Choksi diverted over Rs 3,250-cr to foreign shores, sold jewellery at inflated prices: ED

Agencies
September 12, 2018

New Delhi, Sept 12: An ED investigation has found that absconding jeweller Mehul Choksi diverted over Rs 3,250 crore funds, allegedly defrauded from a PNB branch in Mumbai, to foreign shores and he was in business of "highly inflating" prices of precious metals sold from his outlets. The businessman has rejected the charges as "baseless".

The agency, which is probing the $2 billion (about Rs 13,000 crore) alleged bank fraud that also involved his nephew Nirav Modi, said Choksi was "using several dummy companies" to rotate funds and to divert money for his personal use.

In its chargesheet, the Enforcement Directorate has said Choksi allegedly diverted $56.12 million (about Rs 400 crore) of loan funds to Nirav Modi and about $50 million (Rs 360 crore approx) to Modi's father Deepak Modi.

"Choksi was using several dummy companies for rotating his transactions. Under this arrangement, origin of the sale transactions and final destination used to be any of the Gitanjali group of companies.

"For in-between transactions, dummy companies were used for layering purpose wherein only sale/purchase bills were created and no movement of goods used to take place. He has been doing this to project inflated turnover to avail higher banking facility," the Enforcement Directorate (ED) has said in its charge sheet filed against the absconding businessman who is stated to be in the caribbean nation of Antigua now.

Choksi, talking to some media organisations, has termed ED's allegations as "false and baseless". He has also alleged that this properties have been attached by the central probe agency "illegally."

The agency said it has detected that funds to the tune of Rs 3,257.54 crore, that were obtained from PNB's Brady House branch in Mumbai, were "diverted" to countries like Thailand, the US, Belgium, UAE, Italy, Japan and Hong Kong and were deposited in "group entity" firms.

These funds, it said in its probe report accessed by PTI, were "fraudulently obtained" by Choksi and his firms from the PNB by way of Letters of Undertaking (LoUs) and Foreign Letters of Credit (FLCs).

It also accused Choksi of grossly over-valuing the gems and jewellery that he sold.

"Choksi used to fix the rate/value of the goods without applying economic rationale. The goods in question were either low value or poor quality and was not commensurate with the price/value fixed by him," the ED said.

The charge sheet further said these charges have been "confirmed" in the statement given to it under the Prevention of Money Laundering Act (PMLA), by Vice President (banking operations) of Choksi's Gitanjali Group, Vipul Chitalia.

"It is further confirmed from the goods seized at Hyderabad whose declared value was found to be highly inflated and in some cases the actual value of these goods is even less than 3 percent of the declared value," the ED said.

The agency alleged the proceeds of crime of money laundering in this case involving Choksi were "partly remitted back to Gitanjali group of companies" in India in guise of export-import transactions for settling earlier credit liabilities.

"The proceeds of crime has also been used for making payment against the villa booked by Choksi in UAE and for transferring preferential shares of MS Bezel Jewellery (India) Pvt Ltd to Ms Al Burj Diamond and Jewellery FZE, UAE...," the charge sheet said.

It also charged Choski of conducting illegal 'air to air' export using the Gitanjali group, where consignments exported from India to Hong Kong and back were routed to Dubai but were not cleared through customs at the UAE airport and were exported to Hong Kong or India.

The ED report also said that "fraudulent export and import" was being done by Choksi's firms and there was "no manufacturing activity" in any of the overseas companies situated at Hong Kong and the UAE and only bogus business and sale amongst group companies were carried out.

"The export/import was also not genuine and was just rotational transactions. The jewellery exported from India was dismantled and diamonds/pearls were taken out of it," the agency charged.

The ED said, "It is apparent that the funds acquired by fraudulent means were siphoned off within the country as well as to the overseas dummy companies owned and controlled by Mehul Choksi himself."

"The dummy directors and others were mechanically transferring the goods and monies as per the directions of Choksi without any economic rationale and logic," the agency alleged.

The businessman has been also charged by the CBI for alleged corruption in this case and the ED has sought an Interpol arrest warrant against him apart from approaching a Mumbai court to get him declared a fugitive economic offender under a new law by the same name.

India has also recently moved for his extradition from Antigua.

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News Network
March 19,2020

Mar 19: Amidst spiralling cases of COVID-19 in the country, Union Minister of State for Health and Family Welfare Ashwini Kumar Choubey on Thursday advocated "absorbing sunlight" as a possible precaution against coronavirus that has claimed over 8,000 lives globally.

Speaking to reporters outside parliament, Choubey said 10-15 minutes in the sun would build immunity as sunlight provides Vitamin D.

"From 11 am to 2 pm the sun is shining brightly. We should spend at least 10-15 minutes to absorb sunlight so that we get vitamin D which improves the immunity of our body and also kills such viruses. All should be aware of (this fact)," he said when asked about the spread of coronavirus.

COVID-19 cases in India climbed to 169 on Thursday after 18 fresh cases were reported from various parts of the country, according to the Union health ministry.

