PNB scam: Government to propose change to Swift system; ED seizes Nirav Modi, Mehul Choksi stocks worth Rs 94 crore

The government is expected to propose a change to the Swift system -- theglobal payments network that PNB officials gamed to issue Letters of Understanding (LoUs) to Nirav Modi. Modi had got his bank loans on the basis of the LoUs.

The government is expected to decree that a report of the day's Swift messages is to be generated at the end of every day, and that one officer other than the two officials who checkand authorise the messages are to verify them and place them before the branch head.

The Enforcement Directorate meanwhile continued its crackdown on tainted diamond czar Nirav Modi. In addition to freezing shares and mutual fundsworth Rs 94 crore belonging to Nirav Modi and Mehul Choksi, it also seized a number of luxury cars belonging to the duo.

In total, ED froze mutual funds and shares worth Rs 7.80 crore belonging to Nirav Modi and MF and shares worth Rs 86.72 crore owned by Mehul Choksi.

The investigative agency also seized nine cars belonging to Nirav Modi and his companies. The seized cars include one Rolls Royce Ghost, two Mercedes Benz models GL 350 CDI, one Porsche Panameras, 3 Honda cars, one Toyota Fortuners and one Toyota Innova.

Some precious paintings belonging to Modi including the works of Francis Souza, Amrita Sher-Gil, VS Gaitonde, Akbar Padamsee, Bharti Kher and MF Husain have also been seized. ED is evaluating the authenticity of these paintings.

Meanwhile, Modi and Choksi have asked their employees to look for new jobs. Choksi's Gitanjali Gems has handed over pink slips to five thousand employees, reported Zee Business.

Nirav Modi too has reportedly written to his employees to look for another job. He is said to have told his employees that the future is unsure and thus they should explore other avenues.

The ED and the Income Tax department have zeroed in on about 200 dummy or shell companies in India and abroad that were being used to route or receive funds as part of the alleged fraud.

Modi, Choksi and others are being investigated by multiple probe agencies after it recently came to light, following a complaint by the PNB, that they allegedly cheated the nationalised bank to the tune of Rs 11,400 crore, with the purported involvement of a few employees of the bank. The CBI and the ED have registered two FIRs each to probe the case.

Vipul Ambani laundered money?

Meanwhile, it's reliably learned that Vipul Ambani was not just Chief Financial Officer (CFO), he was also the director of eight companies.

Agency sources inform that during the interrogation, Vipul Ambani disclosed details of the companies where he is director/managing director along with his wife Preeti Ambani and others.

The details of the companies are:

1.Pratibhuti Holdings Private Limited
2.Tower Capital And Securities Private Limited
3. Contango Trading & Commodity Private Limited
4. Tower Corporate Financial Services Private Limited
5. Tower Capital Advisors Private Limited
6. Tower Commodities And Derivatives Private Limited
7. Tower Capital And Financial Services Private Limited
8. Unitis Tower Wealth Advisors Private Limited

Agencies suspect that Ambani knew all inside trade of Nirav Modi and company as a CFO and diverted the earned income into companies owned by him. Agencies investigating if these companies were used as a mean for money laundering. If found to be true, there could be more trouble for him in future with other agencies swinging into action against him soon.

Gili director's residence sealed

The ED on Wednesday sealed the residence of Gili India Limited director Aniyath Shivraman at Kalyan in Maharashtra`s Thane district.

The ED also seized several important documents related to the Punjab National Bank.