A day after registering money laundering case in connection with the cheating of Punjab National Bank (PNB) by billionaire jeweller Nirav Modi, the Enforcement Directorate on Thursday conducted raids at his residence and offices in Mumbai. Photograph:( WION )
The Enforcement Directorate(ED) today raided billionaire jeweller Nirav Modi's properties across the country after filing money laundering case for cheating the Punjab National Bank (PNB) of Rs 280 crores.
The ED raided the showroom and office in Mumbai's Kala Ghoda as reports indicated Nirav Modi had fled India before an FIR was lodged by Indian officials.
Raids are also being conducted in Mumbai's Peddar road where Nirav Modi's residence is located and Opera house which is the location of one of his partners.
Another office at Kamla Mills was also raided by ED officials.
In Delhi, ED conducted raids in upmarket Defence Colony area where Nirav Modi's showroom is located.
PNB Fraud Case: ED team at Nirav Modi's showroom & office in Mumbai's Kala Ghoda. pic.twitter.com/3YQq4lyKNj— ANI (@ANI) February 15, 2018
As a result of the scam, PNB stocks today nosedived 10 per cent in opening trade.
Punjab National Bank (PNB) has cautioned other banks about the "modus operandi of the scam". Reports say Union Bank, SBI Overseas Bank, Axis Bank and Allahabad Bank have lent money to Nirav Modi.
"It has been reported through a preliminary investigation that the suspected fraud has been carried out by the perpetrators in collusion with the staff of one of our branches in Mumbai," PNB said.
The Reserve Bank of India(RBI) and the Securities and Exchange Board of India(SEBI) are likely to meet Hong Kong officials relating to the over Rs 11,000 crore fraud at the state-run bank.
SEBI would also be getting in touch with the Securities and Futures Commission (SFC).
According to the officials, the LoUs were mostly used for availing credit at Hong Kong-based branches of some other Indian banks, PTI reported.