It is now confirmed Nirav Modi was not a clean businessman. His chartered accountant and consultant Ramesh Assar has spilled the beans. In an exclusive telephonic interview with NewsX, Assar has confessed he was cheated by Nirav Modi, who dragged him into a web of shell companies. In the telephonic conversation, Assar has told NewsX that Nirav Modi had formed fourteen shell companies. All the companies were to invest in Nirav’s main company Firestar International Pvt Ltd and to own immovable properties through these companies.
Out of the fourteen companies only two companies, Camelot Enterprises Pvt Ltd and Camelot Trading Private Ltd, were doing trading in securities and three of them — Bentley Properties Pvt Ltd, Mak Business Enterprise and Paundra Enterprises Pvt Ltd — were formed with the sole purpose of purchasing properties. The three companies had bought properties in the prime Mumbai locations of Nariman Point, Lower Parel and Marol.
Assar doesn’t even know why those companies were formed but since Nirav asked him to become director of the companies he agreed. As he was a 68-year-old chartered accountant and did not have any other means of earning a livelihood, he accepted Nirav’s proposal. He says he doesn’t even know who the other directors of the companies were. Nirav had earlier this year told Assar that the companies were shell companies and were not doing any diamond business. Both of them had met last in January 2018.
Ever since CBI had registered case against him for cheating Punjab National Bank (PNB), Nirav has been claiming that he was doing successful diamond business but banks ruined his jewellery business. However, with the revelation of Assar it is now clear Nirav’s intentions were not good. And that he had indeed formed shell companies, which are usually formed to launder money and evade taxes.
Sources said, Assar has also recorded his statement on the revelation to CBI and Enforcement Directorate. In his statement he had claimed that he used to sign the annual accounts/returns of the companies under Registrar of Companies and Income Tax Department.
Assar’s revelations has had both CBI and Enforcement Directorate worry that since Nirav Modi had formed shell companies in India there is a strong likelihood that he could have formed shell companies in foreign companies as well to divert funds. According to reports Nirav Modi has also filed proceedings for insolvency in the US and is winding up his overseas business in places like Hong Kong.