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
February 3,2020

Mumbai, Feb 3: Maharashtra Chief Minister Uddhav Thackeray, whose party severed ties with the BJP after the state elections, on Monday said that if somebody breaks a promise, "pain and anger is obvious".

"No, I did not get any shock," Thackeray said in an interview with Shiv Sena mouthpiece Saamana while talking about forming an alliance with NCP and Congress, and becoming the Maharashtra Chief Minister.

"I am a son of Shiv Sena Pramukh (Balasaheb Thackeray), several people tried to give a shock to me but they didn't succeed. This is a field where you have to accept in the beginning that there will be a bit pushing and pulling," Thackeray said.

He added that accepting the Chief Minister's post was not a shock for him and neither was it his "dream at any point of time".

"But I can say one thing for sure that I had decided to go to any level to fulfil the promise which I made to Balasaheb Thackeray. I want to further clear it that me becoming Chief Minister is not the fulfilling of the promise made to Shiv Sena Pramukh but it's just a step towards that. I will fulfil every promise which I made to my father," Uddhav Thackeray said.

"There are several types of shock. Did people like it or not, it is the important part. I have spoken on this issue (alliance with NCP and Congress) several times and even people have understood this. Making promises and keeping them are two different things. If someone breaks a promise, pain and anger is obvious," he added.

The Chief Minister said that he does not know if BJP "has come out their shock till now or not."

"But I have to say if they had kept their promise what would have happened, what a big deal had I asked for? Did I ask for stars and moon? I only asked for what was decided before Lok Sabha polls, when we decided seat distribution," he said.

He further said, "Maharashtra and the country are watching (who betrayed/shocked whom), I don't need to say much on this."

Soon after the Assembly election results, Shiv Sena demanded rotation of the chief minister's post and equal power-sharing in the state government, which was rejected by then ally BJP. The weeks of political stalemate led to the imposition of President's rule on November 13.

Firm on its demands, Sena, the second-largest party in the state, did not hesitate to cobble up with the ideological opponents -- NCP and Congress -- and was given the chief minister's post.

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News Network
January 18,2020

New Delhi, Jan 18: Lieutenant Governor (LG) Anil Baijal has granted the power of detaining authority to the Delhi Police Commissioner under the National Security Act (NSA), according to a notification. The NSA allows preventive detention of an individual for months if the authorities feel that the individual is a threat to the national security, and law and order, sources said.

In exercise of the powers conferred by sub-section (3) of section 3, read with clause (c) of Section 2 of the National Security Act, 1980, the Lt Governor is pleased to direct that during the period January 19 to April 18, the Delhi Police Commissioner may also exercise the powers of detaining authority under sub-section (2) of the section 3 of the aforesaid Act, the notification stated.

The notification has been issued on January 10 following the approval of the LG.

It comes at a time when the national capital has been witnessing a number of protests against the Citizenship Amendment Act (CAA) and the National Register of Citizens (NRC).

However, the Delhi Police said it is a routine order that has been issued in every quarter and has nothing to do with the current situation.

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Agencies
May 4,2020

Washington, May 4: Anxious for an economic recovery, President Donald Trump fielded Americans' questions about decisions by some states to allow nonessential businesses to reopen while other states are on virtual lockdown due to the coronavirus.

After more than a month of being cooped up at the White House, Trump returned from a weekend at the Camp David presidential retreat in Maryland and participated in a “virtual” town hall, hosted Sunday night by Fox News Channel, from inside the Lincoln Memorial.

He pushed for an economic reopening, one his advisers believe will be essential for his reelection chances this November.

“We have to get it back open safely but as quickly as possible," Trump said.

The president acknowledged fear on both sides of the issue, some Americans worried about getting sick while others are concerned about losing jobs.

Though the administration's handling of the pandemic, particularly its ability to conduct widespread testing, has come under fierce scrutiny, the president defended the response and said the nation was ready to begin reopening.

“I'll tell you one thing. We did the right thing and I really believe we saved a million and a half lives,” the president said.

But he also broke with the assessment of his senior adviser and son-in-law, Jared Kushner, saying it was “too soon to say" if the federal government was overseeing a “success story."

