ED gets nod to probe Nirav Modi’s foreign assets

MUMBAI: A special court on Monday allowed an Enforcement Directorate (ED) plea seeking issuance of Letters Rogatory (LRS) to six countries for obtaining information about the overseas businesses and assets of diamantaire Nirav Modi in the over Rs 11,000-crore PNB fraud case.

The central agency approached a special court set up under the Prevention of Money Laundering Act (PMLA) on Monday morning with the plea seeking issuance of LRS in the case.

Judge M S Azmi allowed the ED application after hearing the arguments of special public prosecutor Hiten Venegaonkar.

“The application is allowed,” the Judge said.

The ED, in its plea before the court, sought “issuance of LR under the PMLA for recovery/seizure of proceeds of crime and collection of documents, evidence lying in Hong Kong, the USA, the UK, the UAE, South Africa and Singapore which are required in connection with the investigation.”

Letters Rogatory are a formal request from a court of a sovereign nation to a court of another sovereign nation for judicial assistance in a case.

The ED told the court that Nirav Modi established various firms, including Diamond R US, Solar Exports, Stellar Diamond, Firestar Diamond. He became an integrated diamond manufacturer who bought rough diamonds, sold polished ones and other stones and also designed jewellery.

His business consisted of trading in rough and polished diamonds, private label jewellery manufacturing and sale in the name and style of ‘Nirav Modi’ and ‘Firestars’ as well as the production of unlabelled jewellery for third parties, the ED said.

In a related development, CBI has sought data from CVOS of 5 banks where transactions took place on basis of letters of undertaking to Nirav Modi, Mehul Choksi.