Nirav Modi has over two dozen companies abroad
Six firms in U.S. tax haven alone; suspected of routing funds from LoUs
The Enforcement Directorate has identified over two dozen companies allegedly set up by diamond trader Nirav Modi and his business associates in various countries.
It is learnt that these companies were incorporated in several countries including the United States, United Kingdom, United Arab Emirates, China, Hong Kong, Russia, South Africa, France, Singapore, Belgium and Armenia. The ED will soon send letters rogatory to authorities in 15 foreign jurisdictions requesting relevant details. The agency suspects that the funds raised through the Punjab National Bank — using fraudulently issued Letters of Undertaking and Foreign Letters of Credit — were also routed through such entities overseas.
In the U.S., the accused had set up about six companies in “tax haven” Delaware, where the incorporated entities enjoy a range of tax exemptions besides privacy.
Mr. Modi had opened stores in Delhi, Mumbai, Hong Kong, Beijing, Singapore, London, New York, Las Vegas and Honolulu. He also planned to expand the business to other countries.
120 shell companies
The ED is pursuing the money trail in the ₹12,636-crore alleged fraudulent transactions. As part of the investigations, it has also zeroed in on more than 120 shell companies in India through which funds were being routed for the past several years, it is alleged.
According to the Directorate, 79 shell companies are linked to Mr. Choksi, while the others were allegedly controlled by Mr. Modi, his brother Nishal and his contacts. The agency has written to over 31 banks seeking details of the loans advanced to Mr. Choksi’s Gitanjali group. The banks have also been told to furnish information on the loans given to Mr. Modi’s companies. Around 12 banks have so far shared data on outstanding amounts.
The ED has so far attached 41 immovable assets worth ₹1,217.20 crore of Mr. Choksi and his companies. In the case against Mr. Modi and others, 21 immovable properties valued at ₹523.72 crore have been attached. The agency also seized gold, diamond and other precious metals etc. valued at over ₹5,100 crore.
The Enforcement Directorate has identified over two dozen companies allegedly set up by diamond trader Nirav Modi and his business associates in various countries.
It is learnt that these companies were incorporated in several countries including the United States, United Kingdom, United Arab Emirates, China, Hong Kong, Russia, South Africa, France, Singapore, Belgium and Armenia. The ED will soon send letters rogatory to authorities in 15 foreign jurisdictions requesting relevant details. The agency suspects that the funds raised through the Punjab National Bank — using fraudulently issued Letters of Undertaking and Foreign Letters of Credit — were also routed through such entities overseas.
In the U.S., the accused had set up about six companies in “tax haven” Delaware, where the incorporated entities enjoy a range of tax exemptions besides privacy.
Mr. Modi had opened stores in Delhi, Mumbai, Hong Kong, Beijing, Singapore, London, New York, Las Vegas and Honolulu. He also planned to expand the business to other countries.
120 shell companies
The ED is pursuing the money trail in the ₹12,636-crore alleged fraudulent transactions. As part of the investigations, it has also zeroed in on more than 120 shell companies in India through which funds were being routed for the past several years, it is alleged.
According to the Directorate, 79 shell companies are linked to Mr. Choksi, while the others were allegedly controlled by Mr. Modi, his brother Nishal and his contacts. The agency has written to over 31 banks seeking details of the loans advanced to Mr. Choksi’s Gitanjali group. The banks have also been told to furnish information on the loans given to Mr. Modi’s companies. Around 12 banks have so far shared data on outstanding amounts.
The ED has so far attached 41 immovable assets worth ₹1,217.20 crore of Mr. Choksi and his companies. In the case against Mr. Modi and others, 21 immovable properties valued at ₹523.72 crore have been attached. The agency also seized gold, diamond and other precious metals etc. valued at over ₹5,100 crore.