Trump's impatience also flashed. While noting that states would go at their own pace in returning to normal, with ones harder hit by the coronavirus going slower, he said that “some states frankly I think aren't going fast enough" and singled out Virginia, which has a Democratic governor and legislature.

And he urged the nation's schools and universities to return to classes this fall.

But many public health experts believe that cannot be done safely until a vaccine is developed.

Trump declared Sunday that he believed one could be available by year's end although his own pandemic task force has predicated it could be another 18 months.

Federal guidelines that encouraged people to stay at home and practice social distancing expired late last week.

Debate continued over moves by governors to start reopening state economies that tanked after shopping malls, salons and other nonessential businesses were ordered closed in attempt to slow a virus that has killed more than 66,000 Americans, according to a tally of reported deaths by Johns Hopkins University.

The U.S. economy has suffered, shrinking at a 4.8 per cent annual rate from January through March, the government estimated last week. It was the sharpest quarterly drop since the 2008 financial crisis.

Roughly 30.3 million people have filed for unemployment aid in the six weeks since the outbreak forced employers to shut down and slash their workforces. It was the worst string of layoffs on record.

Larry Kudlow, Trump's top economic adviser, on Sunday predicted a “spectacular 2021” — with “the right set of policies” — on top of a rebound from July through December of this year.

He said on CNN's "State of the Union" that the administration would "pause” to review the effectiveness of trillions in economic relief spending before making any decision on whether additional aid is needed.

House Speaker Nancy Pelosi, D-Calif., said Thursday that state and local governments are seeking up to USD 1 trillion for coronavirus costs, The Senate planned to reopen Monday, despite the Washington area's continued status as a virus hot spot and with the region still under stay-at-home orders.

The House remains shuttered. The pandemic is forcing big changes at the tradition-bound Supreme Court: The justices will hear arguments, beginning Monday, by telephone for the first time since Alexander Graham Bell patented his invention in 1876.

Congressional Republicans are resisting calls by Democrats for emergency spending for states and local governments whose revenue streams all but dried up in recent weeks.

The GOP is counting on the country's reopening and the rebound promised by Trump as their best hope to forestall another big round of virus aid.

The leaders of California and Michigan are among governors under public pressure over lockdowns still in effect while states such as Florida, Georgia and Ohio are reopening.

Michigan Governor Gretchen Whitmer, a Democrat, said Sunday that the armed protesters who demonstrated inside her state's Capitol “depicted some of the worst racism” and “awful parts” of US history by showing up with Confederate flags, nooses and swastikas.

Trump had tweeted “LIBERATE” and named Michigan and other states in mid-April. In a new tweet Friday, he urged Whitmer to “make a deal” with the protesters. “These are very good people, but they are angry.

They want their lives back again, safely!” Trump said.

Despite the opposition of Michigan's Republican-controlled Legislature, Whitmer has extended a state of emergency declaration and directed most businesses statewide to remain closed.

Some people participating in other public protests across the US have not kept their distance from one another and have rallied without masks, not heeding public health recommendations.

Deborah Birx, coordinator of the White House coronavirus task force, called that behavior “devastatingly worrisome.”

She said people will feel guilty for the rest of their lives if they end up infected and unwittingly spread the virus to vulnerable family members.

“We need to protect each other at the same time we're voice our discontent,” she told CNN's “State of the Union.”

An overwhelming majority of Americans support stay-at-home orders and other efforts to slow the virus' spread, according to a recent survey from The Associated Press-NORC Center for Public Affairs Research.

Asked about states that are reopening before they meet benchmarks laid out in federal guidelines she helped write, Birx said the guidelines “are a pretty firm policy of what we think is important from a public health standpoint.”

She added that she and others have made it clear that people must continue practising social distancing, “scrupulous” hand washing and other measures to protect themselves and others.

Fox News Channel said it asked viewers to submit questions about reopening the country on the network's Twitter, Facebook and Instagram accounts for a chance to appear on the rare broadcast from the Lincoln Memorial. Trump spoke from the memorial's steps last July Fourth.

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