PNB scam: 200 shell firms probed, ED raids 45 sites

New Delhi: Around 200 shell firms and benami assets are now under the scanner of Central investigative agencies probing the Rs 11,400-crore alleged fraud at Punjab National Bank (PNB), involving diamond czar Nirav Modi, his relative and business partner Mehul Choksi and others.

The Enforcement Directorate (ED), which continued its searches against Modi, Choksi and their companies for the fourth day on Sunday, is also moving to attach at least two dozen immovable assets under the Prevention of Money Laundering Act (PMLA), ED sources said. The ED conducted searches at 45 premises, including jewellery showrooms and workshops allegedly linked to the accused, across the country on Sunday.

“As many as 29 properties — of Nirav Modi, his family members and companies — that have been provisionally attached by the income-tax department, are being assessed by the ED under PMLA. A few more assets will be attached soon under the stringent provisions of the PMLA”, a senior ED official said. He added that the ED and the I-T department had zeroed in on around 200 dummy or shell companies in the country and abroad that were being used to route or receive funds as part of the alleged fraud. It is suspected the shell firms were being used by the accused to launder money and create “benami” assets in the form of land, gold and precious stones, that are now being probed by the tax department.

Both the ED and the I-T department had formed special teams to investigate the case, sources said. The ED has seized diamonds, gold jewellery and other precious stones worth Rs 5,674 crores till now. The I-T department on Saturday attached nine bank accounts of Gitanjali Gems, its promoter Mehul Choksi and others over a tax evasion probe against them. It also attached 29 properties and 105 bank accounts of Modi, his family members and firms owned by them.

The Central Bureau of Investigation is, meanwhile, now examining the balance sheets of 18 India-based subsidiaries of the Gitanjali group of companies promoted by Mehul Choksi to understand the money trail of funds taken from various banks on the basis of the Rs 11,384-crore guarantees furnished by PNB, sources said. CBI officials said it was continuing the questioning of arrested bank officials — Gokulnath Shetty (retired) and Manoj Kharat — and a Nirav Modi company signatory — besides other PNB officials to track the money trail and trace the depth of the alleged scam, spread across thousand of documents and digital records. They said it was also analysing records recovered from a huge server seized during the searches after registration of the FIR against Mehul Choksi. When asked about the possible quid pro quo involved in the alleged scam, done in collusion with billionaire diamond merchants Choksi, his nephew Nirav Modi and Punjab National Bank officials, they said they were still looking into it and it can’t be clearly determined f there were any regular payments or not.

The CBI on Friday registered the second FIR in the PNB scam. Three companies of Mehul Choksi were named in this FIR, including Gitanjali Gems, Gili India and Nakshatra Brand Ltd. Mehul Choksi has also been mentioned as an accused. The accused in the new FIR include Choksi (managing director, Gitanjali Gems), Gokulnath Shetty (retired DGM, Punjab National Bank), Manoj Kharat (then single-window officer of PNB), and companies Gitanjali Gems Ltd, Gili India Ltd, Nakshatra Brand Ltd, directors of the companies Krishnan Sangameshwaran, Nazura Yash Ajaney, Dinesh Gopaldas Bhatia, Aniyath Shivraman Nair and Dhanesh Vrajlal Sheth. Also named in the FIR are Jyoti Bharat Vora, Anil Umesh Haldipur, Chandrakant Kanu Karkare, Pankhuri Abhijeet Warange, Mihir Bhaskar Joshi and unidentified bank officials.