PNB Fraud: ED Arrests Firestar Group VP, Nirav Modi's Close Associate Shyam Sunder Wadhwa

| March 28 , 2018 , 17:42 IST

The Enforcement Directorate (ED) on Wednesday arrested a close associate of Nirav Modi and the Vice President Firestar group in connection with a money-laundering probe in the PNB fraud.

A confidant of Modi, Shyam Sunder Wadhwa was wanted in the multi-crore Punjab National Bank (PNB) fraud case. He was arrested in Mumbai making it the first arrest by the agency in the case.

According to reports, Wadhwa was accused of conducting fraudulent transactions with Firestar International and Firestar Diamond International owned by Modi, implicated in the Rs 13,500 crore scam.

As per reports, Wadhwa is expected to be produced before a local court in Mumbai on Wednesday.

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The central probe agency said Wadhwa will help it in 'unravelling' the truth behind the scam. It alleged that he was trying to 'mislead' the agency during interrogation but confessed doing the paperwork for creating two firms and appointing 'dummy' directors in them

The ED on March 24 seized valuables worth over Rs 36 crore belonging to Modi and also carried out joint searches with the Central Bureau of Investigation (CBI), which is also probing criminal misconduct in the case, for over three days at Nirav Modi’s palatial ‘Samudra Mahal’ residence in Mumbai.

The move is part of money trail probe by the ED and CBI after cases were registered against Nirav Modi and his business partner and Mehul Choksi, owner of Gitanjali Group, for defrauding PNB.

Nirav Modi and Choksi fled the country in January around a month before the PNB filed its first complaint against them with the CBI.