CBI alleges Nirav Modi covered up crimes with dummy partners
The Central Bureau of Investigation has revealed that jewellery tycoon and alleged fraudster, Nirav Modi, deliberately changed the partnership structure of three of his businesses to hide his illegal business practices.
Modi allegedly installed “dummy partners” in three of his businesses -- Diamonds R US, Solar Exports, and Stellar Diamonds -- in order to conceal his fraud at the Punjab National Bank, sources told the Mumbai Mirror.
Modi made the changes to his businesses in January 2016 but did not inform the PNB, the sources revealed.
The three businesses secured loans through fraudulent letters of undertaking, the CBI claims. By appointing dummy directors as “majority stakeholders,” Modi was able to continue to fraudulently secure loans, the sources said.
“The three firms were owned by accused Nirav Modi’s family and controlled by him and his wife,” said one source.
“In order to conceal the crime, in January 2016, he inducted two persons as dummy partners in each of the three firms and got a deed of partnership signed by them, showing them as majority stakeholders.”
Modi is accused of defrauding the PNB and a consortium of other lenders through the three businesses mentioned above, to the tune of Rs 6,498 crore ($976.7 million).
The entire fraud total has passed Rs 13,500 crore and Modi’s Uncle, and fellow jeweller, Mehul Choksi, is also accused of participating in the fraud, through his fine jewellery business, Gitanjali Gems.
Nirav Modi remains in a UK jail and awaits his extradition trail, which is scheduled for May 11 to 15.
Mehul Choksi is believed to be residing in Antigua, where he has taken citizenship and Indian authorities are working to secure his extradition to India.
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