Rs 114-bn fraud: ED takes action against Nirav Modi's overseas operations

The ED has sent out letters of request, called 'letters rogatory', with a clutch of evidence to the concerned enforcement agencies asking for sealing of outlets

In an attempt to clamp down on troubled diamantaire Nirav Modi’s overseas operations, the enforcement directorate (ED) has reached out to investigating agencies of the concerned jurisdictions seeking action against his outlets around the world.

Modi has stores and boutiques in Macau, New York, Las Vegas, Honolulu, Singapore, Hong Kong and Beijing.

The ED has sent out letters of request, called ‘letters rogatory’ (LR), with a clutch of evidence to the concerned enforcement agencies asking for sealing of outlets.

“We have made a move to stop sales at Nirav Modi’s outlets in key international locations. Requests have been made to the concerned overseas authorities,” said a government official.

LRs are issued under the Prevention of Money Laundering Act to investigating or enforcement agencies of other countries to take action against any concerned person.

Just about a week ago, Modi had opened a store in Macau. Some three months ago, he opened boutiques in New York, Las Vegas, Honolulu, Singapore and Beijing in addition to his four stores in Hong Kong.

“We are trying to attach more assets of Nirav Modi,” the official said.

The ED, the investigating agency under the Department of Revenue, tweeted on Friday that it has seized diamonds, gold, and jewellery worth Rs 56.49 billion in its raid across 52 premises. On Thursday, it raided 17 locations and 35 on Friday. “ED had seized jewellery, gold, diamond, precious metal and stones at stock price of Rs 5,100 crore (Rs 51 billion) in the Nirav Modi case yesterday (Thursday). 

Independent valuation has been started… ED conducted further searches at 35 locations across India in Nirav Modi case and seized diamonds, gold and jewellery worth Rs 549 crore (Rs 5.49 billion) in book value,” it said.