CBI arrests three more PNB officers in ₹11.4k cr-fraud

Nirav Modi illegally diverted SEZ diamonds worth ₹1,216 crore to domestic market: I-T Department

The CBI on Monday held three more officers of Punjab National Bank’s Brady House branch in Mumbai in connection with the Rs 11,400 crore fraud allegedly involving diamond czar Nirav Modi. The total number of arrests in the case stands at six. Searches at PNB Brady house branch have concluded late Monday evening.

The arrested officers are identified as Bechhu Tiwari (Chief Manager, in charge of Forex dept), Yashwant Joshi (Scale II, Manager, Forex dept) and Praful Sawant (Scale I, Officer, Export).

In a statement, the CBI said that searches have begun at the residences of the arrested officials located at Navi Mumbai, Andheri, Dombivili. It also said searches are going on at the office of Nirav Modi group offices at Peninsula Business Park, Lower Parel.

Divulging details of the arrested officers, the CBI said, “Bechhu Tiwari is responsible for supervising the work of Gokulnath Shetty and his manager to ensure entry of authorised swift messages only from the system; He had full knowledge of the activities of Gokulnath Shetty.”

“Yashwant Joshi is responsible for supervising Gokulnath Shetty and ensure daily reports of swift and CBS entries. He had full knowledge of the activities of Gokulnath Shetty but took no action. Praful Sawant is responsible for checking the SWIFT messages daily and report,” it added.

Meanwhile, the Enforcement Directorate (ED) raids entered its fifth day on Monday, with the team holding searches at the Mumbai residence of diamond merchant Nirav Modi.

Sources in the agency said ED sleuths raided Modi’s Samudra Mahal bungalow in Worli in south Mumbai, besides conducting searches at 34 other locations in various cities, including Mumbai, Pune, Aurangabad, Thane, Kolkata, Delhi, Lucknow, Bengaluru and Surat. Diamonds, gold jewellery and other precious stones worth Rs 5,694 crore have been seized till now.

ED director Karnal Singh flew to Mumbai on Monday to review the investigations which are being conducted by a special team of the agency. Sources said officials are trying to collect all financial documents — personal and official — of Modi, his uncle Mehul Choksi.

The Income Tax Department, on the other hand, attached seven properties of the Gitanjali Group and Choksi in Mumbai. The department issued an order for provisional attachment of flats and buildings of these entities, which are located in the Opera House, Bandra, Andheri, Wadala and Walkeshwar Road areas of the Maharashtra capital, under the provisions of the Income Tax Act, 1961.

The Income Tax department has also found that in the last financial year the Nirav Modi group had illegally diverted Rs 1,216 crore of diamonds meant for export from its special economic zone to the domestic market, selling them in cash.

The CBI questioned Vipul Ambani, the Chief Financial Officer of diamantaire Nirav Modi’s Fire Star diamond company, officials said in New Delhi on Monday.

They said Vipul Ambani was holding the position for last three to four years. He is understood to be a relative of late Dhirubhai Ambani.

Central Vigilance Commissioner K V Chowdary on Monday met senior PNB and Finance Ministry officials in connection with the Rs 11,400 crore fraud case.

Gitanjali Gems on Monday said two of its senior management officials including CFO Chandrakant Karkare, and a board member had quit.