PNB fraud case: ED conducts multi-city raids

The Enforcement Directorate (ED) on Sunday conducted raids at 45 locations across 15 cities in connection with the Punjab National Bank (PNB) fraud case involving businessman Nirav Modi.

In West Bengal, six locations of Gitanjali and Nakshatra jewellery outlets were being searched in Kolkata.

At the time of filing this report, the raids are on in the 15 cities.

The PNB has lodged two financial fraud complaints of Rs. 11400 crore and Rs 280 crore against Nirav Modi, his family members and Mehul Choksi, owner of Gitanjali Gems.

The CBI filed a formal case charging four- Nirav Modi, his wife Ami, brother Nishal and Mehul Choksi- on January 31 over Rs. 280 crore fraud.

The PNB scam has rattled nation as well as the government.

The ED on Saturday also conducted searches at 21 locations across India in connection with the PNB fraud case. The agency also seized diamonds, gold, precious stones and jewellery worth Rs 25 crore.

The ED also seized diamonds worth Rs 2.30 crore from a Nakshatra jewellers showroom of Gitanjali Group in Bhopal.

The agency conducted searches at several places linked to Nirav Modi in Mumbai, Delhi and Gujarat, and seized diamond, jewellery and gold worth Rs. 5,649 crore.

The ED has also seized properties worth Rs 5674 crore till now.

The agency has filed the case under the Prevention of Money Laundering Act (PMLA) on the basis of an FIR registered by the Central Bureau of Investigation (CBI).

The PNB detected scam in which jeweller Nirav Modi acquired fraudulent letters of undertaking from one of its branches for overseas credit from other Indian lenders.

The scam was started in 2011 and was detected in the third week of January this year, after which the PNB officials filed a complaint with the CBI on January 31.