ED searches multiple locations in Delhi over cyber fraud case involving Chinese national
The central agency has filed a criminal case under the Prevention of Money Laundering Act (PMLA) to investigate the "fraud".
Five premises in Delhi are being searched in the case against a company named Xindai Technologies Pvt Ltd where it is alleged that general public was cheated in the name of investments and funds were laundered using full fledged money changers (FFMC), the sources said.
The role of a Chinese national and some others is being investigated in this case where the proceeds of crime are estimated to be about ₹903 crore, they said.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Mint
20 minutes ago
- Mint
Meet Sanjay Bhandari: Declared fugitive economic offender under FEOA, who fled to UK in 2016
A special Delhi court on Saturday, while hearing a plea by the Enforcement Directorate (ED), declared data-vars-page-type="story" data-vars-link-type="Manual" data-vars-anchor-text="UK-based arms consultant Sanjay Bhandari">UK-based arms consultant Sanjay Bhandari a fugitive economic offender under the Fugitive Economic Offenders Act, 2018. In their plea, the ED accused Sanjay Bhandari of money laundering and stated that he 'absconded' to the United Kingdom in 2016 following several investigative agencies began scrutinising his activities. After this, ED filed a criminal case of money laundering against Bhandari and others in February 2017. The Delhi Court ruling comes at a time when a UK court had turned down India's plea seeking his extradition. An observation in the UK high court's decision stated, 'Bhandari would be at real risk of extortion, torture or violence in Tihar jail, from other prisoners or prison officials." In 2016, Bhandari "absconded" to the United Kingdom via Nepal and an Interpol red notice was issued against him in October 2017. The ED and other government agencies sent two extradition requests against the fugitive businessman and it were certified by the then UK home secretary Priti Patel in June 2020. Bhandari was arrested by British authorities on 15 July 2020, but was released on bail pending extradition proceedings. In 2022, a Westminster court subsequently ordered his extradition to India. Bhandari then challenged this ruling in High Court, and on 28 February 2025, the UK high court discharged him in the extradition request. The court on 4 April even rejected India's plea for his extradition. According to the ED and the Income Tax department, Bhandari had undisclosed foreign income worth ₹ 655 crore, on which he evaded tax worth ₹ 196 crore, reported Hindustan Times. Also, Bhandari has been under CBI probe since 2019 on charges of corruption in a ₹ 2,985-crore deal to procure 75 PC-7 trainer aircraft from Swiss plane maker Pilatus Aircraft. Between 2009 and 2016, Bhandari allegedly deposited huge amounts of money in bank accounts of overseas shell companies and also invested in properties in the UAE and the UK. The CBI also charged him with allegedly laundering money for properties reportedly linked to former Congress president Sonia Gandhi's son-in-law Robert Vadra in London. In this, NRI businessman C C Thampi was arrested by ED in January 2020.
Hindustan Times
an hour ago
- Hindustan Times
Fugitive diamantaire Nirav Modi's brother Nehal arrested in US on India's request
New Delhi: Fugitive diamantaire Nirav Modi's brother, Nehal Modi, has been arrested in the United States based on an extradition request of the Enforcement Directorate (ED) and the Central Bureau of Investigation (CBI), a development Indian officials described as 'significant'. Nehal Modi Nehal Deepak Modi, 46, played a key role in the ₹6,498 crore Punjab National Bank (PNB) swindle in which his elder brother, Nirav Modi, is currently lodged at a UK prison and is facing extradition. Officials familiar with the development said that Nehal, a Belgian citizen, was arrested by the U.S authorities on Friday, a day after he was released from a prison in New York, where had been serving sentence since July 2022 in a $2.6 million diamond fraud with a U.S firm. A U.S Supreme Court jury sentenced Nehal Modi to 3-9 years in a grand larceny in the first degree case. He was accused of fraudulently obtaining diamonds from Manhattan-based wholesale company, LLD Diamonds USA, LLC ('LLD'). He had made false representations regarding a purported deal with Costco Wholesale Corporation to obtain more than $2.6 million worth of diamonds from LLD, also known as Lev Leviev Diamonds, between March and August 2015, according to the July 29, 2022 indictment seen by HT. 'The United States Department of Justice informed us that Nehal Modi has been arrested on July 4, a day after he was released from the prison, based on our extradition request (both CBI and ED's). An extradition request was sent in 2022 and for the past one and a half months, we were providing various clarifications to the American authorities and they finally arrested him,' said an ED officer, who didn't want to be named. 'It's a significant development because all three key perpetrators of the PNB case - Nirav Modi, Mehul Choksi and Nehal Modi are now lodged in prisons in the UK, Belgium and the US, respectively, based on efforts and prosecutable evidence for extradition provided by Indian agencies,' the officer added. While Nirav Modi was arrested in London in 2019, Mehul Choksi was taken into custody in Antwerp in April this year. As per the complaint filed by the U.S prosecutors, extradition proceedings are being pursued on two counts: one count of money laundering under Section 3 of the Prevention of Money Laundering Act (PMLA), 2002, and one count of criminal conspiracy under Sections 120-B and 201 (destruction of evidence) of the Indian Penal Code (IPC), said a second officer. The next date of hearing on extradition is July 17, when Nehal may apply for bail which U.S prosecutors have assured Indian officials they will oppose, he said. Wanted since 2018, when the PNB swindle came to the light, Nehal Modi was earlier said to be based in Belgium and then later moved to the US. An Interpol red notice was issued against him in July 2019 based on ED's request. 