A special anti-money laundering court granted interim bail to Sunil Varma, a former executive of the Gitanjali Group and an accused in the multi-million dollar Punjab National Bank (PNB) scam, after he appeared in court.
![[PNB Scam] Gitanjali Group Ex-Staffer Gets Interim Bail; CBI Seeks Custody](https://i0.wp.com/lawchakra.in/wp-content/uploads/2024/07/image-73-2.png?resize=648%2C320&ssl=1)
Mumbai: On Thursday (18th July): A special anti-money laundering court granted interim bail to Sunil Varma, a former executive of the Gitanjali Group and an accused in the multi-million dollar Punjab National Bank (PNB) scam, after he appeared in court. The Central Bureau of Investigation (CBI), also probing a related case, sought his custody following his appearance.
Varma, previously the international business head for Mehul Choksi’s Gitanjali Group, had been on the run since the scam emerged in 2018. He appeared in court following the suspension of a non-bailable warrant issued against him in a money laundering case investigated by the Enforcement Directorate (ED). The ED alleges Varma, along with Choksi and others, orchestrated the scam and set up shell companies.
“The applicant was the mastermind behind formation of shell companies in Gitanjali Group,” the agency said.
Special Judge S M Menjonge had previously suspended Varma’s warrant, instructing him to appear in court by July 18. The CBI’s Special Public Prosecutor A Limosin argued that Varma evaded the agency’s summons and fled the country, making him unavailable for investigation. The CBI stated that Varma’s custody was necessary to uncover details related to the case.
Varma’s lawyer, Advocate Abad Ponda, argued that the summons were incorrectly served in Mumbai, not at Varma’s current address in the USA. He contended that the request for Varma’s remand was not maintainable as the summons were not properly served. The judge, needing time to review the orders cited, postponed the matter for an order on July 20, granting interim bail to Varma in the meantime.
Varma is accused in multiple PNB fraud cases by both the ED and CBI. A non-bailable warrant was issued against him in August 2018 (ED case) and another in July 2021 (CBI case). In April, Varma sought to cancel the CBI warrant, claiming his intent to return to India and seeking protection. The Bombay High Court canceled the CBI warrant and directed the agencies to facilitate Varma’s court appearance.
Following the High Court’s direction, Varma approached the special court under the Prevention of Money Laundering Act (PMLA) on July 1 to cancel the pending warrant.
Special Judge Menjonge suspended the warrant in the money laundering case, instructing the ED not to execute it until further notice.
Mehul Choksi has resided in Antigua since 2018, fleeing India weeks before the scam was uncovered. Choksi and his nephew, Nirav Modi, are accused of defrauding PNB of over Rs 13,000 crore by manipulating letters of undertaking (LoUs) and foreign letters of credit (FLCs) with the collusion of officials from the bank’s Brady House branch in Mumbai.
