PNB probe: ED to approach tax haven countries

New Delhi: The Enforcement Directorate (ED) is all set to approach authorities concerned in Hong Kong, London, the UAE and certain tax haven countries to get details about at least 25 overseas bank accounts of diamantaire Nirav Modi and owner of Gitanjali Gems Mehul Choksi.

Sources in the agency said around 25 overseas accounts are being secretly managed by Nirav Modi and Choksi. The ED will also request the concerned authorities in these countries to freeze these accounts of the duo, they added. “Investigation by the agency has revealed that Modi and Choksi allegedly created several bank accounts to divert loan amount which they had taken from several banks. These accounts, managed by the duo, were allegedly opened in the name of shell companies,” sources said.

The CBI is preparing to send judicial requests to five countries to seek more information about the overseas business activities of Nirav Modi and Choksi as part of its investigation into the multi-crore PNB fraud case. The CBI will soon approach a competent court for sending judicial requests or letters rogatory (LRs) to the authorities concerned in six countries. The agency may send LRs to the USA, Hong Kong, the UAE, South Africa and Singapore, they added.

The LR request is for the purpose of identification and seizures of proceeds of crime and collecting documents, which are required in connection with the investigations. A letter rogatory is a formal request from a court to a foreign court for judicial assistance. “The duo have spread their business operations in various countries. They had got issued multiple high value Letters of Undertaking (LoUs) in favour of their firms from PNB, which resulted in disbursement of funds as per the SWIFT messages sent by PNB,” sources said.

The CBI has so far registered total three FIRs pertaining to the PNB fraud case.