The fugitive diamond jeweller Nirav Modi who is the prime accused in the multi-crore PNB scam diverted nearly Rs 4,2999 of Rs 6,939.84 crore outstanding fraudulent Letters of Undertaking (LoU) issued by bank to himself, his firms and his relatives. The money was redirected through 15 dummy companies based in the UAE and Hong Kong, The Indian Express reported citing the first prosecution complaint (chargesheet) filed by the Enforcement Directorate (ED) on Thursday. The 14,000-page complaint said that UAE-based nine dummy companies were used by Nirav Modi for diverting Rs 1,811 crore to his group firms, his sister Purvi Modi and her husband Maiank Mehta.
The chargesheet also said that Modi also used six Hong Kong-based firms which are indirectly controlled by him to divert another Rs 2,138 crore of the LoU funds to his various group companies. Rs 137 crore of the LoU funds were brought back to Nirav Modi’s personal bank accounts in India, according to the complaint.
“Of the $ 265 million (Rs 1,811 cr), the agency has found that about $ 115 million (Rs 786 crore) was diverted to Purvi Modi and Maiank Mehta, another $ 50 million (Rs 341 crore) was given to an offshore firm, Lili Mountain Investment, allegedly controlled by Purvi Modi, $ 65 million (Rs 439 crore) was ploughed into Modi’s flagship firm in India, Firestar International Pvt Ltd, by a couple of offshore firms against share subscription, and another $ 35 million (Rs 239 crore) was diverted to Modi himself,” The Indian Express report said citing ED complaint.
The ED filed the prosecution report in Mumbai court on Thursday. The complaint has also included names of Modi’s father (Deepak Modi), his brothers (Neeshal Modi and Nehal Modi) in the money laundering investigation, the report said.
The agency has incriminating evidence against one of the brothers, who allegedly tried to alienate some of the assets of Modi’s firm in Dubai as recently as March 2018, The Indian Express reported citing unidentified sources.