The sister of disgraced former diamond and jewelry mogul Nirav Modi has been implicated in the recent “Pandora Papers” document leak, which shed light on the international financial transactions of high-profile and wealthy people.
Called “the greatest investigation in the history of journalism,” the Pandora Papers include approximately 12 million documents detailing complex corporate structures and offshore banking operations which, while not illegal, may attract activities such as escape. tax and money laundering.
The documents were leaked to the International Consortium of Investigative Journalists and analyzed by 150 media outlets around the world.
Among them was Indian express, who then published a report on the shares of Purvi Modi, also known as Purvi Mehta.
His brother Nirav Modi has spent over two years in UK custody and is currently facing extradition to India over the $ 1.8 billion (A $ 2.3 billion) fraud Punjab National Bank (PNB).
Indian express reports that in December 2017 – a month before Modi fled India – her sister set up Brookton Management Ltd, a company registered in the British Virgin Islands, which would act as a protector for The Deposit Trust, which she has formed through a company in Singapore.
The British Virgin Islands have long been considered a “tax haven”, as the offshore companies incorporated there pay no income tax. There is also no capital gains tax.
In trust law, a protector plays a supervisory role in the administration of a trust, enforcing its terms, ensuring that the settlor’s intentions are respected and protecting it against abuse by the trustees, which can constitute a risk with offshore trusts.
Appointing a protector provides flexibility when physical or legal changes arise and allows a third party to act as the primary point of contact between the trustees and the beneficiaries of the trust.
According to Indian expressPurvi Modi said the money in the trust was his salary and other personal income from his role as the chief creative officer of his brother Firestar Diamonds’ company, which was involved in the PNB fraud.
Files analyzed by Indian express also reportedly showed that Purvi Modi and another brother, Neeshal Modi, owned three other companies registered in the British Virgin Islands – Integrated Investing, Xclusive Consultants and Panera Assets – that the Indian economic intelligence and law enforcement agency , the Enforcement Directorate (ED), claims were used by Nirav Modi to launder money.
The Dubai-based subsidiaries of Integrated Investing and Xclusive Consultants, named Diagems and Universal Fine Jewelery respectively, were created in 2012; the ED alleges that both were “shell companies” used to divert $ 265 million to Purvi Modi.
Another trust created by Purvi Modi, the Monte Cristo Trust, was reportedly used to create Belvedere Holdings Group in the British Virgin Islands in 2013; the Group bought a 6.25 million euro building in London in 2017.
Nirav Modi was arrested in London in March 2019.
Purvi Modi was reportedly the subject of an Interpol Red Notice in 2018, regarding money laundering charges; she previously denied any knowledge of fraudulent transactions.
In a statement sent by email to Indian express, Manavendra Mishra, a legal representative of Purvi Modi, has denied the wrongdoing related to the Pandora Papers report.
“We are the acting attorneys for Ms. Purvi Modi in India. We deny all of the allegations below raised in your email. We are unable to respond or comment at this point as the matter is deputy judge before the PMLA special [Prevention of Money Laundering Act] court, ”the statement read.
Earlier this year, Purvi Modi and her husband Maiank Mehta – who are Belgian and British citizens respectively – agreed to cooperate with the PNB fraud investigation against her brother in exchange for pardons.
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