashes on Monday as thousands of the PTI protestors entered the territorial jurisdiction of the national capital. In one of the clashes, a policeman was killed at the Hakla interchange on Islamabad outskirts.

Another constable of the Sargodha police was injured due to “firing by miscreants” and was being treated, local media said, adding, dozens of other policemen too were injured in the clashes, but exact details were not available.

As the convoy entered the capital territory in the evening, Bushra Bibi said in a video message: “My brothers, as long as Imran is not with us, we will not end this march.”

Meanwhile, as announced on Monday, all public and private educational institutions would remain closed in view of the law and order situation both at Islamabad and Rawalpindi on Tuesday.

Khan has been implicated in dozens of cases since his government was dismissed through a no-confidence motion in 2022. He has been in Adiala Jail at Rawalpindi since last year facing over 200 cases.

His party won the largest number of seats in the February general elections despite contesting as independents as the party was denied an election symbol.

The party founder has alleged that the ruling Pakistan Muslim League-Nawaz (PML-N) and its coalition partners, including the Pakistan Peoples Party (PPP), had “stolen the mandate” to grab power at the federal level.

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