New Delhi, June 6: The Enforcement Directorate in its report against the fugitive diamond jeweller Nirav Modi who is the prime accused in the multi-crore PNB scam has stated that owners and directors of five dummy firms in Hong Kong allegedly received Rs 8,270 crore through Letters of Undertaking (LoUs) issued by the bank.
While Nirav Modi used to pay them only between Rs 8,000 and Rs 30,000 every month, according to the Enforcement Directorate.
ED claimed that Modi and some of his associates used to “communicate dubious transaction instructions” to these dummy firms through accounts that got automatically deleted after a certain period of time. Owners and directors of at least five Hong Kong firms that allegedly received about Rs 8,270 crore from Letters of Undertaking (LoUs) issued by Punjab National Bank, on behalf of jeweller Nirav Modi, used to earn only between Rs 8,000 and Rs 30,000 every month, according to the Enforcement Directorate, according to the Enforcement Directorate, an Indian Express report has revealed.
The ED further added that the so-called directors of five such dummy firms were actually junior employees and former employees of Modi’s Firestar Group.A large chunk of Modi’s wealth was also transferred to Firestar Diamond BVBA, which is based in Antwerp, Belgium
According to the ED complaint, fraudulent LoUs worth $ 3,741.93 million (approximately Rs 24,000 crore) were issued to Modi Group firms between 2011 and 2018. Of these, it alleged, the total current outstanding fraudulent LoUs is $ 1,015.34 million.
The 14,000-page complaint said that UAE-based nine dummy companies were used by Nirav Modi for diverting Rs 1,811 crore to his group firms, his sister Purvi Modi and her husband Maiank Mehta.
The first prosecution complaint (chargesheet) filed by the Enforcement Directorate on May 25, it stated that Modi created over 15 “dummy companies” in UAE and Hong Kong to allegedly rotate the LoU funds “in the guise of export-import transactions” and diverted nearly Rs 4,2999 of Rs 6,939.84 crore to himself, his firms and his relatives.
Modi floated shell companies to transfer funds and moved Rs 100 crore from the US to India and other coutries within a year (January 2017 to February 2018) .The cobweb was specifically designed to dodge agencies and authorities to carry out financial transactions without any legitimate business activities.