The Enforcement Directorate (ED) has arrested vice president of Firestar Diamond Shyam Wadhwa in Nirav Modi-Punjab National Bank (PNB) fraud case.
Sources told CNBC-TV18 that ED believes Wadhwa to be instrumental in setting up of shell companies used by Modi to siphon off the money.
Firestar Diamond is a company owned by Nirav Modi, the billionaire jeweller at the centre of a $2-billion fraud case in India.
With this arrest, authorities have stepped up investigation into the case, including a raid recently of Modi’s former law firm.
Modi and his uncle Mehul Choksi, owner of Gitanjali Gems Ltd, are suspected to have colluded with bank officials at Punjab National Bank (PNB) to obtain unauthorised loans over a six-year period.
PNB has revealed that the amount of those fraudulent transactions could rise by $204 million to nearly $2 billion.
Separately, the Central Bureau of Investigation has arrested Vipul Ambani, president (finance) of Nirav Modi’s Fire Star Diamond, Kavita Mankikar (executive assistant and authorised signatory of three firms—Diamond R US, Stellar Diamond, Solar Exports), Arjun Patil (senior executive, Firestar Group) and Rajesh Jindal, the then head of the Brady House branch of PNB.
(with inputs from Reuters)
First Published: IST