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The Enforcement Directorate (ED) is conducting searches at the residences of Nirav Modi and 11 other locations in Mumbai and Delhi in connection with the Rs 2.8 billion fraud of Punjab National Bank (PNB) allegedly by Modi and others.
ED on Wednesday registered an enforcement case investigation report under the Prevention of Money Laundering Act (PMLA) on the basis of first information report (FIR) filed by Central Bureau of Investigation (CBI) in January.
Confirming the development, an ED official said that search operation is underway and would continue for two days.
Sources said the enforcement agency is looking at whether the alleged fraud amount was laundered and these proceeds of crime were subsequently used by the accused to create illegal assets overseas.
The CBI had booked Modi, his brother, wife, and a business partner for alleged fraud in January and searched Modi and all respective parties named in the FIR.
On Monday again the bank filed two fresh complaints with the CBI. In one, the bank alleged involvement of a jewelry company. CBI sources said they were still undecided if they would file a fresh FIR on the latest complaints or merge them with their previous FIR.