Enforcement Directorate brings back Rs 1,350-cr worth polished diamonds, pearls of Nirav Modi, Choksi firms from Hong Kong

WION Web Team
NEW DELHI Published: Jun 10, 2020, 06:28 PM(IST)

File photos of Mehul Choksi (left) and Nirav Modi (right). Photograph:( WION )

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The bank lending to the gems and jewellery industry is on a consistent fall since the financial scam broke out in January 2018. 

After a special court allowed attachment and confiscation of assets owned by diamantaire Nirav Modi and Mehul Choksi, Enforcement Directorate (ED) on Wednesday 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.

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Both the businessmen are being probed by the ED under the Prevention of Money Laundering Act.

Nirav Modi and his uncle Mehul Choksi duped the Punjab National Bank (PNB) of Rs 14,000 crore through issuance of fraudulent Letters of Undertaking (LoUs), in connivance with some bank officials.

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This scam continues to haunt the gems and jewellery industry even two-and-a-half years later, with banks unwilling to lend money to the sector. 

The bank lending to the gems and jewellery industry is on a consistent fall since the financial scam broke out in January 2018. 

Nirav Modi is currently facing a probe by two investigating agencies, ED and CBI. India is fighting to secure his extradition from the UK.

(With inputs from PTI)

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