Diamond is now fraudster's best friend! Nexus under scanner
NEWDELHI: Diamonds may have been long known as a girl's best friend, but fraudsters seem to be the new paramours of this glitzy substance and multiple regulators are probing this nexus after a state-run bank got defrauded of USD 1.8 billion by designer jeweller Nirav Modi.
Capital markets watchdog Sebi is looking into the trade details and various suspected violations by Modi-linked entities, including another jewellery major Gitanjali Gems of Mehul Choksi. Also under the scanner is a suspected nexus between the diamond traders and stock market brokers, a senior official said. The banking regulator is conducting supervisory assessment of Punjab National Bank, while all banks have beefed up their vigil on all clients linked to diamond and jewellery trade.
Besides, the Corporate Affairs Ministry is looking into the filings of all registered companies and directors associated with Modi and Choksi, which run into dozens. Besides, the ministry has identified 150 shell companies for investigations.