The cases include 25 foreign nationals -- 17 from Italy, 3 from the Philippines, two from the UK, one each belonging to Canada, Indonesia and Singapore.

The figure also includes three deaths reported from Delhi, Karnataka and Maharashtra so far.

According to the World Health Organisation, the novel coronavirus has killed over 8,000 people globally and infected more than two lakh.

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News Network
April 2,2020

Thiruvananthapuram, Apr 2: The Centre's decision to accept contributions from abroad to PM-CARES fund for fighting COVID-19 has prompted social media users to take potshots at it as Kerala was not allowed to receive foreign aid after the devastating floods in 2018.

Senior Congress leader Sashi Tharoor said accepting relief for coronavirus pandemic does not affect "one's ego", while other reactions varied from taking a dig saying 'Vikas has reached new heights" to asking where is the country's pride.

Government sources have said a decision had been taken to accept contributions from abroad to the Prime Minister's Citizen Assistance and Relief in Emergency Situations Fund (PM CARES) to deal with the coronavirus pandemic.

The Narendra Modi government had earlier turned away foreign aid, including a reported Rs 700 crore donation from the UAE, to help Kerala during the floods that devastated the southern state, while "deeply appreciating" the offers from various nations then.

Over 480 people were killed, several had gone missing during the worst floods in a century that also rendered lakhs homeless and dealt a severe blow to the state's economy.

"Flood relief for Kerala hurts ones ego. Pandemic relief doesnt. Go figure! #PMCARES!" tweeted Tharoor, who represents Thiruvananthapuram in Lok Sabha.

Another twiterratti reacted to the Centre's latest move, saying: "Wow.. a nation that built 3,000 crore statue is B3GG!NG now? Sad!"

"Vikas has reached new heights... Where are the proud Modi Bhakts?" another wrote.

"Thanks but no, says India to foreign aid for Kerala", another social media user tweeted, tagging a 2018 news report on MEA Spokesperson saying the government was committed to meeting the requirements for relief and rehabilitation in Kerala through domestic efforts.

"Pandemic is unprecedented, India has taken a decision to accept foreign donations to the PM fund. But....", "5 Trillion begging bowl", "Where did the 'National Pride' go now?" another tweet asked.

The Centre's present decision marks a shift from its earlier position of not accepting foreign donations to deal with domestic crisis.

"In view of the interest expressed to contribute to Government's efforts, as well as keeping in mind the unprecedented nature of the pandemic, contributions to the Trust can be done by individuals and organisations, both in India and abroad," a government source has said.

It said the fund was set up following spontaneous requests from India and abroad for making generous contributions to support the government in its fight against COVID-19.

On Saturday, Modi had announced setting up of the PM CARES fund.

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News Network
May 27,2020

Muzaffarpur, May 27: A toddler's vain attempt to wake up his dead mother from eternal sleep on a railway platform in Bihar's Muzaffarpur on Wednesday presented the most poignant picture of the massive migrant tragedy unfolding across several states.

A video tweeted by Sanjay Yadav, an aide to RJD leader Tejashwi Yadav, shows the child walking unsteadily up to his mother's body, tugging at the blanket placed over her, and when failing to wake her up, covering his own head with it.

As the mother still lay still, he wobbles away from her, announcements continuing in the background about the arrival and departure of trains that would bring in tens of thousands of people in a rush to get away from hunger and hardship they face in large cities that could sustain them no more.

"This small child doesn't know that the bedsheet with which he is playing is the shroud of his mother who has gone into eternal sleep. This mother died of hunger and thirst after being on a train for four days. Who is responsible for these deaths on trains? Shouldn't the opposition ask uncomfortable questions?" tweeted Yadav.

However, police had a different story to tell.

Ramakant Upadhyay, the Dy SP of the Government Railway Police in Muzaffarpur, said the incident occurred on May 25 when the migrant woman was on way to Muzaffarpur from Ahmedabad by a Shramik Special train.

He told reporters the woman, who was accompanied by her sister and brother-in-law, had died on the Madhubani bound train.

"My sister-in-law died suddenly on the train. We did not face any problem getting food or water," the officer said, quoting the deceased's brother-in-law who he did not name.

He said on getting information, poice brought down the body and sent it for postmortem.

Citing the brother-in-law of the deceased, Upadhyay said she was aged 35 years and was undergoing treatment for "some disease" for the last one year in Ahmedabad. "She was also mentally unstable," he said.

When persistently queried about the cause of death, he said,"Only doctors can tell".

A massive exodus of migrant workers is on in several parts of the country, unprecedented in magnitude since Partition.

The humanitarian crisis still unfolding on highways and railway platforms has shone light on disturbing tales of entire families walking hundreds of kilometres with little children on foot in a seemingly endless march to escape hunger.

People have been found travelling on trucks and in the hollow of concrete mixing plants, and in many cases, dying from hunger and exhaustion before reaching their destinations.

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