New Delhi: The Enforcement Directorate (ED) has arrested a close associate and the vice president of a firm of diamantaire Nirav Modi for allegedly aiding in the laundering of over Rs 5,900 crore in connection with the PNB bank scam case.
“Shyam Sunder Wadhwa, the vice president of the Firestar group, was arrested last night under the Prevention of Money Laundering Act (PMLA) in Mumbai”, said the ED in a statement.
It said Mr Wadhwa, a chartered accountant, was sent to seven days of ED custody by a special anti-money laundering court in Mumbai on Wednesday. He was described by the central probe agency as a “close confidant” of Mr Modi. “He is in close touch with Modi and also involved in money laundering at the behest of and in aid of Modi,” sources said. This is the ED's first arrest in the case.
The ED claimed Mr Wadhwa was instrumental in setting up two companies in Hong Kong (Ms Aura Gem and Ms Sino Traders) along with “dummy” directors and these firms “were used” for laundering proceed of crime and substantial amounts totalling Rs 5,921 crore.
These funds were routed from the LOUs (Letters of Undertaking) fraudulently" issued by the PNB for the Nirav Modi group of companies--Ms Solar Exports, Ms Stellar Diamonds and Ms Diamonds R US, it said.
“Out of the funds so received, Ms Aura Gem has transferred an amount of Rs 468 crore and Ms Sino Traders Rs 506.69 crore to the said three companies and completed the process of laundering money,” it said.
