Monday, 10 December, 2018

Gitanjali Gems down 10% on report of closure of company

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Nellie Chapman | 22 February, 2018, 17:18

Three companies of the Gitanjali Group were also named in the second CBI FIR for allegedly defrauding PNB of Rs 4,886 crore.

Mr. Choksi is a relative of Nirav Modi, who is allegedly involved in the Punjab National Bank (PNB) fraud. The total value of gems and gold jewellery seized by the ED stands at Rs 5,736 crore.

Fresh summons was issued against diamantaire Nirav Modi, after he failed to appear and depose before the Enforcement Directorate (ED) today, official sources said.

An ED official told IANS that the agency has also carried out searches at four firms which it suspected were shell companies.

Modi was summoned by the ED under the Prevention of Money Laundering Act (PMLA).

Commenting on the raids, an ED official said that out of sealed mutual funds and shares, documents worth Rs 86.72 crore belonged to Mehul Choksi and his group, and the rest are owned by the Nirav Modi group.

The Central Bureau of Investigation was also probing the case. Both Modi and Choksi are said to have left the country before the cases were lodged against them. The funds - ostensibly raised for the purchase and sale of diamonds - were not used for that objective, PNB alleged. The CBI had received the complaint from the PNB on January 28 and a case was registered in the case on January 31.

Shell companies are defined as those firms which are set up by nominal paid-up capital, high reserves and surplus on account of receipt of high share premium, investment in unlisted companies, no dividend income, high cash in hand, private companies as majority shareholders, low turnover and operating income, nominal expenses, nominal statutory payments and stock in trade and minimum fixed asset.