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PNB fraud case: Nirav Modi’s five dummy firms in Hong Kong whose owners earned Rs 8,000 got Rs 8,000 crore LoUs
According to the ED complaint, fraudulent LoUs worth $ 3,741.93 million (approximately Rs 24,000 crore) were issued to Modi Group firms between 2011 and 2018. Of these, it alleged, the total current outstanding fraudulent LoUs is $ 1,015.34 million.

  OWNERS AND directors of at least five Hong Kong firms that allegedly received about Rs 8,270 crore from Letters of Undertaking (LoUs) issued by Punjab National Bank, on behalf of jeweller Nirav Modi, used to earn only between Rs 8,000 and Rs 30,000 every month, according to the Enforcement Directorate.

Referring to these findings in its prosecution complaint filed in the PNB scam case, the ED has said that Modi created over 15 “dummy companies” overseas to allegedly rotate the LoU funds “in the guise of export-import transactions”.

It claimed that the directors of five such firms — Brilliant Diamonds Ltd, Eternal Diamond Corp Ltd, Fancy Creation Co Ltd, Sino Traders Ltd and Auragem Company Ltd — were actually junior employees and ex-employees of Modi’s Firestar Group.

Identifying some of these persons, the ED stated in its complaint:

* Bhavik Shah, a former diamond assorter for Firestar International, was named the director of Hong Kong-based Brilliant Diamonds. Shah used to earn Rs 10,478 as salary every month as director of Brilliant Diamonds, which did business worth Rs 959 crore with Firestar International in 2015-16.




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