ED to seek info from nations on Nirav, Choksi's assets

Widening its probe into the PNB fraud case, the Enforcement Directorate will soon send judicial requests to over a dozen countries for obtaining information about the overseas businesses and assets of diamantaire Nirav Modi and owner of Gitanjali Gems Mehul Choksi.

Meanwhie, the CBI on Sunday  examined Punjab National Bank’s Executive Director K V Brahmaji Rao for the second day in connection with the Rs 11,400 crore PNB scam  involving s Nirav Modi and his uncle Mehul Choksi.   The CBI officials said that the examination was focussed on understanding how the crime was detected by the bank and other procedural issues and their violations. The CBI also wanted to know why the fraud was remained undetected till recently.

On the other hand, chartered accountants’ body ICAI said it has taken a statement from a senior official of the bank and emphasised it would not be prudent to draw any conclusion against the profession till disciplinary proceedings are completed. Besides, issuing show cause notices to the auditors of Punjab National Bank and Gitanjali Gems, which is involved in the scam, the institute has constituted a high-powered group to study the issues in the case as well as suggest remedial measures for the banking system.

Official sources said the ED will approach a competent court in Mumbai  with a request to obtain Letters Rogatories (LRs) to be sent to about 15-17 countries where the central investigation agency has traced the footsteps of the diamond and gold jewellery businesses of the firms owned by Modi, his uncle Choksi and others associated with them.The countries where the LRs would be sent include Belgium, Hong Kong, Switzerland, the United States, the United Kingdom, Dubai, Singapore and South Africa.

Some official requests on the basis of agency-to-agency exchange will also be sent to few countries, the sources said. The attempt of sending these judicial requests for exchange of information is aimed at obtaining the details of the overseas financial holdings of Modi and Choksi, who are accused in the Rs 11,400 crore PNB loan fraud case, their bank accounts, assets, partnerships, showrooms, trusts and other assets, they said.

These assets and their sources of income will be investigated and if necessary would be attached under the criminal sections of the Prevention of Money Laundering Act (PMLA) if it is found that they have been created using tainted funds or the proceeds of crime of the alleged bank fraud, the sources said.

The total assets seized by the ED in this case are now over Rs 6,393 crore, officials had said, adding that this was being independently valued.