The Enforcement Directorate (ED) has revealed that fugitive diamond jeweller Nirav Modi diverted $629 million of the $1015.34 million outstanding fraudulent Letters of Undertaking (LoU) issued by Punjab National Bank (PNB) to himself, his firms and his relatives, through 15 “dummy companies” based in the UAE and Hong Kong. According to the first prosecution complaint (chargesheet) filed by the agency, Modi diverted $265 million to his Group firms, his sister Purvi Modi and her husband Maiank Mehta through nine UAE-based dummy firms- Diagems, FZC, Pacific Gems, Unity Trading Company, Tri Color Gems, Universal Fine Jewellery, Himalayan Trader FZE, Hamilton Precious Traders, Unique Diamond, and Jewellery FZC, and Vista Jewellery FZC.
ED, in its 14,000-page complaint, has also said that Modi diverted another $312.81 million of the LoU funds to its various Group companies through six Hong Kong-based firms indirectly controlled by him. The firms are Auragem Company, Brilliant Diamonds, Eternal Diamond Corporation, Sino Trader, Fancy Creations, and Sunshine Gems.
The ED also said that at least £13.7 million of the LoU funds were brought back to Modi's personal bank accounts in India. Of the $265 million, the agency has found that $115 million was diverted to Purvi and Maiank and another $50 million was given to an offshore firm, Lili Mountain Investment, allegedly controlled by Purvi. Dollar 65 million was ploughed into Modi's flagship firm in India, Firestar International Pvt Ltd, by a couple of offshore firms against share subscription, and another $35 million was diverted to Modi himself.
The prosecution complaint filed by the ED has also named Modi's father, Deepak Modi, his brothers Neeshal and Nehal, as accused in the probe.
