Nirav Modi is an Indian-born international diamond jewelry designer. He is the founder of ‘Nirav Modi’ jewelry house and the company ‘Firestar Diamond’ which yielded revenues of $2.3 billion in 2017. The 47 year old regularly features on the pages of some of the major international fashion magazines and financial dailies, which include advertisements for his jewelry stores on posh high streets like 727 Madison Avenue in New York and 31 Old Bond Street in London.
In Feb 2018, the Punjab National Bank (PNB) filed a complaint of fraud against Nirav Modi and his companies; the fraud is a part of an INR 11,400 crores or $1.77 billion scam.
In 2017, Forbes estimated the net worth of Nirav Modi to be more than $1.72 billion and ranked him as the 85th richest person in India. As per Forbes, the financial worth of Modi was accumulated via his retail and jewelry design businesses.
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Early Life and Education
Nirav Modi was born in India and raised in Antwerp, Belgium. His parents continue to reside there. Nirav did his schooling at Antwerp and later enrolled at University of Pennsylvania’s Wharton School.
The family of Modi was in the diamond business for 7 generations. Hence, his early childhood consisted of dinner table conversations about the diamond trade and the cut and size of the rock most recently acquired by the family. Despite the history of his family, Nirav did not want to get into the diamond business and instead wanted to a music conductor.
Nirav came to realize his passion for music as his profession. At age 19, he dropped out of Wharton, relocated to Mumbai, India, and joined his uncle Mehul Choksi’s diamond business company, Gitanjali Gems Ltd. he worked there for 10 years and was involved in the purchase and sale of polished diamonds.
Career
The time spent by Modi in the 1990s at Gitanjali Gems was instrumental in helping him gain all the knowledge about the diamond trade. After 9 to 10 years at Gitanjali Gems, Modi launched his own jewelry business.
In 2000, Nirav started his own company Firestar Diamond International Pvt. Ltd. It traded in diamonds and had around 15 workers. Two years later, it entered into a deal with a client to be a contract manufacturer for diamond jewelry. In 2005, the company acquired the marketing and jewelry distribution business of Fredrick Goldman, the biggest jewelry client of Firestar. This acquisition helped the company gain the relationships, the style, and the US retailers’ account codes.
In 2007, Nirav made another acquisition. He purchased Sandberg & Sikorsky, the oldest manufacturer of bridal jewelry. This company sold to retailers and was involved in distribution of jewelry to the American armed forces.
The financial situation after the 2008 crisis was chaotic, but Modi’s company was in a good position. Hence in 2009, they established marketing offices in Hong Kong and Dubai, manufacturing factories in Johannesburg and Moscow, and sourcing warehouses in Antwerp.
The Firestar Diamond International also owns another jewelry brand “A Jaffe” which makes jewelry for other well-known labels in America.
Jewelry Designing
Modi did not have global fame in the jewelry business before he ventured into the luxury fashion jewelry sector. This foray into jewelry designing occurred by chance. In 2009, one of Nirav’s friends wanted him to design a pair of earrings for her. He was reluctant at first, but after a few meetings with her, he relented and designed a simple pair for her. His friend has extremely happy with her new earrings. This incident inspired Modi and he began planning on launching an Indian/Asian globally known luxury jewelry brand.
Nirav met with instant success in the new business. In 2010, he became the first Indian person to be featured in a Christie’s auction catalogue cover. The auction was held in Hong Kong and Nirav’s piece was the Golconda Lotus Necklace. It featured a 12.29 carat rare Golconda diamond, limited Ainra cut diamonds, and pink diamonds. It was sold at the auction for a whopping INR 16 crores ($3.56 million) as against a base price set at INR 12 crores. In 2012, Modi’s Riviere Diamond Necklace with a total of 88.88 carats 36 white flawless diamonds was auctioned at Sotheby in Hong Kong for $5.1 million. A year later, in 2013, Nirav entered Forbes list of world billionaires.
In 2014, Modi forayed into retail stores, and opened his first store at Defence Colony located in New Delhi. Subsequently many more Nirav Modi brand stores were opened in different locations in cities like Hong Kong, Mumbai, London, New York, Las Vegas, Beijing, Honolulu, and Singapore. The most recent store was opened by Modi in Feb 2018 at MGM Macau.
In 2017, Modi moved his corporate office into a sprawling space located on the 20th floor of a luxury building in Lower Parel, Mumbai. The global business empire of Nirav is supported by a workshop located in the Kurla suburb of Mumbai.
