PNB Fraud Case: ED Raids Billionaire Jewellery Designer Nirav Modi’s Premises

MUMBAI:
The Enforcement Directorate today conducted multiple searches in connection with a Rs 280 crore money laundering case against billionaire jewellery designer Nirav Modi and others following a complaint by Punjab National Bank.
Official sources said the agency sleuths swooped down on at least ten premises of entities involved in the case early morning. The premises raided by the ED here 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.
It is understood that the ED also went through the PNB complaint that was made out against Modi and others. The agency, they said, would probe if the allegedly defrauded bank funds were laundered and these proceeds of crime were subsequently used by the accused to create illegal assets and black money.
The CBI had booked Modi, his brother, wife and a business partner for allegedly cheating PNB of over Rs 280.70 crore in 2017. The CBI had also raided the residence of Modi, his brother Nishal, wife Ami and Mehul Chinubhai Choksi, all partners of Diamond R US, Solar Exports and Stellar Diamonds and two bank officials — Gokulnath Shetty (now retired) and Manoj Kharat, who were also named in the FIR as accused.
Modi (46), who had figured in the Forbes’ list of richest Indians, was booked by the CBI for cheating after PNB sent a complaint to it alleging that the jewellery firm owner, his brother, wife and Choksi entered into a criminal conspiracy with the officials of the bank and cheated it, causing a “wrongful loss”.
State-run Punjab National Bank (PNB) said on Wednesday it had detected some “fraudulent and unauthorised” transactions worth about $1.77 billion (about Rs 11, 300 crore) at one of its branches in Mumbai.
In a communique to the Bombay Stock Exchange, the bank said the transactions were “for the benefit of a few select account holders with their apparent connivance” and that “based on these transactions other banks appear to have advanced money to these customers abroad.”
PNB, the country’s second-biggest state-run lender and fourth-biggest overall by assets, did not name the people involved but said it had reported the deals to law enforcement agencies and would evaluate later whether it faces any liability arising out of the transactions.
“In the bank these transactions are contingent in nature and liability arising out of these on the bank shall be decided based on the law and genuineness of underlying transactions,” PNB said, without giving further details.
PNB shares were trading 4.1% lower by 10 am, having fallen as much as 5.7% in early trading on Wednesday. PNB is already dealing with other allegations of fraudulent transactions.