Diamonds vs Money - ED brings back Rs 1,350 crore worth polished diamonds and pearls of Nirav Modi from Hong Kong
After a special court granted attachment and confiscation of assets owned by fleeing diamantaire Nirav Modi and Mehul Choksi, Enforcement Directorate brought back over 2,300 kg of polished diamonds and pearls worth Rs 1,350 crore of firms belonging to Nirav Modi and Mehul Choksi from Hong Kong.
Both the businessmen are being probed by ED under Prevention of Money Laundering Act. Nirav Modi and his uncle Mehul Choksi cheated Punjab National Bank (PNB) of Rs 14,000 crore through issuance of fraudulent Letters of Undertaking (LoUs), in connivance with some bank officials also being involved in the scam.
The valuables include polished diamonds, pearls and silver jewellery worth Rs 1,350 crore. The ED completed "all legal formalities" with authorities in Hong Kong to bring back these valuables, the agency said. These will formally be seized under the PMLA now.
The impact of this mega scam is still haunting the luxury items and diamond industry with most banks denying loans and advances to the diamond sector, thereby creating a liquidity and credit crisis for the diamond sector. Also the share of the lender is also on a declining mode after the breakout of the scam. PNB has seen its worst ever share performance since listing after the fallout of the Nirav Modi scam
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