Neeshal Modi, younger brother of Nirav Modi, the diamantaire accused of defrauding Punjab National Bank to the extent of Rs 13,578 crore, has written to the Enforcement Directorate (ED) offering to cooperate in the case and distancing himself from his brother’s actions.
Antwerp-based Neeshal has been charged by both the Central Bureau of Investigation (CBI) and the Enforcement Directorate (ED) in the PNB fraud case along with Nirav, their uncle Mehul Choksi and others. He has also shared with ED sleuths a forensic audit conducted by a Belgium-based independent auditing firm, Van Den Keybus Van Der Jeught, which certifies that all transactions of Firestar Diamond BVBA were authentic, genuine and with legitimate documentary evidence such as invoices and shipping papers. Firestar Diamond has been named by ED as a company used by Nirav to launder money. ED has also said in its charge sheet filed in May 2018 that Neeshal was involved in the appointment of dummy partners and was a signatory or a beneficiary in some Dubai-based dummy companies between 2011 and 2013. He was also the director of Firestar Diamond based in Belgium and that huge sums were transferred into this company from six Hong Kong-based companies.
In his letter, reviewed by HT, Neeshal said: “I am willing to fully cooperate with any investigation that your department is undertaking and help you in accordance with law. I am sincerely hoping that in order to achieve fruitful results in this case, your office will positively respond to my offer of full cooperation with an open mind and meet me in Antwerp so that I can clarify any doubts that you may have about this matter.”
Disassociating himself from Nirav, he added: “I have nothing to do with any of the alleged criminal activities of my brother, Nirav Modi. I had no knowledge whatsoever of any dealings that Nirav Modi may have had with any of the bank (s) for his business purposes including transactions in relation to the alleged LOUs (letters of undertaking).”
“There is nothing on record to even suggest that I was ever a party or privy to any meeting or transactions of Nirav Modi with the bank (s) or its officer (s). I had never visited any bank (s) nor had I ever met or communicated with any banking officials in relation to the business activities of Nirav Modi or for the issuance of the alleged LOUs or for any of his business activities.”
When contacted, Nirav’s lawyer Vijay Aggarwal refused to comment on the matter. Nirav is lodged at Wandsworth prison in south-west London while his extradition proceedings are pending.
Neeshal also claimed he didn’t have a clue of his brother’s alleged criminal acts until he saw it in the news. Asserting that he isn’t a beneficiary of any of Nirav Modi’s wealth, Neeshal said: “I have always received remuneration through my salary (as director of Firestar Diamond) and income generated from legitimate business, where I have always paid the taxes on this income to the Belgian tax department.”
An ED officer confirmed to HT that the agency has received a letter and the forensic audit from Neeshal but added that it doesn’t matter. “It doesn’t hold any value because he is an accused”. “If he is willing to cooperate, he should come to India,” added the officer, who asked not to be named. Neeshal has informed ED that several persons who owe money to Firestar Diamond are using the proceedings against the company as an excuse not to pay their dues
