PNB fraud: Over 50 Nirav Modi-linked companies will be raided, says Finance Ministry sources

Over 50 Nirav Modi-linked companies will be raided by the law enforcement agencies, including the Crime Branch of India (CBI), Enforcement Directorate and Income Tax Department in connection with its money laundering probe and the fraud that has taken place in a branch of the Punjab National Bank (PNB), sources in the finance ministry said on Friday.

Speaking on condition of anonymity, the ministry sources told ANI that every penny will be recovered.

With law enforcement agencies on the job, Nirav Modi and Mehul Choksi's 36 companies under the umbrella company Geetanjali Gems will be probed. Among these 36 companies, around half are operating outside India.

"Movable and immovable properties of Nirav Modi and his wife Ami Modi are being prepared and will be searched and seized," the ministry source added.

He added in a letter written to the banks on February 14th, the finance ministry has directed all PSU bank chief's to take active and precautionary steps to prevent such scams.

Meanwhile, both Modi and Choksi are summoned under the Prevention of Money Laundering Act (PMLA) and asked to depose within a week's time.

While Modi runs the jewellery brand chain under his name, Choksi is the promoter of Gitanjali Gems.

The Enforcement Directorate had registered a PMLA case against them and others based on a CBI FIR which was the result of a PNB complaint. 

Earlier on Friday, Interpol issued a diffusion notice to locate billionaire jewellery designer Modi and his family members in connection to PNB fraud case. 

It was reported that Nirav Modi, his wife Ami, his brother Nishal and business partner Mehul Choksi fled the country in the first week of January.