Friday, Mar 29, 2024 | Last Update : 12:10 PM IST

  Metros   Mumbai  29 Mar 2018  Shell cos sent Rs 900 crore to 3 NiMo companies

Shell cos sent Rs 900 crore to 3 NiMo companies

THE ASIAN AGE.
Published : Mar 29, 2018, 1:32 am IST
Updated : Mar 29, 2018, 1:32 am IST

The ED arrested on Tuesday Shyam Wadhwa, vice-president of Modi’s Firestar Group.

Nirav Modi
 Nirav Modi

Mumbai: The Enforcement Directorate’s (ED) money-laundering probe in the Punjab National Bank (PNB) fraud case has revealed that the accused jeweller Nirav Modi and four of his aides had allegedly helped create two Hong Kong-based shell firms, in which a part of the proceeds from around Rs 6,498 crore that was acquired through 150-odd letters of undertaking (LoUs) from the bank, had been sent, ED sources said.

The LoUs were allegedly fraudulently issued to the jeweller’s three group firms, Solar exports, Stellar Diamonds and Diamonds R US, according to the ED.  

The shell firms in turn had allegedly sent back around Rs 900 crore to the three entities controlled by the accused, said sources.

The ED arrested on Tuesday Shyam Wadhwa, vice-president of Modi’s Firestar Group. ED officials said that arrest happened after Wadhwa’s alleged role was found in the creation of the shell firms and money-laundering. “The arrested accused said that on instruction of the accused jeweller, he made three men sign as either shareholders or owners in the two Hong Kong-registered shell firms, Aura Gem Company Ltd and Sino Traders,” said an ED official.

The officer said, “From the records it is seen that from the LoUs fraudulently issued by the PNB for the Nirav Group of Companies, substantial amounts totalling USD 34.6 crore and USD 56.5 crore were paid to Sino Traders and Aura Gem company Limited, respectively.” He said, “It has come to record that Aura Gem has transferred an amount of Rs 468 crore to India in the bank accounts of three firms controlled by the accused jeweller, while Sino Traders transferred Rs 506.69 crore to these three firms.”

According to ED, Wadhwa is allegedly “privy to information that will help in unravelling the truth behind the scam.” The ED has accused him of doing the paperwork pertaining to the formation of the two shell firms floated abroad and making three persons dummy directors /shareholders by getting them sign the relevant papers.

Tags: punjab national bank, nirav modi