Choksi diverted over Rs 3,250-cr to foreign shores, sold jewellery at inflated prices: ED

Agencies
September 12, 2018

New Delhi, Sept 12: An ED investigation has found that absconding jeweller Mehul Choksi diverted over Rs 3,250 crore funds, allegedly defrauded from a PNB branch in Mumbai, to foreign shores and he was in business of "highly inflating" prices of precious metals sold from his outlets. The businessman has rejected the charges as "baseless".

The agency, which is probing the $2 billion (about Rs 13,000 crore) alleged bank fraud that also involved his nephew Nirav Modi, said Choksi was "using several dummy companies" to rotate funds and to divert money for his personal use.

In its chargesheet, the Enforcement Directorate has said Choksi allegedly diverted $56.12 million (about Rs 400 crore) of loan funds to Nirav Modi and about $50 million (Rs 360 crore approx) to Modi's father Deepak Modi.

"Choksi was using several dummy companies for rotating his transactions. Under this arrangement, origin of the sale transactions and final destination used to be any of the Gitanjali group of companies.

"For in-between transactions, dummy companies were used for layering purpose wherein only sale/purchase bills were created and no movement of goods used to take place. He has been doing this to project inflated turnover to avail higher banking facility," the Enforcement Directorate (ED) has said in its charge sheet filed against the absconding businessman who is stated to be in the caribbean nation of Antigua now.

Choksi, talking to some media organisations, has termed ED's allegations as "false and baseless". He has also alleged that this properties have been attached by the central probe agency "illegally."

The agency said it has detected that funds to the tune of Rs 3,257.54 crore, that were obtained from PNB's Brady House branch in Mumbai, were "diverted" to countries like Thailand, the US, Belgium, UAE, Italy, Japan and Hong Kong and were deposited in "group entity" firms.

These funds, it said in its probe report accessed by PTI, were "fraudulently obtained" by Choksi and his firms from the PNB by way of Letters of Undertaking (LoUs) and Foreign Letters of Credit (FLCs).

It also accused Choksi of grossly over-valuing the gems and jewellery that he sold.

"Choksi used to fix the rate/value of the goods without applying economic rationale. The goods in question were either low value or poor quality and was not commensurate with the price/value fixed by him," the ED said.

The charge sheet further said these charges have been "confirmed" in the statement given to it under the Prevention of Money Laundering Act (PMLA), by Vice President (banking operations) of Choksi's Gitanjali Group, Vipul Chitalia.

"It is further confirmed from the goods seized at Hyderabad whose declared value was found to be highly inflated and in some cases the actual value of these goods is even less than 3 percent of the declared value," the ED said.

The agency alleged the proceeds of crime of money laundering in this case involving Choksi were "partly remitted back to Gitanjali group of companies" in India in guise of export-import transactions for settling earlier credit liabilities.

"The proceeds of crime has also been used for making payment against the villa booked by Choksi in UAE and for transferring preferential shares of MS Bezel Jewellery (India) Pvt Ltd to Ms Al Burj Diamond and Jewellery FZE, UAE...," the charge sheet said.

It also charged Choski of conducting illegal 'air to air' export using the Gitanjali group, where consignments exported from India to Hong Kong and back were routed to Dubai but were not cleared through customs at the UAE airport and were exported to Hong Kong or India.

The ED report also said that "fraudulent export and import" was being done by Choksi's firms and there was "no manufacturing activity" in any of the overseas companies situated at Hong Kong and the UAE and only bogus business and sale amongst group companies were carried out.

"The export/import was also not genuine and was just rotational transactions. The jewellery exported from India was dismantled and diamonds/pearls were taken out of it," the agency charged.

The ED said, "It is apparent that the funds acquired by fraudulent means were siphoned off within the country as well as to the overseas dummy companies owned and controlled by Mehul Choksi himself."

"The dummy directors and others were mechanically transferring the goods and monies as per the directions of Choksi without any economic rationale and logic," the agency alleged.

The businessman has been also charged by the CBI for alleged corruption in this case and the ED has sought an Interpol arrest warrant against him apart from approaching a Mumbai court to get him declared a fugitive economic offender under a new law by the same name.

India has also recently moved for his extradition from Antigua.

Comments

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.
News Network
November 29,2024

masjidsambal.jpg

New DelhiI: The Supreme Court on Friday asked the Sambhal Shahi Jama Masjid committee to approach the Allahabad High Court and told the district court not to act until then upon a survey ordered on a claim of the mosque having built on a pre-existing temple.

A bench of Chief Justice of India Sanjiv Khanna and Sanjay Kumar directed Uttar Pradesh to maintain peace and harmony in the area, where four protesters were killed during the heavy stone pelting. The court also ordered the survey report of the advocate commissioner's report should be kept in sealed cover.

