ED takes action against overseas biz

In an attempt to clamp down on troubled diamantaire Nirav Modi’s overseas operations, the enforcement directorate (ED) has reached out to investigating agencies of the jurisdictions concerned seeking action against his outlets around the world. Modi has stores and boutiques in Macau, New York, Las Vegas, Honolulu, Singapore, Hong Kong and Beijing.

The ED has sent out letters of request, called letters rogatory (LR), with a clutch of evidence to the enforcement agencies concerned asking for sealing of outlets. “We have made a move to stop sales at Nirav Modi’s outlets in key international locations. Requests have been made to the overseas authorities,” said a government official.

LRs are issued under the Prevention of Money Laundering Act to investigating or enforcement agencies of other countries to take action against any person concerned. Just about a week ago, Modi had opened a store in Macau. Some three months ago, he opened boutiques in New York, Las Vegas, Honolulu, Singapore and Beijing, in addition to his four stores in Hong Kong.

“We are trying to attach more assets of Nirav Modi,” the official said.

The ED tweeted on Friday that it has seized diamonds, gold, and jewellery worth ~56.49 billion in raids across 52 premises. On Thursday, it raided 17 locations and on Friday 35. “The ED had seized jewellery, gold, diamond, precious metal and stones at stock price of ~5,100 crore (~51 billion) in the Nirav Modi case yesterday (Thursday). Independent valuation has been started… ED conducted further searches at 35 locations across India in Nirav Modi case and seized diamonds, gold and jewellery worth ~549 crore (~5.49 billion) in book value,” it said.