Nirav Modi

offices of Gitanjali Group — one of the largest diamond companies in India and a listed jewellery retailer promoted by Modi’s maternal uncle Mehul Choksi — in connection with the ongoing investigation. Modi, who grew up in Antwerp in Belgium, worked closely with Choksi for about 10 years.

The tax department is probing over half-a-dozen firms of Modi, including Firestar Diamond International Pvt Ltd, Firestarinternationalandstellardiamond amongothers.modi’sfirmsaresuspected to have received money from shell companiesthroughrealtimegrosssettlement (RTGS), according to sources.

“The Income-tax department has beencarryingonsearchesofseveralfirms in the gems and jewellery industry, and our group is not an exception but just one more. We have fully cooperated with the department to provide documents and clarifications. The search has taken place and concluded. Firestar is a group which conducts its business in absolute compliance with the law,” said the official spokesperson of Firestar Diamond.

Arecententranttothebillionaireclub, Modi was named in the Forbes India’s Richestpeoplelist2016,withanetworth of $1.74 billion. Modi is known for his high-valuejewellerythatcostasmuchas Rs 50 crore and regularly feature at auctions conducted by houses like Christie’s and Sotheby’s. In 2010, Modi’s Golconda necklace sold for Rs 16.29 crore at a Christie’s auction.

The tax authority has claimed that its probe has uncovered several discrepancies in Modi’s six SEZ units in Surat. Sources said it has found evidence of bogus purchases and cash sales that were not recorded in the books of the firms.

When contacted, Choksi, chairman andmanagingdirectorofgitanjaligroup, said he was not aware of any tax probe against Modi.

“Firstly, I wish to point out that there was no search conducted by the Income Tax department on Gitanjali Group. However, the department did conduct a survey on few of our premises and the matter was concluded immediately. Secondly, I am unaware of any tax probe pertaining to Mr Modi,” said Choksi in an email.