The skeletons continue to tumble out of the closet of Nirav Modi and his associates in the Rs 11,360-crore Punjab National Bank case. One of the latest among these is last year's Income Tax Department report on Firestar Diamond International (owned by Modi), an exclusive copy of which is in Firstpost's possession.
According to the report, "Nirav Modi Group is accepting 'On Money/Cash' customers against sale of jewellery/diamonds which is over and above the sale consideration recorded in the books of account. During the search action, various evidences in form of digital data and statement of key employees were gathered. The employees of Nirav Modi Group involved at each layer were examined and in their statements recorded under oath that they have admitted the acceptance of on money/cash receipts against sale of diamond jewellery by the group. All the evidence gathered has been confronted to Mr Nirav Modi and he has not been able to satisfactorily explain... A total of Rs 158.49 crore of 'on-money' was received by the group." (italics added)
Further, the report notes, "During the search proceedings, it is found that Mr Nirav Modi is settlor and beneficiary of a foreign trust namely Monte Cristo Trust in Jersey. The original Trust deed seized during search action from locker of an employee."
The report also covers stock discrepancy — "the difference in stock valuation of SEZ units has been worked out by DDIT in the report to the tune of Rs 1216,30,93,391/- (Rs 1,216 crore) in FY 2017-17 which represents the unaccounted sale of imported diamonds diverted to domestic markets", bogus purchases — "Mumbai Gems and Diamonds director Mr Vijay Rathod stated that the company is engaged in provideing accommodation entries on commission basis and is not doing any genuine business" — and massive employee bonuses — "(B)onus to employees working in Firestar Diamond Ltd, Russia is being paid in cash of about Rs 60 lakh per annum" — by the group.
Also contained within the report is a list of bank accounts and properties belonging to Nirav Modi that have been attached.
Updated Date: Feb 20, 2018 11:16 AM