Nirav Modi fraud: ED registers PMLA case

By

Isabelle Crossley

Published
Mar 26, 2018

The Enforcement Directorate (ED) has registered a Prevention of Money Laundering Act (PMLA) case against Nirav Modi, Mehul Choksi, and others implicated in the ongoing fraud at the Punjab National Bank (PNB).

After the Nirav Modi scandal broke in February, the Central Bureau of Investigation (CBI) has been investigating the matter and conducted a total of 251 searches across India. Gold, diamonds, pearls, and other semi-precious stones were seized as well as luxury cars and immovable properties belonging to both the Nirav Modi Group and Mehul Choksi Group.

The total value of what the CBI has seized has been estimated to amount to around 7,638 crore rupees (approximately 1.14 billion US dollars) but the fraud total has reached 12,300 crore rupees (almost 1.9 billion dollars). Following the ED’s PMLA case registration, the formal proceedings will follow.

As both Modi and Choksi have remained abroad since before the scandal made the news and refused to return for the investigation, they have so far taken no part in it. From March 22, the CBI conducted a three day search Modi’s residence in Mumbai and this resulted in antique jewellery worth 15 crore rupees (approximately 2.3 million dollars) being seized with one ring alone valued at 10 crore rupees (approximately 1.5 million dollars). Luxury watches and paintings were also seized including works by Amrita Sher-Gil and M.F. Husain.