Mumbai: Nirav Modi’s showroom and home in Mumbai were searched by the Enforcement Directorate this morning, amid allegations of a massive bank fraud to facilitate the celebrity jeweler and others. The agency is searching multiple locations in Mumbai and Delhi.
Yesterday, the Punjab National bank, India’s second largest government bank, reported that $1.8 billion or over Rs. 11,000 crore of taxpayers’ money had been illegally transferred abroad to select customers from a single branch in Mumbai.
Later, sources in the CBI were quoted by the Press Trust of India as saying that the agency had received two complaints against Nirav Modi, alleging fraud worth Rs. 10,000 crore.
Nirav Modi, 48, is already being investigated by the CBI in connection with fraud worth Rs.280 crore. The diamond merchant was raided by Income Tax officials on January 31; his offices in Delhi, Surat and Jaipur were searched.
CBI sources say Nirav Modi, his wife, brother and others worked with bank officials to illegally obtain Letters of Undertaking, which were cashed overseas from different banks, both private and public sector.
The CBI was told that eight Letters of Understanding were issued to the billionaire jeweler, without being entered in the books, to help him get loans from Hong Kong-based banks.