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New York, Nehal Modi, the brother of fugitive jewellery merchant <keyword id="571991" type="PERSON" weightage="20" keywordseo="Nirav-Modi">Nirav Modi</keyword>, has been charged by a New York prosecutor in an alleged $2.6 million fraud carried out through a multilayered scheme to cheat one of the world's <keyword id="10464786" type="UNKNOWN" weightage="20" keywordseo="biggest-diamond-companies">biggest diamond companies</keyword>. Announcing the charges against Nehal Modi on Friday, the prosecutor, Cy Vance, said, "While diamonds maybe forever, this flawed scheme was not, and now Mr Modi will face the clarity of a <keyword id="297950" type="COMPANY" weightage="20" keywordseo="New-York-Supreme-Court">New York Supreme Court</keyword> indictment." Modi was charged in the state supreme court with "grand larceny in the first degree" for allegedly "fraudulently obtaining over $2.6 million worth of diamonds from a diamond wholesale company located in Manhattan," said Vance, who is the prosecutor for the city's Manhattan district. The crime of grand larceny in the first degree under <keyword id="357933" type="LOCATION" weightage="20" keywordseo="New-York-State">New York State</keyword> laws is theft involving more than $1 million and it carries a maximum penalty of 25 years in prison. According to the New York Post, Modi told the court he was not guilty of the charge and was released without bail. In a short video on the Post site, Modi is seen walking with a man who may be his lawyer in what appears to be the corridor of a court building. Asked about the case, he replied, "There's nothing about the case." Asked about the Interpol notice, the man accompanying him, said, "We are not discussing anything about the case, I told you that." Nehal Modi is wanted in India in connection with an alleged ₹13,500 crore (about $1.9 billion) fraud involving the Punjab National Bank, and at the request of India the Interpol has issued a Red Notice, which is a request to law enforcement worldwide to arrest him pending extradition. Under the judicial procedure in New York, the prosecutors first presented the case to a grand jury -- a panel of citizens -- to determine if there was a prima facie case to proceed with prosecution. The grand jury indicted him -- a finding that there were enough grounds to charge him. The alleged crime goes back to 2015 when Nehal Modi asked a company identified as <keyword id="10466697" type="COMPANY" weightage="20" keywordseo="lld-diamonds-usa">LLD Diamonds USA</keyword> to obtain over $2.6 million worth of diamonds with "false representations", some of which he pawned for loans and sold the rest as steeply discounted prices, the prosecution said in a statement. LLD Diamonds says on its website that it "is the world's largest privately held diamond manufacturer and cutting group -- entirely independent of external suppliers, having its own widespread sources of rough goods through ownerships in mines around the world." The prosecution said that in March 2015 Modi first asked the company to give him diamonds worth about $8,00,000 claiming they were to be shown for potential sale to a company identified as Costco Wholesale Corporation, a chain that gives price discounts to its customers who join as members. Modi then claimed that Costco agreed to buy the diamonds and LLD gave it to him on credit to be paid within 90 days, the prosecution said. But he pawned the diamonds to another company for a short-term loan and came back to LLD to get more diamonds, this time worth $1 million, claiming that Costco had agreed to buy them, according to the prosecution. He made some payments to LLD but used the major portion of the proceeds to for business and personal expenses and in order "to cover his fraud, Modi falsely claimed that he was he was having payment problems because of a "Costco fulfilment error," prosecutors said. In August, Modi returned to LLD "with the false claim" that Costco wanted to buy more diamonds and after picking them up, he pawned some of them and sold the rest to retailers at a "steep discount", according to the prosecution. By the time when LLD discovered the fraud and demanded payment or return of the diamonds, Modi had already pawned or sold off all the gems and spent most of the money, prosecutors said. LLD then filed a complaint with the Manhattan prosecutor's office. Vance asked others who may be "the victim of this type of theft" to call the financial fraud hotline of his office. SEE ALSO: <a href="https://www.businessinsider.in/stock-market/news/heres-what-analysts-say-if-you-should-subscribe-or-not-to-the-300-crore-ipo-of-antony-waste-handling-cell/articleshow/79790998.cms">Antony Waste Handling Cell ₹300-crore IPO opens today — these are the risks and opportunities</a> <a href="https://www.businessinsider.in/business/startups/news/the-founder-of-sugar-cosmetics-explains-how-the-startup-clocked-a-60-growth-in-sales-during-the-pandemic/articleshow/79832966.cms">The founder of SUGAR cosmetics explains how the startup clocked a 60% growth in sales during the pandemic</a> <a href="https://www.businessinsider.in/business/startups/news/pine-labs-valuation-crosses-2-billion-as-it-raises-fresh-funds-from-lone-pine-capital/articleshow/79833738.cms">Pine Labs' valuation crosses $2 billion as it raises fresh funds from Lone Pine Capital</a>

