The Enforcement Directorate (ED) has seized more than half a dozen luxury vehicles belonging to Nirav Modi, including a Porsche Panamera and a Rolls-Royce Ghost in an investigation into an alleged fraud that hit the Punjab National Bank.
The Enforcement Directorate is responsible for foreign exchange and money laundering offences and has been conducting separate raids at the premises linked to Modi, including homes and offices. It had previously seized jewellery, gold, diamonds, precious metals and stones worth Rs. 56.74 billion.
Besides seizure of the cars, the Enforcement Directorate has also frozen shares and mutual funds worth 78 million held by Modi and 867.2 million rupees by Choksi, the details of which were shared by the ED on Twitter.
Earlier, Modi wrote a letter to the PNB management stating that he owed less than Rs. 50 billion to the bank which is a lot less than what the bank claims. He also mentioned that the bank had threatened its chances of recovering the sums owed by going public with its allegations.
Responding to the letter on Thursday, PNB said the LoUs were illegally obtained by Modi and it was obliged by law to report it to law enforcement agencies, as they were potential violations of money laundering laws and the Foreign Exchange Management Act.
The letter, seen by Reuters, urged Modi to respond with a “concrete and implementable” repayment plan on the outstanding dues.
Nirav Modi his uncle Mehul Choksi, are accused of obtaining illegal letters of undertakings that were used to acquire loans from overseas branches of Indian bank. As the investigation continues, the police have arrested a dozen people so far – six from the bank and six more from Modi and Choksi’s companies.
While Nirav Modi’s lawyer has refuted accusations that his client was involved in any fraud, Choksi has not commented on the matter but his firm, Gitanjali Gems, has also denied any involvement in the alleged fraud.