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Mumbai: The Mumbai office of Cyril Amarchand Mangaldas was raided by a Central Bureau of Investigation (CBI) team last week in connection with the Punjab National Bank scam triggered by Nirav Modi.
It is understood that the firm was involved in one banking assignment that it took up few weeks before the scam was uncovered. However, according to sources, the firm had immediately terminated the assignment as soon as the scam was uncovered.
We also understand that the firm had not even started to work on the assignment when the PNB scam came to light.
Sources reveal that the firm fully cooperated with the CBI team that undertook the raid sometime last week.
It is also understood that the firm has neverdealt with Nirav Modi or his companies prior to this.
We attempted to reached out to Cyril Amarchand Mangaldas several times for comment before running this story. However, the firm has declined to comment on the same.
On February 14, Punjab National Bank had said in regulatory filing that it had discovered fraudulent and unauthorized transactions amounting to Rs.11,400 crore at a branch in Mumbai.
Three of diamantaire Nirav Modi’s companies had requested buyers’ credit to pay overseas suppliers. Since they had no pre-arranged credit limit, the branch official asked the companies to put down the full amount as collateral so that the bank could issue the Letters of Undertaking (LoUs) to authorize the credit.
It later came to light that two junior employees at the Mumbai Branch of the Bank had helped the companies of Nirav Modi and his uncle Mehul Chowksi.
