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Mehul Choksi Fraud Case: The prosecution said that Choksi has already fled from many courts to avoid legal proceedings.
Mehul choksi fraud case: Punjab national bank (PNB) In connection with the fraud of more than Rs 6300 crore, the bail plea of the wanted fugitive diamond merchant Mehul Choksi in India has been rejected by an appellate court in Belgium. Officials said the court rejected the appeal just before hearing Choksi’s extradition. The official said that the court rejected the appeal on the strong arguments made by the CBI to the Belgium prosecution. The prosecution said that Choksi has already fled from many courts to avoid legal proceedings. If he is released on bail, he can run to another country. Belgian official said that Choksi was arrested in Belgium in April on the basis of extradition request sent by CBI.
CBI helping Belgium prosecution
He said that his previous bail plea was also rejected by the Belgian Court of Cassation. He said that Choksi filed another bail plea on 22 August and offered house arrest under surveillance at home, but the appellate court rejected it earlier this week. He said that in the extradition case of 66 -year -old Choksi, owner of Gitanjali Group, arguments would be heard in a Belgian court in mid -September. The CBI will help the prosecution of Belgium to make a strong case to send him back to India so that he can be prosecuted in cases. He told that Choksi and his nephew Nirav Modi are wanted in Punjab National Bank for fraud of Rs 13,000 crore. Both the accused had carried out fake letter of undertaking in connivance with some bank officials at Brady House branch in Mumbai.
Choksi is lodged in London jail
Modi declared a fugitive economic offender has been lodged in London jail since his detained by the officials there in 2019 based on the legal request made by the ED and CBI in this case. He is opposing India extradition. The CBI had sent a team of officials to Brussels, who provided the details, evidence and documents of the case to the prosecution of Belgium, who will present the case. He said that the CBI will also appoint an European law firm to assist in the case. Choksi has cases registered under the provisions of prevention of corruption, besides the Indian Penal Code (IPC) criminal conspiracy, fraud and rigging in accounts, which all fall under the category of crime in Belgium. This helps to apply dual offense of extradition treaty when demanding her extradition.
PN’s Brady House branch fraud in Mumbai
The CBI, in its extradition request, has also cited the United Nations Convention (UNCAC) against the United Nations Convention and Corruption against the Transitional Organized Crime (UNTOC). Sources said that at least two open-ended arrest warrants issued by a special court in 2018 and 2021 have been shared by Indian agencies as part of extradition request with their Belgium counterparts. According to investigative agencies, officials of the Brady House branch of PNB in Mumbai released 165 LOU and 58 FLCs during March-April 2017, against which 311 bills were redeemed. These LOU and FLC Choksi firms were issued without entry into the PNB’s central banking system to avoid any investigation in case of any sanctioned limit or cash margin and default.
Foreign bank guaranteed LOU
LOU is a guarantee given by a bank to a foreign bank by its customer. If the customer is unable to repay the foreign bank, the liability comes to the guarantor bank. The money was lent by PNB based on these LOUs SBI Mauritius, Allahabad Bank Hong Kong, Axis Bank Hong Kong, Bank of India Antwerp, Canara Bank Manama. In the PNB bank fraud case, the CBI supplementary charge sheet was charged. Since the accused companies did not pay the amount received against the said fraud LOU and FLC, PNB paid 6,344.97 crore (US $ 965.18 million) to foreign banks, including overdated interest.
Also read: Beware of fake currency! 59.50 lakh counterfeit notes recovered in this state of the country, 7 arrested in case
