Authorities yesterday said they have seized assets of fugitive billionaire jeweller Nirav Modi worth some $87mn, piling pressure on one of the main suspects in a $1.8bn fraud at a major state-run bank.
The seized assets included overseas bank accounts and diamond studded jewellery to the tune of $3.1mn that has been brought back to India from Hong Kong in 23 shipments, the Enforcement Directorate (ED) said.
The jewellery had been shipped out after Indian federal police registered a case of fraud against Modi in January.
“The international co-operation has borne fruit,” the ED said in a statement.
“This has resulted in (the) seizure and provisional attachment of jewellery, bank accounts and immovable properties worth $87mn in India as well as four foreign jurisdictions.”
The list of seized assets include a London property worth about $7.8mn and two others in New York’s popular Central Park, valued at $29mn.
According to the ED officials, they were purchased in the name of The Ithaca Trust.
One of the properties in Central Park south in New York was in the name of Central Park Real Estate LLC, a group company of Firestar Group.
In 2018, it was transferred to the Trust.
The beneficiary of the Ithaca Trust allegedly is Nirav Modi’s wife Ami Modi, a US national, and her children and the settler of the trust was Nirav Modi’s sister Purvi Modi, a Belgian national.
“The other property was also purchased in the name of The Ithaca Trust in 2017. And before paying the consideration for the property, the stolen fund was layered extensively involving multiple jurisdictions like Dubai, Bahamas, USA, Singapore etc.,” the official said.
“The consideration was paid from a fiduciary account of Commonwealth Trust Company, Singapore and the deal was carried out by a lawyer firm based in US,” the official said.
The official said the London property’s beneficial owner is Nirav Modi’s sister Purvi.
According to the official, the property was bought in the name of the Belvedere Holdings Group Limited which was managed by Trident Trust in Singapore, and established by Monte Cristo Trust.
“The said trust is having Purvi Modi as settler and beneficiary,” he said.
Modi, last seen in Britain, fled India in February after authorities accused him of defrauding the Punjab National Bank.
Modi and his uncle and business partner Mehul Choksi, also a diamond merchant, are accused of illegally diverting loans from the bank to foreign-based companies.
Choksi is in Antigua.
Modi, 47, had luxury stores in several major cities and boasted celebrity customers including actresses Naomi Watts, Kate Winslet and Priyanka Chopra.
Before the case, Forbes had estimated his worth at $1.73bn, placing him 85th on India’s rich list.
He has now been removed from the ranking.
In February and March, the ED seized Modi’s farmhouse, high-end antique jewellery, watches and rare paintings.
Interpol has issued a Red Corner Notice against Nirav Modi, Neeshal, Purvi and his executive Subhash Parab.
Yesterday, Interpol, at the request of the Central Bureau of Investigation and ED, issued a Red Corner Notice against Nirav Modi’s trusted official Aditya Nanavati.
Nanavati used to head the operations of Firestar Diamond’s business in Hong Kong.
It is learnt that he is also in Belgium.
The official also said that Letters of Rogatory (LR) have also been sent to the authorities of foreign jurisdictions to enforce the provisional attachment orders.
Modi is not the only Indian billionaire facing heat from the authorities.
Vijay Mallya, a business tycoon who owned a Formula One team and the failed Kingfisher Airlines, left India in 2016 after authorities launched money-laundering charges against him.
He was subsequently arrested in Britain and released on bail as he battles extradition, living in a sprawling $15mn mansion in southeast England.