Mumbai: Nirav Modi’s home, showrooms and offices in Mumbai, Delhi and Surat were raided by the Enforcement Directorate (ED) on Thursday after the Punjab National Bank (PNB) complained of a staggering fraud at the cost of taxpayers to benefit the celebrity jeweller and others.
Teams of investigators searched the billionaire diamond merchant’s properties a day after PNB reported a Rs 11,000-crore fraud by its own officials to help the jeweller and others get credit without guarantees and in violation of rules.
The Enforcement Directorate is investigating complaints that Nirav Modi and his associates were involved in a swindle worth Rs 280 crore from Punjab National Bank last year.
On Wednesday, PNB bank reported that $1.8 billion or over Rs 11,000 crore of taxpayers’ money had been illegally transferred abroad to select customers from a single branch in Mumbai.
The fraud was revealed when Nirav Modi’s companies sought a fresh loan, as per sources. The officials who had helped them earlier had retired. When the bank insisted on guarantees to issue Letters of Understanding, the Nirav Modi companies allegedly said they had used the facility before. That’s when the bank started investigating.