Nirav Modi: ED moves to probe Nirav Modi’s overseas businesses, assets
MUMBAI: The Enforcement Directorate investigating the over Rs 11,000-crore PNB fraud case on Monday approached a Mumbai court docket searching for issuance of Letters Rogatory (LRs) for acquiring details about the abroad companies and property of diamantaire Nirav Modi.
“It’s an utility for issuance of LR beneath the Prevention of Cash Laundering Act (PMLA) for restoration/seizure of proceeds of crime and assortment of paperwork, proof mendacity in Hongkong, USA, UK, UAE, South Africa and Singapore that are required in reference to the investigation,” the ED stated in its plea earlier than the PMLA court docket.
Letters Rogatory are a request from a court docket of a sovereign nation to a court docket of one other sovereign nation.
Decide M S Azmi at the moment heard the arguments of particular public prosecutor Hiten Venegaonkar.
The ED advised the court docket that Nirav Modi established numerous corporations, together with Diamond R US, Photo voltaic Exports, Stellar Diamond, Firestar Diamond, and have become an built-in diamond producer who purchased tough diamonds, offered polished ones and different stones and in addition designed jewelry.
His enterprise consisted of buying and selling in tough and polished diamonds, personal label jewelry manufacturing and sale within the title and magnificence of ‘Nirav Modi’ and ‘Firestars’ in addition to manufacturing of unlabelled jewelry for third events, the ED stated.
“He unfold his enterprise operations in numerous international locations, together with Hongkong, USA, UK, UAE, South Africa and Singapore. He had apparently bought issued a number of excessive worth Letters of Enterprise (LoUs) in favour of his corporations/ firms from Punjab Nationwide financial institution which resulted in disbursement of funds as per the SWIFT messages despatched by PNB,” the ED stated in its plea earlier than the court docket.
“It was later discovered by the financial institution that the identical had been issued fraudulently since there was no report of the stated LoUs within the financial institution’s data”, it stated.
SWIFT (Society for Worldwide Interbank Monetary Telecommunications) is a messaging community for securely transmitting directions for all monetary transactions by means of a standardised system of codes.
The ED stated that by this prison act of dishonest and conspiracy, the accused generated enormous proceeds of crime amounting to Rs 6,498 crore which had been siphoned off by them and thereby laundered and amalgamated in mainstream monetary system to venture it as untainted property.
“Sure a part of the proceeds of crime concerned in cash laundering are fairly believed to be parked in (international locations overseas),” the appliance stated.
On January 31, the CBI had registered an FIR towards Nirav Modi, his firms, and diamond jeweller Mehul Choksi. Later, the ED additionally began its probe.
The CBI has to this point arrested Vipul Ambani, the president (finance) of Nirav Modi’s Fireplace Star Diamond, Kavita Mankikar (govt assistant and authorised signatory of three corporations — Diamond R US, Stellar Diamond, Photo voltaic Exports), Arjun Patil (senior govt, Firestar group) and Rajesh Jindal, the then head of the Brady Home department of PNB.
The others arrested are: Bechhu Tiwari, the then chief supervisor within the Foreign exchange division of PNB, Yashwant Joshi, the Scale II supervisor within the Foreign exchange division, Praful Sawant, the Scale-I officer dealing with the exports part, Gokulnath Shetty, the then deputy supervisor (now retired) of PNB, Manoj Kharat, a single window operator of PNB, and Hemant Bhat, the authorised signatory of Nirav Modi’s firm.
Amongst these arrested in reference to Choksi’s corporations are Nakshatra group and Gitanjali group CFO Kapil Khandelwal and Gitanjali group supervisor Niten Shahi.
The FIR had listed eight fraudulent transactions price over Rs 280 crore, however primarily based on additional complaints from the financial institution, the CBI stated the quantum of quantity within the first FIR is over Rs 6,498 crore, involving 150 LoUs allegedly issued fraudulently by Shetty and Kharat.
The remaining 150 fraudulent LoUs price over Rs four,886 crore issued for Gitanjali group of firms had been a part of the second FIR registered earlier this month by the company towards Choksi and his firms Gitanjali Gems, Nakshatra Manufacturers and Gili.