How Nirav Modi's brother Nehal Modi ran another diamond racket in New York

<ul><li><keyword id="571991" type="ORGANIZATION" weightage="20" keywordseo="Nirav-Modi">Nirav Modi</keyword>’s collection of most expensive paintings and rare watches was sold for over $7 million. </li><li>Ever since Modi escaped the country in 2018 a few days after the $2 billion Punjab National Bank scam broke, the Enforcement Directorate has been trying to recover money. </li><li>To get the right value, <keyword id="12163" type="COMPANY" weightage="20" keywordseo="Ed">ED</keyword> approached Saffronart — one of the leading auction houses in the world — to sell at least 40 pieces. </li></ul>Diamond trader and fugitive Nirav Modi might have fled without paying up his dues, but the extensive art collection he left behind -- did a part of the job. Ever since Modi escaped the country in 2018 a few days after the $2 billion Punjab National Bank scam broke, the Enforcement Directorate has been trying to recover money <a href="https://www.scmp.com/business/companies/article/3050485/nirav-modi-punjab-national-bank-scandal-rolls-royce-and-rise">attaching assets his worth $1 billion.</a> To get the right value, ED approached Saffronart — one of the leading auction houses in the world — to sell at least 40 pieces. It includes a painting by M F Hussain, a luxurious 2010 Rolls Royce Car, designer handbags and luxury watches. Last year, Saffronart auctioned a cache of Indian and Chinese artwork to raise $8 million for the Income Tax department. Here’s a look at some of the rare assets that went under hammer for $7 million: 
	
	
	
	
	<div type="Slideshow" msid="74505046" hostid="261" title="Here’s a look at Nirav Modi’s paintings, rare watches and Rolls Royce that helped recover some of his dues" firstImageMsid="74505167" slideCount="7"></div>

Here’s a look at Nirav Modi’s paintings, rare watches and Rolls Royce that helped recover some of his dues