"We don't want anything to happen in the meanwhile...Let them (Shahi Jama Masjid committee) exercise appropriate remedies. We will keep this pending," the bench said.

Advocate Vishnu Shankar Jain, appearing for plaintiff Hari Shankar Jain and others submitted the next date of hearing has been fixed for January 8 before the civil judge (senior division).

Senior advocate Huzefa Ahmadi, appearing for the petitioner committee, contended the order is capable of great public mischief. He said as of 10 such suits are pending across the country where the survey is sought to be conducted.

"We hope and trust the trial court will not take any proceedings...We have not expressed any opinion on merits," the bench said, fixing the matter for consideration in the week commencing on January 6.

In case any revision application is filed, it should be heard within three days before the High Court, the bench ordered.

At the outset, the bench said it had some reservations with the order passed by the Civil Judge (senior division) on November 19.

The court told the Uttar Pradesh government represented by Additional Solicitor General K M Nataraj that the district administration has to remain neutral and maintain peace in the area.

The court directed the plaintiff not to file any papers.

It also ordered the advocate commissioner's report should be kept in a sealed cover.

The petitioner committee questioned the validity of the survey ordered within a short period, triggering violence in the area and leading to the death of four protestors.

The plea filed by the Committee of Management, Shahi Jama Masjid, Sambhal claimed "the hot haste" in which the survey was allowed and conducted all within a day and suddenly another survey was conducted after a couple of days with a notice of barely six hours that had given rise to widespread communal tensions and threatened the secular and democratic fabric of the nation.

The survey was ordered by a civil judge (senior division) on a suit filed by advocate Hari Shankar Jain and others.

According to the plaintiffs, Shahi Jama Masjid at Chandausi was built by Mughal emperor Babar in 1526 after demolishing the Shri Harihar temple.

Comments

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.
News Network
November 30,2024

vlogger.jpg

Bengaluru, Nov 30: The Bengaluru police have unraveled the brutal murder of Assam-born vlogger and counselor Maya Gogoi, apprehending her boyfriend-turned-assailant, Aarav Hanoy, from Devanahalli on the city’s outskirts. Aarav, a Kerala native, confessed to the crime, citing a personal quarrel as the trigger for his actions.

“We are still verifying his statements to determine whether the murder was premeditated. Scientific validation will help us establish the exact motive,” stated DCP (East) Devaraju.

A Sinister Timeline

The investigation revealed that after the crime, Aarav fled the scene, traveling extensively across Madhya Pradesh and Uttar Pradesh before returning to Bengaluru. Using CCTV footage and tracking efforts, police located him near Devanahalli, where he was arrested on Friday.

Aarav and Maya had checked into a service apartment on November 23. A heated argument led Aarav to stab Maya to death using a knife he had ordered online along with a nylon rope. After the murder, Aarav shockingly spent two days in the apartment with Maya's lifeless body, reportedly smoking cigarettes in front of the corpse before fleeing the scene on November 26.

The Relationship and the Crime

Aarav and Maya met six months ago via the Bumble app, leading to a relationship. Aarav, an intern earning Rs 15,000 monthly, had been in Bengaluru for six months, while Maya worked at counseling centers in Jayanagar and HSR Layout. Maya’s sister, who lived with her, was aware of the relationship.

On November 22, Maya informed her sister she wouldn’t be returning home, citing an office party. The following night, she messaged again, stating she was out partying. CCTV footage from the apartment shows Maya entering the room with Aarav, appearing cheerful and at ease.

Police Action and Next Steps

The police deployed three teams, with one tracking Aarav in Kerala and another in North Karnataka. After extensive efforts, they arrested him in Devanahalli. “The formalities of the arrest will be completed by tomorrow, and we’ll take him into custody for further investigation,” the DCP said.

The shocking crime, discovered within the Indiranagar police station limits on November 26, has sent shockwaves through the city. Investigators are piecing together the sequence of events as further details emerge in this harrowing case.

Comments

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.
News Network
November 28,2024

Mangaluru: In a heartbreaking incident, three first-year nursing students drowned in the Phalguni River near Barkaje dam, within the Venoor police station limits, on Wednesday evening.

Preliminary reports identify the deceased as Lawrence from Moodbidri, Suraj from Belthangady, and Jaison from Vagga in Bantwal.

According to police sources, the tragedy occurred around 5:30 PM. The group of friends had gathered at a friend's house to celebrate a church feast. After lunch, five of them decided to visit the river near the dam for a swim.

While in the water, two of the students were caught in the strong current. Jaison, attempting to rescue them, was also swept away. Fire and emergency services personnel, along with the police, rushed to the scene and retrieved the bodies.

This tragic event has left the community in deep sorrow.

Comments

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.