PNB fraud: ED searches Nirav Modi's properties
DH News Service, New Delhi, Feb 15 2018, 13:57 IST
Nirav Modi
The Enforcement Directorate (ED) on Thursday conducted searches in multiple premises linked to billionaire diamond merchant Nirav Modi and his associates in connection with a Rs 280 crore money laundering case arising out of a complaint by Punjab National Bank (PNB).
The agency had registered a case on the basis of a CBI FIR dated January 31, on Wednesday against Modi and others.
The ED move came on a day PNB informed the Bombay Stock Exchange that it has detected fraudulent transactions to the tune of Rs 11,344.40 crore.
ED sources said they conducted searches at at least 10 premises linked to the case. These include Modi's residence in Kurla, his jewellery boutique in Kala Ghoda area, three company locations in Bandra and Lower Parel, three premises in Surat in Gujarat and Modi's showrooms in Chanakyapuri and Defence Colony in Delhi.
Sources said the ED is also examining the two fresh complaints filed by the PNB with CBI on Tuesday night.
The CBI had booked Modi, his wife Ami, brother Nishal and business partner Chinubhai Choksi, all partners of Diamon R US, Solar Exports and Stellar Diamonds and PNB employees Gokulnath Shetty and M H Kharat.
The CBI FIR on January 31 claimed that Modi and others cheated the PNB of Rs 280 crore.
According to the CBI FIR, it came to light on light on January 16 that fraudulent issuance of Letters of Undertakings (LOU) had taken place when the three companies approached the bank and requested it to allow buyers' credit for making payment to overseas suppliers by presenting a set of import documents.
However, as there was no sanctioned limit for these firms, the bank sought the companies to furnish 100% cash margin for LOU for raising buyers' credit.
The firms claimed that they had availed this facility in the past but the bank records did not show any such facility given to them.
PNB officials Shetty, who is now retired, and Kharat fraudulently issued these LOUs without following procedure and without making any entries in the bank's systems to ensure that it is not detected.
The agency had registered a case on the basis of a CBI FIR dated January 31, on Wednesday against Modi and others.
The ED move came on a day PNB informed the Bombay Stock Exchange that it has detected fraudulent transactions to the tune of Rs 11,344.40 crore.
ED sources said they conducted searches at at least 10 premises linked to the case. These include Modi's residence in Kurla, his jewellery boutique in Kala Ghoda area, three company locations in Bandra and Lower Parel, three premises in Surat in Gujarat and Modi's showrooms in Chanakyapuri and Defence Colony in Delhi.
Sources said the ED is also examining the two fresh complaints filed by the PNB with CBI on Tuesday night.
The CBI had booked Modi, his wife Ami, brother Nishal and business partner Chinubhai Choksi, all partners of Diamon R US, Solar Exports and Stellar Diamonds and PNB employees Gokulnath Shetty and M H Kharat.
The CBI FIR on January 31 claimed that Modi and others cheated the PNB of Rs 280 crore.
According to the CBI FIR, it came to light on light on January 16 that fraudulent issuance of Letters of Undertakings (LOU) had taken place when the three companies approached the bank and requested it to allow buyers' credit for making payment to overseas suppliers by presenting a set of import documents.
However, as there was no sanctioned limit for these firms, the bank sought the companies to furnish 100% cash margin for LOU for raising buyers' credit.
The firms claimed that they had availed this facility in the past but the bank records did not show any such facility given to them.
PNB officials Shetty, who is now retired, and Kharat fraudulently issued these LOUs without following procedure and without making any entries in the bank's systems to ensure that it is not detected.