The Central Bureau of Investigation has sought the extradition of fugitive diamond trader Nirav Modi’s brother and Belgian national Neeshal Modi. A request has been forwarded to the Ministry of Home Affairs for necessary action, an official said yesterday.
“The request for extradition of Neeshal Modi from Belgium was shared with the MHA on Friday. It will be forwarded to the Ministry of External Affairs for further action,” the CBI official said.
The agency has filed a charge-sheet against Neeshal Modi and his extradition is necessary for investigation in the Punjab National Bank fraud of over Rs135bn, the official said.
According to the CBI official, the extradition process was initiated after Neeshal Modi was spotted in Belgium.
The Interpol in July issued a Red Corner Notice (RCN) against Nirav, Neeshal and Nirav’s company executive Subhash Parab following a CBI request.
The Interpol website displays Neeshal’s picture, citing charges of criminal conspiracy, criminal breach of trust by a public servant, or by banker merchant or agent, cheating and dishonesty including delivery of property apart from offences under the Prevention of Corruption Act.
In August, a special court in Mumbai issued summonses to Nirav Modi’s sister Purvi Modi who too is a Belgian citizen, and Neeshal, asking them to appear before it on September 25. The court said that if they failed to appear, their properties would be confiscated under the newly enacted Fugitive Offenders Act.
The Interpol has issued similar a notice against Nirav Modi, who along with his family and uncle Mehul Choksi of Gitanjali Group left the country in January, a month before the fraud came to light.
Nirav Modi’s wife Ami, a US citizen, left on January 6 and Choksi on January 4.
Choksi had taken the citizenship of Antigua and Barbuda in November 2017.
Officials said yesterday that following a request from the Enforcement Directorate, Interpol had issued a Red Corner Notice against Purvi.
An ED official said Purvi was the owner and director of several shell companies formed solely for the purpose of laundering the money and was the direct beneficiary of the proceeds of crime.
“Purvi Modi played a major role in laundering the proceeds of the crime generated from the PNB scam. She is beneficiary of at least $133mn scam money,” the ED official requesting anonymity told IANS.
“She is owner/ director of shell/ investment companies formed solely to launder the proceeds of the crime through companies - Fine Classic FZE (UAE), Lili Mountain Investment, Pristyn Holdings Ltd, Novelar International Holdings Ltd and Pavilion Point Co-operation in British Virgin Islands, Islington International Holdings Pvt Ltd and Belvedere Group Holdings Ltd in Singapore,” he said.
“These companies were formed and managed in a “very complex manner to camouflage the criminal origin of funds in these companies,” the official said.
“Some trusts were also incorporated for money laundering,” he said, adding that Purvi was found to have links with Montecristo Trust, Ithaca Trust and New Zealand Trust.
The ED further revealed that bank accounts were opened in her name and in the name of her companies in overseas locations like Barbados, Mauritius, Switzerland, Singapore, the United Kingdom and Hong Kong, among others.
“The funds stolen from PNB to the tune of over Rs500 crore were invested in Firestar India via Foreign Direct Investment (FDI) after layering through above mentioned companies,” he said.
Beside laundering money, Purvi Modi also purchased properties in foreign countries in the name of shell companies controlled by her, the official said.
“Earlier, Purvi Modi was the beneficiary of Dubai and Hong Kong-based dummy companies in which letters of undertaking (LOUs) were credited. Later, her name was removed from these companies and dummy directors were introduced,” the official said.
“Therefore, she actively participated in the crime of money laundering and layering of the money thus acquired and was also the beneficiary of the proceeds of crime,” he said.
The red corner notice is issued to seek the location and arrest of wanted person(s) for extradition or similar legal action.