New Delhi, Sep 10: Fugitive diamond jeweller, Nirav Modi's firm A Jaffe Inc along with a shadow entity controlled by his sister Purvi Modi and a British Virgin Islands firm linked to Deepak Modi (father) had allegedly routed at least Rs 576 crore obtained fraudulently.
An examiner appointed by a bankruptcy court in the United States that the amount was moved through Letters of Undertaking in India to Delaware firm Twin Fields Investments Ltd.
The report by US examiner John Carney found that at least Rs 300 crore of the money received by Twin Fields Investment was ploughed into a US based retain jewellery company, Bailey, Banks and Biddle which was acquired by Nirav Modi in 2009-10.
Along with A Jaffe, two other firms belonging to Nirav Modi, Firestar Diamond Inc and Fantasy Inc have filed for bankruptcy in the US.
A Jaffe, Firestar and Fantasy "were directly involved in the transactions" pertaining to the alleged siphoning of funds gathered through the PNB LoUs, the report said.
Nirav Modi used at least Rs 21 crore from Firestar Diamond Inc to pay for a real estate transaction for the "benefit" of his family. Apart from this, in 2012, at least 80 per cent of A Jaffe sales were to shadow entities or shell companies in loose diamonds, which was "contrary" to the business of the firm. According to Carney's report, these shadow entities were the primary recipients of the LoU money from PNB, the examiner's report further added.
At least Rs 28 crore from Firestar Diamond Inc was transferred to Hong Kong based Auragem Company and UAE based Tri Color Gems FZE and Pacific Diamonds FZE between September 2015 and March 2016 for repayment of outstanding LoUs taken by the Indian firms of Modi from PNB. Further the report added that Firestar Diamonds received at least Rs 15 crore of LoU money from these firms in 2013.