In the latest development of the Punjab National Bank (PNB) scam, diamantaire Mehul Choksi has petitioned the special PMLA court to dismiss the Enforcement Directorate’s (ED) application to declare him a fugitive economic offender. Choksi, along with his nephew Nirav Modi, is a key figure in the PNB fraud, which surfaced in 2018, involving a purported amount of Rs 13,400 crore.
This month, through his advocate Rahul Agarwal, Choksi filed a plea in the court, which handles cases under the Prevention of Money Laundering Act (PMLA). He argued that the ED’s fluctuating allegations and the evidence they presented are contradictory, thereby undermining the legal process.
According to the plea, the ED initially claimed that Choksi suspiciously fled India in early January 2018 and has since evaded joining the investigation despite multiple summons. This led to the revocation of his passport on February 23, 2018, followed by the issuance of a non-bailable warrant. However, a recent rejoinder by the ED presented a revised narrative, including an allegation that Choksi had disposed of properties anticipating the disclosure of the fraud.
In a significant twist, the April compliance report by the ED suggested that Choksi had applied for a visa to Antigua and Barbuda with intentions to obtain citizenship, hence planning his exit from India well before the scam was uncovered. This, Choksi’s legal team points out, is a clear deviation from their earlier statements and represents a manipulative legal strategy.
Choksi has urged the court to reject the ED’s plea on the grounds that their inconsistent claims indicate an attempt to “play fraud” on the court. The matter is set for a hearing on September 27.
Under the Fugitive Economic Offender Act, individuals can be declared fugitives if they leave India to avoid criminal prosecution, or refuse to return to face prosecution. While Choksi fights his legal battles, Nirav Modi has been declared a fugitive economic offender and is currently incarcerated in London since 2019 following his arrest related to the same scandal.
