In the letter, the bank told Modi to submit a concrete and implementable plan to pay back the liabilities. The PNB letter was in response to a letter sent on Monday by Nirav Modi to banks
affected by the scam saying the companies controlled by him were unable to clear their dues owing to actions taken in “haste” by PNB.
“In the anxiety to recover your dues immediately, despite my offer, your actions have destroyed my brand and the business and have now restricted your ability to recover all the dues leaving a trail of unpaid debts,” Modi had said in his letter to various banks, including PNB.
He also said the operations of his companies Firestar International Private Ltd (FIPL) and Firestar Diamond International Private Ltd (FDIPL) had effectively ceased owing to raids launched by investigative agencies, including the Enforcement Directorate and the Central Bureau of Investigation.
“This has thereby jeopardised our ability to discharge the dues of the group to the banks.
I would request you to permit salaries for FIPL and FDIPL to be paid for the 2,200 employees from the balance lying in the current accounts. Our HR head will send you a break-up of the monthly salary,” Modi had said, adding the inventory, including assets and receivables, of FIPL and FDIPL and three other firms could have settled the pending dues to the banks.
To Modi’s letter saying that the bank had closed all avenues to recover dues by going public, PNB said in a regulatory filing on Thursday that it followed lawful avenues available under law of the land to recover the dues.
PNB Managing Director and Chief Executive Officer Sunil Mehta had said last week that Modi, in his email exchanges, had come up with “vague offers” to repay the amounts due and had not submitted a concrete plan.