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PNB Fraud: CBI Files 1st Charge Sheet Against Nirav Modi

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| May 25 , 2018 , 12:38 IST

The Enforcement Directorate on Thursday filed its first charge sheet in the $2 billion PNB fraud case involving diamantaire Nirav Modi and his associates, officials said.

Under various sections of the Prevention of Money Laundering Act (PMLA), an around 12,000-page charge sheet has been filed against Nirav Modi, Nirav Modi’s father Deepak Modi, brother Neeshal, sister Purvi and her husband Mayank Mehta, and Nehal Modi.

ALSO READ: PNB Scam: ED Issues Summons To Nirav Modi's Father, Sister

The renegade businessman’s three companies — Solar Exports, Stellar Diamonds and Diamonds R US have now been named as Firestar group of companies as they also got Letters of Undertaking (LoUs) of Rs 6,498 crores fraudulently issued through the PNB’s Brady House branch in Mumbai.

An ED Official said "The funds so obtained by the said three entities were partly used for payments to various overseas companies and also for offsetting earlier LoUs. Payments were made to 17 overseas entities in Hong Kong, Dubai and the United States since 2011 in the guise of export or import.”

Punjab National Bank (PNB) detected a $1.8 billion fraud in one of its branches in Mumbai.

"The bank has detected some fraudulent and unauthorised transactions (messages) in one of its branches in Mumbai for the benefit of a few select account holders with their apparent connivance," PNB said.

Due to which the Enforcement Directorate conducted multiple searches against billionaire jewellery designer Nirav Modi for his connection with Rs 280-crore money laundering case and the PNB fraud.

A complaint was filed by Avneesh Nepalia, the Deputy General Manager at Punjab National Bank on January 31 that the partnership firms mentioned in the complaint had gained an amount of Rs 280.70 crore rupees while the bank suffered a wrongful loss of the same magnitude.

The accused is charged under Section 120-B (criminal conspiracy) and Section 420 (cheating) of the Indian Penal Code as well as Section 13(2) (criminal misconduct by public servant) and Section 13(1)(d) of Prevention of Corruption Act, 1988.