As of end of 2017, the Nirav Modi brand of jewelry ably and successfully competes with rivals Richemont SA’s Cartier and Van Cleef. His designs have been worn by International as well as Indian style icons and celebrities, including Aishwariya Rai, Naomi Watts, Rosie Huntington-Whiteley, Lisa Haydon, and Coco Rocha. International star Kate Winslet wore Nirav’s diamond creations on the red carpet at the 2016 Academy Awards. Many big business families in India are also a part of the regular clientele of the Nirav Modi jewelry brand.
Nirav’s part in designing of the jewelry
Modi has stated that he does not draw the designs of the jewelry creations of the Nirav Modi brand. He articulates all his thoughts and his employees draw a sketch on the basis of that. This is what gradually evolves into a Nirav Modi branded piece of jewelry. Nirav reiterated that he does design each piece of jewelry, irrespective of its price.
A few of the collections designed by Modi can be stretched. The brand is well-known for its innovative use of technology. The company manufactures rings and bangles that can be stretched. Nirav has proudly stated that this innovation is a marvel of advanced engineering; a place where science meets art. Such innovation is what has rapidly increased the demand for Nirav Modi jewelry collections.
The price range for Nirav Modi jewelry begins at INR 2 lakhs and goes all the way up to INR 105 crores, which is the most expensive jewelry designed by him. A large percentage of his jewelry is priced in the range of INR 5 lakhs and INR 20 lakhs. His main competitors are Tiffany & Co and Cartier.
Nirav Modi scam details – INR 11,400 crores, how did it unearth?
Indian law enforcement agencies like the ED/Enforcement Directorate and the CBI/Central Bureau of Investigation as well as different tax departments have placed Nirav Modi under the scanner since 2014 for different alleged frauds and illegal financial/business transactions.
In 2014, the DRI/Directorate of Revenue Intelligence had alleged Modi of diverting duty-free, imported, polished and cut diamonds, and pearls to the Indian domestic market. Such diversion is illegal and violates the rules of import and export. The DRI had called Modi for an explanation.
In Feb 2018, the CBI began investigating Modi on the basis of an FIR/complaint registered by the public sector bank Punjab National Bank (PNB) which alleged that Nirav along with his varied partners defrauded the PNB of nearly INR 280 crores or $40 million. The total amount calculated till date (as of Feb 2018) as fraud carried out Nirav Modi on PNB may be INR 280 crores. However, the probable loss liability of the PNB goes up to more than INR 11,000 crores or $1.8 billion.
On the basis of the FIR by the bank, the CBI has registered a cheating complaint of more than INR 280 crores against Modi and his partners. The ED also filed a case against Modi for money laundering and is investigating the case of fraud. In Feb 2018, it conducted multiple searches and raids on the offices, homes, stores, and other properties owned by Modi.
Nirav Modi and his full family left India in January 2018. As of 16th Feb 2018, his whereabouts are unknown. His passport was suspended by the Indian government for a period of 4 weeks, starting 16 Feb 2018.
The chairman of Gitanjali Gems, Mehul Choksi, who is Nirav’s uncle, has also been named by the CBI as one of the 4 main accused. In the past, Choksi has however denied any associations with any of the companies of Modi.
On Feb 7, Choksi’s company had informed the varied stock exchanges that its chairman did not have any business or other dealings with the company of Modi that was at the center of the $1.8 billion scam as well as the fact that Choksi had retired as partner from one of the firms of Modi in 1999.
Choksi’s whereabouts are also unknown as of Feb 2018. His passport has also been suspended for 4 weeks, beginning 16 Feb 2018.
Nirav Modi – Wife and Family
- Nirav Modi is married to American citizen Ami Modi. The couple has 3 children. The family converses in Gujarati language at home.
- Nirav’s younger brother Neeshal, who also left India in January 2018, is married to Isheta Salgaocar. Isheta is the niece of Indian business tycoons Mukesh Ambani and Anil Ambani.
- Modi is 5.3 feet tall
- Modi likes reading and reads more than 10 global newspapers each day. He also reads literature, magazines, and poetry.
- He loves hi-fi music systems and searches for the best systems from well-known companies like Olufsen and Bang during his overseas travels.
- During his frequent travels, Nirav also likes visiting museums. He got this habit from his interior designer mother.
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