ED registers money laundering case

The Enforcement Directorate (ED) has registered a money laundering case in connection with the ~2.8 billion cheating of Punjab National Bank (PNB) allegedly by diamantaire Nirav Modi and others, on the basis of a CBI FIR.

Official sources said the agency had filed the case under the Prevention of Money Laundering Act (PMLA) after going through the CBI FIR filed early this month.

It is understood the ED also went through the PNB complaint that was made out against Modi and others.

The agency, they said, would probe if the allegedly defrauded bank funds were laundered and these proceeds of crime were subsequently used by the accused to create illegal assets and black money.

The CBI had booked diamond merchant Nirav Modi, his brother, wife and a business partner for allegedly cheating PNB of over ~2.8 billion in 2017. It had also raided the residence of Modi, his brother Nishal, wife Ami and Mehul Chinubhai Choksi, all partners of Diamond R US, Solar Exports and Stellar Diamonds and two bank officials — Gokulnath Shetty (now retired) and Manoj Kharat, who were also named in the FIR as accused.

Modi (46) has been booked by the CBI for cheating after PNB sent a complaint to it alleging that the jewellery firm owner, his brother, wife and Choksi entered into a criminal conspiracy with the officials of the bank and cheated it, causing a "wrongful loss".