In the first FIR related to Modi, three partnership firms controlled by him were named but not flagship Firestar.CBI said PNB, under consortium banking, sanctioned fund and non-fund-based credit limits to the Firestar Group. The fund-based and nonfund-based credit lines issued to Firestar International were not to exceed Rs 380 crore, of which Rs 259.37 crore were outstanding to PNB on March 4 since the amount was recalled on February 8. Similarly, of the sanctioned limit of Rs 72.5 crore for Firestar Diamond International , Rs 62.51 crore was owed to PNB.CBI noted in its third FIR that circular transactions took place between Modi-promoted partnership firms Solar Exports, Stellar Diamond and Diamonds R Us — mentioned in the first FIR — and his other promoted flagship Firestar International and Firestar Diamond International. In the case of Firestar International, PNB was the lead bank, while Union Bank is the lead bank for Firestar Diamond International.The fund-based and non fund-based facilities of Rs 321.88 crore were disbursed by PNB’s Brady House branch in Mumbai. In view of this, PNB’s head office has declared the accounts of Firestar International and Firestar Diamond International as “fraud” and the bank has reported the same to the Reserve Bank of India.

Source: Economic Times March 09, 2018 02:37 UTC