PNB fraud: ED searches Nirav Modi’s properties

Mangalore Today News Network

New Delhi, Feb 15, 2018 : 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 from a complaint by Punjab National Bank (PNB).

 

The agency had registered a case on Wednesday against Modi and others on the basis of a CBI FIR dated Jan. 31.

The ED move came on a day that 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 of 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 two fresh complaints filed by PNB with the 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 Jan. 31 claimed that Modi and others cheated PNB out of Rs 280 crore.

According to the CBI FIR, it came to light on Jan. 16 that fraudulent issuance of Letters of Undertakings (LOUs) 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.

As there was no sanctioned limit for these firms, however, the bank asked the companies to furnish 100% cash margin for the LOUs for raising buyers’ credit.

The firms claimed that they had availed this facility in the past but the bank records showed that they had not received any such facility.

PNB officials Shetty, who is now retired, and Kharat fraudulently issued these LOUs without following procedure and without making entries in the bank’s systems to ensure that it is not detected, according to the FIR.



courtesy:DHNS