Nirav Modi fraud investigation: now cash buyers will be investigated

As part of the ongoing investigation into the jewellery tycoon Nirav Modi’s alleged fraud at the Punjab National Bank (PNB), customers who bought expensive jewellery from the brand in cash are now under investigation.

Customers who bought jewellery from Nirav Modi stores are under investigation - Nirav Modi- Facebook

India’s Central Board of Direct Taxes (CBDT) has decided to launch a country-wide investigation into customers who made substantial cash purchases at Modi’s jewellery stores. The investigation will look at purchases dating back to 2015 (over the past two financial years) and cover purchases made in cash by individuals.

The investigation will lump purchases into three categories: purchases of five crore rupees and above (approximately 0.8 million dollars), between one and five crore rupees, and under one crore rupees. A 90 page confidential document prepared by the Income Tax Investigation in Mumbai will form the basis of the investigation. The document sets out details of items purchased and the customers who purchased them, as well as mode of payment. 40 pages pertain to purchases made from 2015 to 2016 and 50 page pertain to the years 2016 and 2017.

Tax investigation bureaus across India have been sent information about customers in their respective areas and will now review the investigation, the Economic Times reported the CBDT as stating. The investigation into Modi has now spread beyond that of his businesses and now involves his previous customers, in this way the alleged fraud’s ripples are being felt all over India.  

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