Latest news with #LoUs
India Today
05-07-2025
- Business
- India Today
Nehal Modi was in US jail for 3 years before arrest in PNB scam: Sources
Nehal Modi, the younger brother of fugitive diamond merchant Nirav Modi, arrested in connection with the multi-crore Punjab National Bank (PNB) scam, was released from a US jail after serving a three-year jail term, sources told India Today said Nehal Modi, a Belgian national, was arrested again on Friday for the offences he had committed in India and after Interpol had issued a Red Notice against Modi, who was taken into custody on Friday, faces two charges - money laundering under Section 3 of PMLA and criminal conspiracy and destruction of evidence, according to a US prosecution complaint. Nirav Modi, his uncle Mehul Choksi, Nehal Modi and others are wanted by the CBI and the Enforcement Directorate (ED) for cheating PNB of about Rs 13,500 crore in loans using fraudulent Letters of Undertaking (LoUs).While Nirav Modi's extradition has already been approved by the UK High Court, the process to bring him to India is being delayed due to him filing numerous appeals. Nirav, who is in a London jail, was declared a fugitive economic offender in this year, the Belgian government said Choksi, 65, was arrested in Antwerp following an extradition request by India. Choksi fled India in 2018 and has been living in Antigua and Barbuda as a citizen since MODI'S CRIMINAL ACTIVITIESAccording to investigative agencies, Nehal Modi knowingly and intentionally participated in assisting the concealment of proceeds of crime, destroying the Modi was personally overseeing all the accounts, records were eliminated and was influencing the employees and participated in destroying the evidence in respect of the money trail. He also dealt with the proceeds of the crime by taking 50 kgs of gold from Firestar Diamond FZE, Dubai after the initiation of an investigation into this the scam broke out, Nehal Modi dealt with the proceeds of the crime in respect of the Nirav Modi case and took away diamonds having a value of USD 6 million and 150 boxes of pearls from Hong Kong and cash of AED 3.5 million and 50 kgs of gold, along with Mihir Bhansali, another coconspirator from Modi destroyed digital evidence (mobile phones and servers) pertaining to the Nirav Modi case in Dubai. He intimidated the witnesses and sent them to Cairo and their passports were taken over at his were forced to sign some false papers in Cairo at his insistence. In one case, a witness was offered Rs 20 lakh by Nehal Modi in lieu of tendering false testimony before the judicial authorities of Indian government officially demanded the extradition of Nehal Modi, on which action has now been taken by the US. It is expected that the process of bringing Nehal Modi to India will begin soon.- Ends
India Today
05-07-2025
- Business
- India Today
Nehal Modi, brother of fugitive Nirav Modi, arrested in US in bank fraud case
Nehal Modi, brother of fugitive diamantaire Nirav Modi, has been arrested in the United States in connection with the multi-crore Punjab National Bank (PNB) scam in a major diplomatic win for India following its extradition to the US Department of Justice, Nehal Modi, a Belgian national, was taken into custody on July per the US prosecution complaint, Nehal faces two charges - money laundering under Section 3 of PMLA and criminal conspiracy and destruction of Nirav Modi, his uncle Mehul Choksi, Nehal and others are wanted by the CBI and the Enforcement Directorate (ED) for cheating PNB of about Rs 13,500 crore in loans using fraudulent Letters of Undertaking (LoUs).While Nirav Modi's extradition has already been approved by the UK High Court, the process to bring him to India is being delayed due to him filing numerous appeals. Nirav, who is in a London jail, was declared a fugitive economic offender in this year, the Belgian government said Choksi, 65, was arrested in Antwerp following an extradition request by India. Choksi fled India in 2018 and has been living in Antigua and Barbuda as a citizen since AGAINST NEHAL MODIInvestigations by the ED and CBI have revealed that Nehal played a key role in laundering proceeds of crime on behalf of Nirav Modi, who is also facing extradition from the is alleged to have assisted in concealing and transferring large amounts of illicit funds through a web of shell companies and complex foreign transactions in a bid to conceal the proceeds of the next date of hearing in the extradition proceedings is scheduled for July 17. Nehal is likely to apply for bail during this hearing. The US prosecution said that it would oppose his plea.- Ends
India Today
06-06-2025
- Business
- India Today
Sebi issues attachment order against Mehul Choksi for non-payment of penalties
The Securities and Exchange Board of India (Sebi) on Friday issued a recovery attachment order against absconding diamond merchant Mehul Choksi, who is a co-accused in the Rs 13,850-crore Punjab National Bank (PNB) fraud case, which is one of the biggest banking scams in India's recovery officer has been assigned the task of taking action on the attachment order, issued on June 4 by the financial agency's Mumbai action against the fugitive diamond merchant had been initiated due to the non-payment of a Rs 1.5 crore penalty imposed by Sebi on January 31, 2022. Sebi went ahead with the attachment as it believed that Choksi might dispose of funds, thus obstructing the recovery of the total dues amounting to Rs 2.10 who has been wanted in India since 2018, was arrested in Belgium in April. His arrest, which took place on April 12, was made by Belgian authorities after a request from Indian agencies like the Central Bureau of Investigation (CBI) and the Enforcement Directorate (ED).He was detained in a hospital in Belgium, where he was said to be receiving medical PNB SCAMThe Rs 13,850-crore PNB scam involved Choksi and his nephew Nirav Modi, who is currently languishing in a jail in the UK and is soon to be extradited to they were able to take loans from foreign banks using Letters of Undertaking (LoUs) issued by PNB's Brady House branch in Mumbai. An LoU is a bank guarantee which allows customers to get short-term credit from overseas 2011 to 2018, Choksi, Modi and their companies used these LoUs without following the normal procedures. Some bank officials were involved and allowed the LoUs to be issued without entering them into the bank's main system. This helped the fraud go unnoticed for funds, which were shown as being used for importing goods, were mostly never returned. Instead, new LoUs were taken to repay the earlier ones, and the money was used for business and personal total value of the fraud reached around Rs 13,850 crore. Out of this, Nirav Modi's companies were linked to Rs 6,498 crore and Choksi's Gitanjali Group to Rs 6,097 crore. The remaining amount includes interest and other Watch IN THIS STORY#Mumbai Indians
