ED Registers Money Laundering Case Against Businessman Nirav Modi After PNB Complaint To CBI

| February 15 , 2018 , 10:02 IST

On the basis of a CBI FIR, the Enforcement Directorate (ED) on Thursday registered a money laundering case against diamond businessman Nirav Modi in connection with a Rs 280 crore cheating case with Punjab National Bank (PNB).

The case against Modi was filed under the Prevention of Money Laundering Act (PMLA) after the CBI FIR filed earlier.

According to reports, the ED went through the Punjab National Bank complaint against Modi and others, and would probe whether the allegedly defrauded bank funds were laundered. The agency would also check with the proceeds were used by the accused to create illegal assets and black money.

Around 10 days back, the CBI had booked diamond merchant Nirav Modi along with his brother Nishal, wife Ami and business partner Mehul Chinubhai Choksi for allegedly cheating PNB of more than Rs 280.70 crore in 2017. The CBI also conducted raids on the residences of all three, who are all partners of Diamond R US, Solar Exports and Stellar Diamonds. In the CBI FIR, two bank officials were also named.

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"The public servants committed an abuse of official position to cause pecuniary advantage to Diamond R US, Solar Exports, Stellar Diamonds and a wrongful loss of Rs 280.70 crore to Punjab National Bank during 2017," the CBI FIR alleged.

The Punjab National Bank had sent the CBI a complaint alleging that the jewellery firm owner Nirav Modi, his brother, wife and business partner had entered into a criminal conspiracy with bank officials, cheating PNB and causing it a "wrongful loss".

Meanwhile, Punjab National Bank on Wednesday informed the Boston Stock Exchange of a fraud of more than $ 1.77 billion taking place in one of its Mumbai branches, an amount of nearly 7 times its annual profit of 2017. Following the letter to the stock exchange, the PNB stocks crashed by 7.5 percent.