In a major operation in the multi-crore Punjab National Bank (PNB) scam, the CBI on Tuesday arrested and brought back Subhash Shankar Parab, who is a close associate of Nirav Modi, to India from Cairo in Egypt and sent to CBI custody till 26 April. He was deputy general manager (DGM-finance) in Nirav Modi’s group of Firestar Diamond company and played a significant role in siphoning off money. He is also understood to be a key witness to the letters of undertaking (LoU) submitted to PNB to siphon off over Rs 7,000 crore. On 29 June 2018, Interpol issued Red Corner Notice against him. Two chargesheets have been filed against him—one supplementary and one main chargesheet. In one of the chargesheets he is accused of threatening the witness.
The CBI has, after a long diplomatic and legal process, managed to secure “administrative extradition” or deportation of Parab, who could spill the beans on the country’s biggest banking scam allegedly perpetrated by Nirav Modi and Mehul Choksi with a combined loss of Rs 13,000 crore, the CBI informed. CBI, while seeking remand for Parab, told the court, “Parab left the country the day Nirav Modi did. He had clear knowledge about what was happening in the country. During the investigation, it was found that he was dealing with the PNB for the fraudulent LoUs. The documents were prepared on the instructions of Parab and they were submitted also on his instructions. He was also coordinating with foreign banks and the bank selections and bargaining for the buyers’ credit was also done by Parab. He was in absolute control for fund rotation. This happened in Hong Kong as well. He was at first in Dubai and then in Cairo. From 2015, he had been in full control. Several original documents are still missing. He will be able to throw light on how the LoUs were produced. The accused was arrested today.”
Subhash Shankar Parab was also instrumental in keeping the dummy directors of Nirav Modi’s shell companies involved in the fraud at Cairo to avoid their arrest in the case after the CBI and Enforcement Directorate (ED) had registered cases against him in India in the Rs 6,500 crore PNB loan fraud case on the instructions of Nirav Modi’s brother Nehal. Curently, noth Nirav Modi and Choksi are wanted for allegedly siphoning off Rs 13,500 crore of public money from the state-run PNB, using the LoUs and agency thinks that the arrest of Parab will help in spilling of more beans and tightening the noose around both.