Geodesic Ltd and its top officials are now under the scanner of the Economic Offences Wing of the Mumbai Police, Enforcement Directorate and the Income Tax department for tax evasion and alleged siphoning and laundering of $125 million (Rs 812 crore).
Modi and Choksi are wanted by multiple investigating agencies after State-owned Punjab National Bank complained against their companies, saying it had been cheated of Rs 13,600 crore through fraudulent letters of undertaking and foreign letters of credit.
According to sources, while the stock value of gold and diamond jewellery at the retail stores of Gitanjali Group was not inflated, the probe agency has found maximum inflation of the stock kept in factories and safe rooms of the group in Mumbai.
The probe agencies have found that the Dubai subsidiary, in an email on October 6, 2015, said the consignment of coloured gems received by them were of such “low quality” that the “stones release colour and the bag inside which stones are kept turns red”.
According to sources, the Enforcement Directorate found that Mehul Choksi used four Hong Kong-based firms to allegedly divert about Rs 3,500 crore of the outstanding LoU and FLC funds to related companies in USA, UK, UAE, Thailand, China, Japan, Italy and Belgium.
Vijay Mallya said he “will continue to make every effort to settle with the public sector banks” adding that the bulk of the claims of the banks were on account of interest and that he was being made a “poster boy” of bank default and a “lightning rod of public anger”.
According to the ordinance, a Fugitive Economic Offender is a person who has an arrest warrant issued in respect of a scheduled offence and who leaves or has left India so as to avoid criminal prosecution, or refuses to return to India to face criminal prosecution.
During the financial year 2017-18, the number of ATMs in the state has declined marginally from a year ago, as the total number of ATMs in the country has also declined slightly to 2,22,066 from 2,22,318 in the same period.
PNB fraud case: Nirav Modi, his wife Ami (a US citizen), brother Neeshal (a Belgian national) and uncle Mehul Choksi, promoter of the Gitanjali Group, fled the country in January, weeks before the scam broke. While Nirav Modi is in the UK, Choksi is learnt to be in the US.