Time of India
06-06-2025
- Business
- Time of India
Freeze order escalates: Sebi locks Mehul Choksi's accounts to recover Rs 2.1 crore; insider trading case triggered crackdown
In a bid to enforce a penalty issued over insider trading violations, Sebi has initiated recovery proceedings against fugitive businessman Mehul Choksi by freezing his financial assets, including bank, demat, and mutual fund accounts. The markets regulator issued attachment instructions on June 4 after Choksi failed to clear dues worth Rs 2.1 crore, despite a demand notice served on May 15. The dues stem from a January 2022 Sebi order that found Choksi guilty of sharing unpublished price-sensitive information in connection with trading in Gitanjali Gems shares. According to PTI, Choksi had been warned of asset seizure if the amount wasn't paid within 15 days. The outstanding sum includes a Rs 1.5 crore fine and Rs 60 lakh in interest. Choksi, who was then the chairman, managing director, and part of the promoter group of Gitanjali Gems, is currently facing extradition proceedings after being arrested in Belgium earlier this year. He had been residing in Antigua since fleeing India in 2018 following the Punjab National Bank (PNB) loan fraud, which allegedly involved over Rs 14,000 crore. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Giao dịch CFD với công nghệ và tốc độ tốt hơn IC Markets Đăng ký Undo Nirav Modi, his nephew, is also a key accused in the case and is jailed in the UK. Sebi's attachment order directed banks, depositories CDSL and NSDL, and mutual funds to prohibit any debits from Choksi's accounts, while allowing credits. Lockers and all associated accounts have also been brought under attachment. The regulator said it acted to prevent any delay or obstruction in realising the dues. In its earlier order, Sebi had found that Choksi passed sensitive company information to Rakesh Girdharlal Gajera, who offloaded his 5.75% stake in Gitanjali Gems in December 2017 to avoid losses ahead of the public fallout from fraudulent letters of undertaking (LoUs) issued by Gitanjali Group-linked entities. 'Noticee no. 1 (Choksi) was found to have communicated UPSI to Noticee no. 2 (Gajera) without any underlying legal obligation or any legitimate purpose,' the Sebi order stated. The regulator had barred Choksi from the securities market for one year and declared that both he and Gajera had violated insider trading norms under the Prohibition of Insider Trading (PIT) rules. In a separate matter, Sebi had also issued a notice in May 2023 directing Choksi to pay Rs 5.35 crore over fraudulent trading practices involving Gitanjali Gems. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
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Business Standard
19-05-2025
- Business
- Business Standard
Sebi orders Mehul Choksi to pay ₹2.1 crore for insider trading breach
India's market regulator, the Securities and Exchange Board of India (Sebi), has issued a notice to Mehul Choksi, asking him to pay ₹2.1 crore for violating insider trading rules related to Gitanjali Gems Ltd, according to a PTI report. Sebi warned that if the amount is not paid within 15 days, it will initiate proceedings to seize his properties and bank accounts. The notice, dated 15 May, includes a penalty of ₹1.5 crore and interest of ₹60 lakh. Sebi stated that if Choksi fails to comply, the recovery will be made by attaching and selling his movable and immovable assets. His bank accounts may also be frozen, and he could face arrest. This action follows Choksi's failure to pay a fine imposed in January 2022. The PNB scam Choksi, who was chairman, managing director, and promoter of Gitanjali Gems, is also the maternal uncle of Nirav Modi. Both men are accused of defrauding Punjab National Bank (PNB) of over ₹14,000 crore. They fled India after the scam came to light in early 2018. Choksi has been living in Antigua since 2018. Last year, he travelled to Belgium citing medical treatment. He was arrested there last month following an extradition request from Indian authorities. Nirav Modi was arrested by Scotland Yard in March 2019 and remains in custody in the UK. Insider trading case In its January 2022 order, Sebi found that Choksi had passed on confidential company information—classified as Unpublished Price Sensitive Information (UPSI)—to Rakesh Girdharlal Gajera. Gajera subsequently sold his 5.75 per cent stake in Gitanjali Gems in December 2017, just before news about fraudulent Letters of Undertaking (LoUs) became public. These LoUs were fraudulently issued for companies under the Gitanjali Group, including Gitanjali Gems Ltd. 'Noticee No. 1, Choksi, was found to have communicated UPSI to Noticee No. 2 (Gajera) without any underlying legal obligation or legitimate purpose,' Sebi said in its final order. Sebi concluded that both Choksi and Gajera violated the Prohibition of Insider Trading (PIT) regulations. This is not the first time Sebi has taken action against Choksi. In May 2023, the regulator issued a separate notice demanding ₹5.35 crore for alleged fraudulent trading in Gitanjali Gems shares. Another fraud case and non-bailable warrant Separately, earlier this month, a Mumbai court issued a non-bailable warrant against Choksi in a 2022 bank fraud case, where he and others are accused of defrauding a consortium of banks—Canara Bank and Bank of Maharashtra—of ₹55.27 crore. The Central Bureau of Investigation (CBI) registered a case in July 2022 after a complaint from a senior Canara Bank official. The case involves Bezel Jewellery (India) Private Limited, where Choksi and three others served as directors. They allegedly conducted fake transactions and defaulted on repayments, diverting and misusing funds.
