Fugitive diamnond jeweller Mehul Choksi, wanted in the Rs 13,500-crore Punjab National Bank (PNB) fraud case, diverted over Rs 3,257 crore of the money raised from fraudently obtained letters of undertaking (LOUs) and foreign letters of credit (FLCs) to overseas dummy firms, an informed source said on Tuesday.

The Enforcement Directorate (ED) source revealed that Choksi of the Gitanjali Group, who acquired the Antiguan citizenship, also highly inflated the prices of precious metals sold from his business outlets and diverted about $106 million to his nephew Nirav Modi and his father Deepak Modi.