MODI, CHOKSI FACE SEIZURE BY ED, I-T

The Income Tax department has issued notices against 26 people who allegedly purchased diamond jewellery worth ~2.52 billion in cash from Nirav Modi’s group. According to the sources, these individuals made cash transactions with the jewellery firm between ~10 million and ~50 million in 201617.

Sources said the department has sought explanation on “nature and source” of transactions with Modi group firms purchase of jewellery. And, demanded furnish detail of mode of payment made to the firm.

“Non-satisfactory answers would entail penalty and prosecution,” said an I-T official.

The department also made provisional attachment of special economic zone unit of Gitanjali group at Hyderabad worth ~12 billion.

The department alleged SEZ was misused by the firm and had also rented out to other companies.

It said Modi used foreign accounts to siphon the money. The I-T department is examining Modi’s foreign bank accounts find out the total amount sent abroad.

The move comes after tax sleuths identified 80 people who made jewellery purchase in cash. They found the receipts during search at Modi firms. Sources said an amount of ~940 million was mapped with the permanent account number of these individuals.

Meanwhile, the Enforcement Directorate (ED) on Thursday froze shares, mutual funds, and seized luxury cars of Nirav Modi and Mehul Choksi worth ~1 billion in connection with the case.

An ED official said the agency had raided four premises of Gitanjali Gems in Mumbai. Mutual fund investments worth ~80 million of Nirav Modi and ~860 million of Mehul Choksi wrere seized.

As of end-December 2017, Gitanjali Gems Chairman Choksi held a 22.81 per cent stake in the firm, and another 4.95 per cent through holding companies.