The Diamond King, produced by Daily Telegraph reporters Mick Brown and Robert Mendick, traces Nirav Modi’s rise as an international diamantaire, his disappearance from India, and his arrest in London.
Indian authorities accused Modi of defrauding Punjab National Bank of more than $1 billion using inflated loans backed by fraudulent letters of undertaking (LOUs).
The LOUs allowed Modi’s businesses to access foreign currency for imports and exports; however, he allegedly used them to secure loans against collateral that did not exist. Mendick said Modi secured the loans by exaggerating his businesses' trade activity.
“Some of these loans would then get repaid, but they would be repaid with bigger loans,” he said.
“So it was similar to a pyramid or Ponzi scheme. It becomes like an endless carousel, and then when it stops, it stops.”
Indian authorities filed charges against Modi in February 2018, by which time he had already left India. A year later, following a tip, the reporters located Modi in London. They observed him near his apartment for 10 days before approaching him on Oxford Street.
“There was an Interpol notice on this man, and yet he’d been hiding in plain sight in London,” Mendik said.
“He was living his best life in some ways, running his business and living in this glorious huge apartment with spectacular views of London.”
When confronted, Modi declined to comment on the allegations or his location, which the publication reported, leading to his arrest afterwards. He was held in a British jail for seven years while fighting extradition to India.
Before the allegations, Modi built an international luxury jewellery brand, opened three US stores, and planned to expand to 100 locations within a decade.
Brown noted that Modi’s brand was among the first Indian luxury names to gain an international presence, with top designers and celebrity endorsements, including Kate Winslet, wearing its jewellery at the Academy Awards. The podcast examines his jewellery business, the alleged fraud, and the investigation that led to his downfall.
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