Mumbai: Amid Enforcement Directorate (ED) searches at more than 39 locations across India, including 10 in Mumbai and a seizure of valuables worth Rs 22 crore on Monday in connection with the multi-crore fraud involving diamantaire Nirav Modi, ED director Karnal Singh flew down to the city to supervise the investigation.
The ED is now in the process of ascertaining the market value of the seized items with the help of valuers from other banks. The stock value of seized items, including diamond-studded jewellery and other ornaments whose valuation is underway is around Rs 5,100 crore.
“The intricate details pertaining to the properties where the raids were conducted and the receipts and payment authentication will come from income tax department. The IT department will submit a report on it,” said a senior ED officer. The letter of undertaking (LoU) issued are directly sent overseas, which are honoured by the overseas branches of the banks, the probe has revealed. The first LoU was issued in March 2011.
The ED has also sought the auditor’s report from the bank since 2011.
The investigation agency added that other options to secure information on activities of Modi and his cronies would be taken soon.
“The probe has to reach a certain level after which options will be resorted to such as sending letters rogatory to Hong Kong and other countries, if needed. The probe is being conducted in two phases: intelligence gathering and the investigation process,” the ED officer said.
Officials added that the Prevention of Money Laundering Act empowers them to attach assets equivalent to the losses caused to public sector undertakings. “Our job is not to allow them to take away things before attaching,” he added.
Officials revealed that the raids would continue for few more days.