'He played a key role in laundering proceeds of crime on behalf of Nirav Modi, who is also facing extradition from the UK. He assisted in concealing and transferring large sums of illicit funds through a web of shell companies and overseas transactions, in violation of Indian laws,' said the second officer. In the PNB case, in which Nirav Modi swindled ₹6,498 crore, ED has already traced proceeds of crime worth ₹2,626 crore in India and abroad. Officials said charge sheets have been filed against Nehal in May 2018 and February 2019. It has been alleged by the agencies that Nehal Modi helped Nirav in destroying the evidence after the PNB scandal broke out in January 2018 as well as launder money on his behalf. Nehal, according to the ED officer cited above, was looking after the affairs of companies - Twin Fields Investments Limited, Bailey Bank and Biddle for Nirav Modi. 'Both these companies had received around USD 50 million from dummy companies of Nirav Modi which in turn received this fund from the fraud committed on PNB. For Nirav Modi, he became the protector and investment advisor of 'The Ithaca Trust'. This trust got the tainted funds to the tune of USD 30 million after extensive layering and two immovable properties have been purchased in USA from these tainted funds,' said the ED officer. After CBI and ED started scanning their offices abroad with the help of international agencies, Nehal dealt with the proceeds of crime and took away diamonds having value of US dollars 6 million and 150 boxes of pearls from Hong Kong and cash of 3.5 Million dirham and 50 Kg gold from Dubai, according to a statement issued by ED in 2019. Nehal also arranged the escape of Nirav's trusted man – Mihir Bhansali from Dubai and booked tickets of several dummy directors for Cairo so that Indian agencies would not catch them. He was also involved in destroying the digital evidence like mobile phones and the server pertaining to Nirav Modi's companies in Dubai. Nehal is also accused of helping Mehul Choksi in laundering money. 'Nehal Modi was incharge of M/s Samuels Jewellers INC and Diamlink Inc. At his instance, these companies had received around USD 19 million of proceeds of crime in the guise of royalty, advances etc from Dubai based shell companies of Mehul Choksi,' ED said in 2019. 'Nehal Modi was personally overseeing that all the accounts, records were destroyed and was influencing the employees/witnesses in respect of money trail of the proceeds of crime in the case. He destroyed the digital evidence (Mobile Phones and Server) pertaining in Dubai. He intimidated the witnesses and sent them to Cairo and in Cairo, their passports were taken over at his instance. Witnesses have been forced to sign some false papers in Cairo at his instance and in one case, a witness has been offered ₹20,000,00 by himself (Nehal Modi) in lieu of tendering false testimony before the judicial authorities of Europe,' said a second ED officer. One of the co-accused sent to Cairo was Subhash Parab, who was brought by Indian authorities in April 2022 through extradition. 'When the case came to light in January 2018, Nehal Modi told Parab and other senior directors in the company to leave India as they may be questioned by Indian investigation agencies. He left for Cairo after Nehal arranged his travel and since then, agencies have been pursuing his extradition,' said a CBI officer.
India Gazette
an hour ago
- India Gazette
Nehal Modi arrested in US on request of CBI, ED
New Delhi [India], July 5 (ANI) Nehal Modi, the brother of fugitive diamond merchant Nirav Modi, has been arrested in the United States on the basis of an extradition request made by the Central Bureau of Investigation (CBI) and the Enforcement Directorate (ED), officials confirmed on Friday. The arrest marks a significant development in India's efforts to bring to justice individuals involved in the Rs 13,000 crore Punjab National Bank (PNB) fraud case. The United States Department of Justice has informed Indian authorities that Nehal Modi, brother of fugitive economic offender Nirav Modi, was arrested by U.S. authorities on July 4, 2025, the officials privy to the development told ANI. 'The arrest has been made pursuant to an extradition request jointly submitted by the Enforcement Directorate (ED) and the Central Bureau of Investigation (CBI),' said the officials. As per the complaint filed by the U.S. prosecution, extradition proceedings are being pursued on two counts: one count of money laundering under Section 3 of the Prevention of Money Laundering Act (PMLA), 2002, and one count of criminal conspiracy under Sections 120-B and 201 of the Indian Penal Code. Nehal Modi is wanted in India in connection with the multi-billion-dollar Punjab National Bank (PNB) fraud case, one of the largest banking scams in the country's history. Investigations by the ED and CBI have revealed that Nehal Modi played a key role in laundering proceeds of crime on behalf of Nirav Modi, who is also facing extradition from the UK. He is alleged to have assisted in concealing and transferring large sums of illicit funds through a web of shell companies and overseas transactions, in violation of Indian laws. The next date of hearing in the extradition proceedings is scheduled for July 17, 2025, when a status conference will be held. Officials further said that Nehal Modi may apply for bail during this hearing, which the U.S. prosecution has stated it will oppose. (ANI)
