ED seeks non-bailable warrant against Nirav Modi and his family

The Enforcement Directorate on Friday sought a non-bailable warrant against absconding jeweller Nirav Modi and his family members in the money laundering case linked with the Rs13,000-crore Punjab National Bank (PNB) fraud.

The ED also sought the court to take cognisance of the complainant filed against the 24 accused.

The agency had listed Nirav and his family members, namely Neeshal Modi (brother), Nehal Modi (step-brother), Deepak Modi (father), Purvi Mehta (sister), Mayank Mehta (brother-in-law) accused along with his business associates Saju Poulose, Aditya Nanavati, Subhash Parab, Mihir Bhansali, Dharmesh Shah, Hemant Bhatt, Shyam Sunder Wadhwa and former PNB deputy manager,Gokulnath Shetty.

The ED contended that many of the accused were not questioned and sought a warrant against Modi’s siblings, step-brother, father, brother-in-law along with his business associates. The agency has already recorded statements of Bothra, Parab, Bhansali, Wadhwa, Bhatt and Shetty under the Prevention of Money Laundering Act (PMLA).

The Special PMLA court has reserved its order on the ED’s plea for next week.

As per the statement given by Bothra, his company, Jain diamonds was used by the Gitanjali and Firestar Group companies to inflate their turnover. He said his company was used for layering and rotating exports and imports of diamond jewellery belonging to Gitanjali Jewellers and Firestar Group. Essentially, the jewellery was sold and purchased between the two companies. Bothra said he was promised 0.15% of the transaction.

Wadhwa said he was posted in Hong Kong and claimed that Modi had floated around 30 companies in that country. The agency claimed that these were dummy companies created only to layer false import and export of diamond jewellery, and later launder money.

The ED further claimed that Modi held major stake and control in these companies.