<ul class="generic-article__summary--ul content--ul"><li class="generic-article__summary--li content--li"><keyword id="176803" type="PERSON" weightage="20" keywordseo="Saffronart">Saffronart</keyword> to help auction assets seized from alleged perpetrators in Punjab National Bank scandal.</li><li class="generic-article__summary--li content--li">The items include artworks, Hermes handbags, a Rolls-Royce and limited-edition watches. </li></ul>The Punjab National Bank scandal is likely to cost India’s second largest state-owned lender about US$2 billion. Sale of assets seized from the alleged perpetrators including diamond designer <keyword id="571991" type="PERSON" weightage="20" keywordseo="Nirav-Modi">Nirav Modi</keyword>, starting this month, suggests a long road to recovery. Through the Enforcement Directorate, the agency responsible for fighting economic crime in India, the government has engaged Mumbai-based Saffronart to auction a litany of luxury goods to recoup its losses. The list includes prized artworks by Indian and Chinese painters, Hermes’ Birkin and Kelly handbags and a Jaeger-LeCoultre watch in platinum. A <keyword id="925742" type="COMPANY" weightage="20" keywordseo="Rolls-Royce-Ghost">Rolls-Royce Ghost</keyword> and a Porsche Panamera S are also going under the hammer. An on-site live auction is set for February 27 and an online bidding on March 3 and 4, with both events expected to raise US$5.7 million and US$7.1 million, respectively, the auction house estimated in an email to the Post on Wednesday. “These works are of significant interest to strong collectors and connoisseurs of Indian and Chinese art,” said Dinesh Vazirani, CEO and co-founder of Saffronart, which has conducted 250 auctions over its 20-year history. “In terms of interest, the bags and cars have a much wider appeal.” Diamond jewellery designer <keyword id="740578" type="DOMAIN" weightage="20" keywordseo="Nirav">Nirav</keyword> Modi fled India in 2018 after the Punjab National Bank scandal broke out. Photo: Mint via Getty Images Modi fled the country in early 2018, days before the scandal broke out revealing the issuance of letters of understanding for trade that bypassed Punjab National Bank’s internal controls. The Enforcement Directorate has since attached at least US$1 billion worth of assets belonging to Modi and other people charged in the case. Modi is being remanded in the UK’s Wandsworth prison until February 27 as he fights an extradition in a trial that is set to begin in May, according to an Economic Times <a href="https://economictimes.indiatimes.com/news/politics-and-nation/pnb-fraud-case-nirav-modi-to-appear-for-remand-hearing-in-uk/articleshow/73761275.cms" target="_blank" class="link-text">report</a>. on January 30. In another UK courtroom, <keyword id="14678" type="PERSON" weightage="20" keywordseo="Vijay-Mallya">Vijay Mallya</keyword> is appealing against his extradition as India’s government seeks to recover loans tied to the collapse of his <keyword id="6373962" type="COMPANY" weightage="20" keywordseo="kingfisher-airlines">Kingfisher Airlines</keyword>, the Hindustan Times reported on Wednesday.<h4 style="margin-top: 0.714286rem; margin-bottom: 1.42857rem; font-variant: inherit; font-stretch: inherit; font-size: 2rem; line-height: 2.42857rem; font-family: Roboto, sans-serif; vertical-align: baseline; display: inherit;"></h4>The two cases bear some semblance to some of <keyword id="21718" type="LOCATION" weightage="20" keywordseo="Asia">Asia</keyword>’s biggest corporate scandals. Low Taek Jho has been in hiding since the US$4.5 billion scandal involving the looting at a Malaysian state investment fund. Carlos Ghosn fled to Lebanon after being charged for alleged financial misconduct while helming Japanese carmaker Nissan Motor. For India, they are emblematic of the state of its banking industry. Years of poor lending controls, weak recoveries and occasional frauds have saddled the financial system with ever more soured loans. The country’s 42 commercial banks collectively wrote off 2.12 trillion rupees (US$29.7 billion) of bad loans in 2018-19, the <a href="https://www.business-standard.com/article/finance/india-s-banks-wrote-off-rs-2-trillion-worth-of-bad-loans-in-2018-19-119112900099_1.html" target="_blank" class="link-text">Business Standard reported</a> , citing official data released in parliament. That was 42 per cent higher than a year earlier, and equivalent to about one-fifth of their non-performing assets, it said. For Saffronart, its business can do with some stamp of recognition. The government last year engaged the firm to auction a cache of works by Indian and Chinese artists, raising almost US$8 million for the tax recovery department. Saffronart has set the industry standard for the process of valuation for artworks and collectibles, Vazirani said, “based on expertise and data analytics.”

Nirav Modi, Punjab National Bank scandal, Rolls-Royce and the rise of a Mumbai auction house

<ul><li>They said the 'red notice' has been issued by the global police body on the request of the Enforcement Directorate (ED). </li><li>Once such a notice issued against a fugitive, the Interpol asks its 192-member countries to arrest or detain the person if spotted in their countries after which extradition or deportation proceedings can begin. </li><li><keyword id="6243034" type="PERSON" weightage="20" keywordseo="ami-modi">Ami Modi</keyword> is stated to have left country soon after the alleged bank fraud case came into light in 2018. </li></ul>An Interpol global arrest warrant has been issued against Ami Modi, wife of <keyword id="571991" type="ORGANIZATION" weightage="20" keywordseo="Nirav-Modi">Nirav Modi</keyword>, prime accused in the over USD 2 billion <keyword id="47268" type="ORGANIZATION" weightage="20" keywordseo="PNB">PNB</keyword> bank fraud case, on charges of money laundering, officials said on Tuesday. They said the 'red notice' has been issued by the global police body on the request of the Enforcement Directorate (ED). Once such a notice issued against a fugitive, the Interpol asks its 192-member countries to arrest or detain the person if spotted in their countries after which extradition or deportation proceedings can begin. Ami Modi is stated to have left country soon after the alleged bank fraud case came into light in 2018. The ED has charged Ami Modi for conspiring and money laundering with her husband and jeweller Nirav Modi apart from his uncle Mehul Choksi and others under the Prevention of Money Laundering Act (PMLA). Nirav Modi (49), is currently lodged in a UK jail after being arrested in London in March, 2019 and is currently fighting extradition to India. He has been declared a fugitive economic offender by a Mumbai court early this year and the court had also ordered confiscation of his assets. The ED has already confiscated about Rs 329 crore of his linked properties. The businessman, Choksi and others are being probed by the ED on money laundering charges in connection with an over USD 2 billion alleged bank fraud at a PNB branch in Mumbai. Similar Interpol notices have been earlier been issued against Nirav Modi's younger brother Nehal Modi and sister Purvi Modi.

