Unable to bring fugitive diamond merchant Nirav Modi back to the country to face trail in a money laundering case, the investigating agency has at least managed to bring some of his jewels back. Perhaps in a first instance, where the Enforcement Directorate has brought back proceeds of crime of this nature from a foreign jurisdiction, diamond studded jewellery worth Rs 22.69 crore was set to sail for India from Hong Kong in 23 shipments some days ago. The move came after the ED attached assets worth Rs 637 crore of the fugitive billionaire.
Nirav Modi is accused of defrauding the state-run Punjab National Bank of Rs 13,500 crore, along with his uncle Mehul Choksi, also a diamond merchant. The Interpol has issued a red corner notice against both the accused, who fled the country after the scam came to light.
ED officials said that during the investigation, it was found that a stock of jewellery had been shipped abroad from India after registration of FIR by the CBI in January this year.
ED found that a stock of jewellery had been shipped abroad from India after registration of FIR by the CBI in January this year.
The jewellery had been kept in the vault of a private company in Hong Kong on behalf of Nirav Modi. ED officials said they contacted the subject company and it’s London headquarters. It was after much persuasion, follow up and necessary documentation that the agency could bring back the jewellery.
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“The stock value of this jewellery was declared to be around Rs 85 crore. This jewellery was sent to Hong Kong by Firestar Group of Companies,” said the ED officials. On independent valuation, the value of the jewellery was pegged at Rs 22.69 crore.
Diamond rings, bracelets and necklaces were not the only possessions Nirav Modi fled the country with. According to the ED officials, the money taken from the PNB was used to purchase lavish flats and sprawling properties not only within the country but also in Hong Kong, New York and London. These properties, in upmarket locations across these cities, have been attached by the ED, which is now armed with the new Fugitive Economic Offenders Act.
ED officials said that the agency had been working in close coordination with overseas agencies over the last three months to identify and attach overseas assets of Nirav Modi.
Two immovable properties having a total value of USD 29.99 million (Rs 216 crore approx) and beneficially owned by Nirav Modi in New York have been attached under Section 5 of the Prevention of Money Laundering Act. The properties are in Central Park, New York and were purchased in the name of 'The Ithaca Trust', for a value of $25 million and $4.99 million respectively, said the ED.
One of the properties in Central Park South, New York was in the name of Central Park Real Estate LLC, a group company of Firestar Group. In 2018, it was transferred to The Ithaca Trust. Mortgage taken on this property from the HSBC Bank was paid by Firestar Diamond Inc, a beneficiary of the stolen fund, said agency officials.
The beneficiary of The Ithaca Trust is Ami Modi (wife of Nirav Modi) and her children and the settler of the said trust is Purvi Modi (sister of Nirav Modi), they said .
The other property was also purchased in the name of The Ithaca Trust in 2017. The agency has claimed that the ultimate source of the funds used to purchase this property was the stolen money from PNB.
“Before paying the consideration for the property, the stolen fund was layered extensively involving multiple jurisdictions like Dubai, Bahamas, USA, Singapore etc. The consideration was paid from a fiduciary account of Commonwealth Trust Company, Singapore and the deal was carried out by a lawyer firm based in the USA,” it said.
According to the ED officials, the money taken from the PNB was used to purchase lavish flats and sprawling properties not only within the country but also in Hong Kong, New York and London
ED officials said that the agency had been working in close coordination with overseas agencies over the last three months to identify and attach overseas assets of Nirav Modi.
During the probe, the ED also found that Nirav Modi’s sister Purvi Modi beneficially owned property having value of euro 6.25 million (Rs 56.97 crore) in London. The Interpol has already issued a red corner notice against Purvi, who is also an accused in the PNB scam.
“The property is flat no 103, Marathon House, 200 Marylebone Road, London. This property was purchased in the name of Belvedere Holdings Group Limited for the value of euro 6.25 million in 2017. Belvedere Holdings Group Limited, which is managed by Trident Trust, Singapore, has been established by Monte Cristo Trust. The said trust has Purvi Modi as settler and beneficiary,” said the officials .
“During the investigation, it was revealed that the ultimate source of the funds used to purchase this property was the stolen fund from PNB,” said the officials revealing that this property has also been attached under Section 5 of the Prevention of Money Laundering Act.
Among the immovable assets of Nirav Modi, the ED has also attached a flat in South Mumbai worth Rs 19.5 crore and owned by his sister Purvi Modi. “The deed for this flat was signed by Neeshal Modi, her brother to whom the “Power of Attorney” was given by her. The consideration for this flat was paid by Purvi Modi from her Barclays Bank account maintained in Singapore,” said the ED.
Another account belonging to an investment company registered in British Virgin Island and owned by Purvi Modi and Maiank Mehta in Singapore, and having a balance of USD 6.12 Million ( Rs 44 crore approx) has also been attached.
