“Where is Nirav Modi? Where is Mr Choksi? We should know that the person is alive and present before the petitions can be entertained.” the bench asked the counsels
Mumbai: The Bombay High Court summoned on Monday (29th July) absconding diamantaire Mehul Choksi, a key accused in the multi-crore Punjab National Bank (PNB) scam, to appear before the court.
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The bench, comprising Justices Bharti Dangre and Manjusha Deshpande, questioned Choksi’s absence, stating,
“Where is the applicant? He is a fugitive and we should entertain these petitions?”
Choksi’s lawyer, Jasmin Purani, argued that he had not been officially declared a fugitive, while the Enforcement Directorate (ED) lawyer, Hiten Venegaonkar, informed the court that proceedings to declare Choksi a fugitive are ongoing.
The court expressed its concern, asking,
“Where is Nirav Modi? Where is Mr Choksi? We should know that the person is alive and present before the petitions can be entertained.”
The court was hearing two petitions filed by Mehul Choksi, one involving his claim to cross-examine the Deputy Director of the ED in the Fugitive Economic Offender (FEO) proceedings, and the other seeking permission to present evidence before the trial court in the same proceedings.
The Bombay High Court rejected both applications and adjourned the hearing to August 12, stating,
“We don’t know about the trial court, but we will not hear petitions like this.”
The ED initiated FEO proceedings against Choksi a few years ago, which continue to drag on in court. Previously, the ED successfully had Choksi’s relative, Nirav Modi, declared a FEO in connection with the PNB scam. Mehul Choksi faces prosecution in the PNB scam, which involves a fraudulent amount of Rs 13,000 crore.
What is PNB Scam?
The PNB Scam, also known as the Punjab National Bank fraud, involved a massive financial fraud by jewelers Nirav Modi and Mehul Choksi. They allegedly obtained fraudulent letters of undertaking (LOUs) from PNB’s Brady House branch in Mumbai to secure overseas credit from other Indian lenders.
The scam, discovered in early 2018, amounted to over $2 billion and led to significant legal and financial repercussions for the bank and the Indian banking sector. Key aspects include fraudulent LOUs, overseas credit, Nirav Modi, Mehul Choksi, financial fraud, PNB, legal and financial impact.
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