Nirav Modi’s Firm Moves Delhi High Court Against ED Case in PNB Scam

Mumbai, March 6: Nirav Modi's firm Firestar Diamond on Tuesday challenged the money laundering case lodged by the Enforcement Directorate (ED) at the Delhi High Court in connection with the over Rs 12

Mumbai, March 6: Nirav Modi’s firm Firestar Diamond on Tuesday challenged the money laundering case lodged by the Enforcement Directorate (ED) at the Delhi High Court in connection with the over Rs 12,600 crore Punjab National Bank (PNB) fraud case.

Firestar Diamond International Private Ltd, which is named as one of the accused in the PNB scam, has sought a direction to the ministry of finance and the Directorate of Enforcement to supply it several documents, including a copy of the search, was warranted.

Nirav Modi and his uncle Mehul Choksi and others are being investigated by multiple investigating agencies after the alleged fraud recently came to light following a complaint by the PNB that they had allegedly cheated the nationalised bank.

The ED had also registered the money laundering case against Nirav Modi and several of his firms on the basis of a CBI FIR.

The PNB had issued Rs 11,384 crore worth of Letters of Understanding and Letters of Credit were issued by the bank in favour of jewellers Nirav Modi and Mehul Choksi through SWIFT messages with only smaller sums being entered in the core banking solutions system.

The ED and the CBI had registered FIRs to probe the case and also intensified the crackdown on Nirav Modi and Choksi with the ED seizing jewellery and assets worth thousands of crores of rupees, the I-T department attaching various properties, and the CBI grilling several senior executives of his company. Challenging the ED’s move, the firm through its advocate Mudit Jain sought a direction to quash the act of the ED to seize their movable properties.

“Quash the ED action of taking away the movable property and depositing the same with the PNB bank,” the plea said, adding that the agency be directed to supply copy of the Enforcement Case Information Report (ECIR) registered by it, pursuant to which the search and seizure was conducted by the ED in its premises.

It also sought to frame of guidelines for conducting search and seizure by the ED, including on the aspect of whether the victim can be permitted to be a part of the process, in order to ensure fair and transparent functioning of the agency.

(With inputs from agencies)