Latest news with #LOUs
Indian Express
08-08-2025
- Politics
- Indian Express
PNB ‘fraud': CBI seeks to record statement of Nirav Modi's brother-in-law who sought to become witness
Over a month after the Central Bureau of Investigation filed a supplementary chargesheet against Maiank Mehta, brother-in-law of fugitive jeweller Nirav Modi, the agency sought permission from the special court to record his statement, in a bid towards deciding his application to become an approver in the PNB fraud case. Mehta and his wife Purvi—Modi's sister—have become prosecution witnesses in the case filed by Enforcement Directorate (ED) and will be expected to depose against the accused, including Modi. They had claimed in 2020 that they wanted to distance themselves from Modi, and could provide 'substantial and important evidence' relevant to him and his dealings. They similarly sought to become witnesses in the CBI's case but their pleas are yet to be decided as the agency is yet to give its go-ahead. Mehta was named an accused in the supplementary chargesheet submitted before the court by the CBI in July, with the agency claiming that he played an active role in the conspiracy along with the other accused to transfer funds received from the Punjab National Bank gained allegedly through issuance of fraudulent Letters of Undertaking. This week, the CBI sought to record Mehta's statement under Section 164 of the Criminal Procedure Code, which is recorded before a magistrate. The court has directed Mehta to remain present before it on August 11 for recording of his statement. If the CBI gives its no-objection to make him an approver, the court will then decide if he can be examined as a prosecution witness in the case, where his testimony including facts deposed against the accused, can be used as evidence. On July 3, the Bombay High Court had directed that the cognizance of the supplementary chargesheet filed against Mehta not be taken till his application to turn approver is not decided. The high court directed the special court to decide on the plea expeditiously. In its supplementary chargesheet, the CBI claimed that Mehta's role as one of the beneficiaries of the defrauded amount has surfaced. It said that in 2013, USD 81.09 million related to 43 LoUs issued by the Punjab National Bank were transferred to one company named Pacific Diamonds. The CBI alleged that in 2013, nearly 30 million USD from Pacific Diamonds were transferred to the savings account of Mehta, which he then transferred in 10 transactions to his sister Purvi. She claimed that she received these funds from Mehta as a gift. It was also claimed that Mehta was appointed nominee in accounts where transfer of funds related to the LOUs were made and had also claimed that Nirav Modi's father, Deepak Modi, had transferred USD 8.9 million to Mehta 'through their shell companies'. The trial in both the ED and CBI cases is yet to begin. Modi is currently undergoing extradition proceedings in the UK, while those from his firms and the PNB staff are out on bail. Purvi is a citizen of Belgium, while Mehta who resides in Hong Kong, is a citizen of the UK, and works with a jewellery firm.
India Today
29-04-2025
- Business
- India Today
Setback for Mehul Choksi, Belgium court adjourns plea challenging arrest
Fugitive businessman Mehul Choksi, who was arrested in connection with PNB bank scam case, received yet another setback on Tuesday as a court in Belgium adjourned the hearing on his plea challenging his Belgian Police took custody of Choksi, the second "prime suspect" in Rs 13,000-crore PNB loan fraud case on April 12 in Antwerp, based on an extradition request moved by the CBI and the Enforcement Directorate (ED).advertisementThis was the second plea by Mehul Choksi who, in his fresh plea, claimed that the process undertaken for his arrest was arbitrary and unlawful. His earlier plea seeking bail was rejected by the court last week. The next date for the hearing is yet to be April 22, a court in Belgium turned down his request for bail. In his first plea, Mehul Choksi told the court that he was unwell and wished to be with his family. He said he was ready to accept any conditions, including wearing a GPS-enabled anklet if India said it is working closely with Belgium for the extradition of Choksi."Based on our extradition request, he was arrested. We are working closely with the Belgium side on his extradition so that he can face trial in the country," External Affairs Ministry spokesperson Randhir Jaiswal is accused of defrauding Punjab National Bank of over Rs 6,095 crore through a massive banking scam involving the fraudulent issuance of Letters of Undertaking (LOUs) and the manipulation of Foreign Letters of Credit (FLCs).Though the broader estimated fraud is pegged at over Rs 13,000 crore, investigative agencies have specifically built a case against Choksi based on the Rs 6,095 crore component linked directly to his operations.