Interpol issues red notice against Ami Modi, the wife of fugitive Nirav Modi, over $2 billion PNB fraud case

Nextdoor's founder just listed his 104-year old San Francisco mansion for $25 million — see inside

<ul><li>The income tax department of India recovered ₹ 548 million from the paintings owned by <keyword id="6242396" type="UNKNOWN" weightage="20" keywordseo="PNB-scam">PNB scam</keyword> accused Nirav Modi. </li><li>The department targeted a value of ₹970 million from the auction event held in Mumbai. </li><li>Camelot Enterprises, Nirav Modi’s company has filed a petition in the Bombay High Court for auctioning the paintings — calling the move unlawful.</li></ul>A few days ago, Punjab National Bank(PNB) scam accused Nirav Modi was arrested in London. The income tax department of India, today, auctioned the seized artwork paintings at the Saffron Art Gallery in Mumbai. <a href="https://www.indiatoday.in/india/story/nirav-modi-paintings-go-under-hammer-fetch-over-rs-54-crore-for-income-tax-department-1487311-2019-03-27">According to media reports</a>, the government recovered nearly ₹548 million by selling 55 of the 68 paintings during the bidding session that went on for more than two hours. However, the income tax department expected to recover ₹970 million from the event. The collection, in total, fetched ₹609 million. The auction included bidders from London, New York and New Delhi among others, bidding online for the paintings. As the auction took place, on Wednesday, Camelot Enterprises. Nirav Modi’s company, has filed a petition against the auction of paintings in the Bombay High Court calling the move unlawful. The company also said a few of those paintings are actually company’s assets, demanding to restrict the auction. Ranging from thousands to millions, the paintings were the artwork by renowned Indian painters including Raja Ravi Verma, FN Souza, Jogen Chowdhury, VS Gaitonde and Akbar Padamsee. For instance, Raja Ravi Verma’s oil on canvas from 1881 was sold at ₹140 million. Of the 55 painting sold during the auction, the highest amount fetched from a painting was recorded at ₹220 million and nearly 10 paintings touched the ₹<a href="https://indianexpress.com/article/india/nirav-modi-in-london-prison-his-art-under-mumbai-hammer-i-t-recovers-rs-54-8-crore-5644486/">10 million mark</a>. While, the 13 unsold paintings include a few by Chinese painters including a Miao Xiaochun piece. The paintings were sold at a Goods &amp; Services Tax (GST) of 12% along with a 15% commission for the auction house. Nirav Modi’s legal team is expected to file the second bail application in the UK court on Friday since he denied the first bail application on March 20. The CBI will send a team to Londom for the hearing on 29 March, ANI reported. Earlier, the ED reportedly <a href="https://www.businessinsider.in/nirav-modi-arrested-in-london/articleshow/68496650.cms">seized around</a> ₹6.4 billion from Nirav Modi’s assets including his property, bank deposits and jewellery. See also: <a href="https://www.businessinsider.in/nirav-modi-arrested-in-london/articleshow/68496650.cms">Here’s how the 13-month chase for Nirav Modi came to an end</a> <a href="https://www.businessinsider.in/india-presses-new-charges-against-diamond-merchant-nirav-modi-and-wife-ami-in-alleged-money-laundering-case/articleshow/68367950.cms">India presses new charges against diamond merchant Nirav Modi and wife Ami in alleged money laundering case</a>

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How Nirav Modi's brother Nehal Modi ran another diamond racket in New York

IANS

Here’s a look at Nirav Modi’s paintings, rare watches and Rolls Royce that helped recover some of his dues

Preeti Soni

Nirav Modi, Punjab National Bank scandal, Rolls-Royce and the rise of a Mumbai auction house

SCMP

Interpol issues red notice against Ami Modi, the wife of fugitive Nirav Modi, over $2 billion PNB fraud case

PTI

Nextdoor's founder just listed his 104-year old San Francisco mansion for $25 million — see inside

Mary Meisenzahl

India has seized over ₹548 million worth of paintings from Nirav Modi’s art collection including prized work by VS Gaitonde

BI India Bureau

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