You are here: Home » News-IANS » Business-Economy
Business Standard

PNB scam: ED raids diamond trader Nirav Modi

IANS  |  Mumbai 

A day after a massive $1.8 billion fraud was unearthed in a PNB branch here, the (ED) on Thursday launched a nationwide raid on the offices, showrooms and workshops of

ED teams swooped down and carried out simultaneous raids on Modi's offices, showrooms and diamond workshops in Mumbai, (Gujarat) and

According to sources, unspecified quantity of stocks of gold, diamond and other precious stones worth several hundred crores of rupees have been seized during the raids, besides incriminating documents, computer discs and other materials.

ED officials landed at head office in Bharat Diamond Bourse, in Bandra Kurla Complex, Modi's private office at in Kurla West, his showroom and boutique at Itts House in Fort, south and a workshop in the Peninsula Business Park in Lower Parel.

In Gujarat, six diamond workshops were raided in SEZ at Sachin town and an office in on Ring Road, the hub of diamond jewellery trade.

Two diamond jewellery boutiques of Modi in - in Chanakyapuri and Defence Colony - were also raided.

The multi-pronged action came a day after the admitted to unearthing a fraud of Rs 11,515 crore involving Modi's companies and certain other accounts with the bank's flagship branch (Brady House Branch) in and its second largest lending window in

At least 10 employees have been suspended but it is not clear whether anybody from the crucial PNB Credit Approval Committee or its Board of Directors figure among them.

The fraud, which includes money-laundering among others, concerns the Firestar Diamonds group in which the CBI last week booked Modi, his wife Ami, brother and their maternal uncle

It followed a complaint lodged by PNB on January 29 pertaining to an alleged cheating case of Rs 280 crore perpetrated by these four in 2011, but all the accused had already flown out of on various dates to different locations worldwide.

Modi, along with other co-accused in the fraud, is absconding from the country and the (CBI) had already issued a Look Out Circular against them on Janaury 31.

It is learnt that Modi - whose operations are spread across Europe, the US, and besides - has written to PNB and other banks that he would return their outstandings.

The latest case -- which involves a sum considerably higher than the Vijay Mallya loan default of around Rs 9,000 crore to Indian banks -- comes at a time when the Indian banking system is already grappling with swelling non-performing assets.



(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

First Published: Thu, February 15 2018. 20:28 IST