PNB Scam : ED attaches Nirav Modi’s assets worth Rs. 523 crore

In connection with PNB scam, the Enforcement Directorate (ED) on Saturday attached 21 immovable assets of Nirav Modi and his companies estimated to be Rs. 523.72 crore under the Prevention of Money Laundering Act(PMLA).

The properties include six residential and ten office properties in Mumbai, two flats in Pune, a farmhouse in Alibaug, a solar power plant and a 135-acre land in Karjat.

The shares and mutual funds worth Rs. 94 core held by Modi and Mehul Choksi groups were frozen yesterday.

Apart from immovable, ED also seized nine cars belonging to Modi and his firms which include Rolls Royce Ghost, two Mercedes Benz models GL 350 CDL, one Porsche Panamera, 3 honda cars, one Toyota Fortuner and one Toyota Innova.

According to ED, over 120 shell companies are linked to the duo and their family members.

While Modi and Chokshi have fled the country, the first high profile arrest in the case was that of Vipul Ambani, a relative of Mukesh Ambani who serve as Presideent to Modi’s Firestar International Firm.

The Fraud
State-run Punjab National Bank on Feb 14 detected fraudulent transactions Rs. 11,300 crore in its Mumbai branch.

The fraud involved illegal issuance of Letters of Undertakings(LoU) to firms Diamond R US, solar Exports and Stellar Diamonds, all partnership firms owned by Modi, Chokshi and their family.

According to the PNB, these firms, on Jan 6, approached the bank with a set of import documents and requested Buyer’s Credit to make payments to overseas suppliers.

Buyers Credit is a short term facility extended to an importer to guarantee finance to his supplies from abroad. The bank said there was no sanctioned limit for the firms hence will need 100% cash margin for the document.

At this point the firm personnel said, they have been availing the facility in the past. The bank said such history was missing in the records and dug deeper.

The bank then found how two of its employees  issued LoUs to these firms in the past forgoing procedures or approvals and made no entries of it in the banking system to avoid detection.

 

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