ED seizes ₹5.1Kcr Nirav Modi assets
Bank says will honour all ‘bona fide commitments’ to other banks; won’t spare anyone involved in fraud, vows govt
Federal investigating agencies swung into action to probe a fraud of around ₹11,400 crore in Punjab National Bank (PNB) and seized gold, diamonds, and precious stones worth around ₹5,100 crore from 17 premises of Nirav Modi and Gitanjali Gems, but all individuals named in the case by the Central Bureau of Investigation (CBI) seem to have left the country.
Meanwhile, the state-run lender said it would honour all “bona fide commitments” to other banks, although it stopped short of accepting the entire liability of the ₹11,400-crore fraud, pointing out that the matter was under investigation. Still, this is likely to address some issues related to the contagion that had spooked banking circles.
The Enforcement Directorate (ED), which conducted the raids in Mumbai, Delhi and Surat, has written to the ministry of external affairs to revoke the passports of all named in the case, an officer at the agency said on condition of anonymity.
The CBI had already issued a so-called lookout notice for Modi, his wife, brother and his uncle Mehul Choksi of Gitanjali Gems on February 4, soon after the fraud came to light, albeit as a ₹283-crore one.
An officer at the CBI investigating the case said Modi left India on January 1, almost a month before PNB’s first complaint to the CBI on January 29. It filed a second complaint this week. His brother Nishal Modi, a Belgian citizen, also left on January 1, this person said. Modi’s wife Ami, a US citizen, left on January 4 and Choksi on January 6. “All left with their families,” the officer added.
Emails sent to Nirav Modi remained unanswered.
“We at Gitanjali Gems are not aware of any such raids or visits by the ED as of now,” said a spokesperson for the company. “Gitanjali Gems has not had any ‘unauthorised’ dealings with PNB or its officials. All allegations being directed at us seem premature considering that the matter is still under investigation.”