The PMLA (Prevention of Money Laundering Act) have summoned fraudster Nirav Modi and his uncle Mehul Choksi to appear before the court on September 25 (Nirav Modi) and September 26 (Mehul Choksi).
According to the officials,’the summon is in response to the Enforcement Directorate’s plea seeking action against them under the new Fugitive Economic Offenders law in the alleged USD 2 billion PNB bank fraud case.’
The ED had filled two separate application against both the jewellery traders.
In order to confiscate their assets which is worth Rs 3,500 crore in the case, The investigative agency has moved to the court seeking to declare both as fugitive economic offenders. The ED wants to confiscate both movable and immovable assets of Nirav Modi and Mehul Choksi, located in United Kingdom and UAE.
The Lok Sabha had cleared this Bill on July 19, while in Parliament only fugitive bill was passed by voice vote in the Rajya.
This decision comes after two PMLA charge sheets were filled by the agency against the two diamond jewellers.
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“Investigations have revealed that Nirav Modi and Mehul Choksi have committed the offence of cheating against Punjab National Bank (PNB) in connivance with certain bank officials by fraudulently getting the LOUs/FLCs issued without following prescribed procedure and caused a wrongful loss to the bank. “They have further siphoned off the proceeds of crime, generated through layering of multiple dummies, related to connected entities in India and abroad,” the agency had said in its application.
Non-bailable warrants were issued against Nirav Modi and Mehul Choksi, while an Interpol ‘red corner’ arrest warrant was issued against them on the request of the ED.
260 searches were conducted across the country regarding this case.
According to government officials,”A fugitive economic offender is a person against whom an arrest warrant has been issued in respect of a scheduled offence and who has left India so as to avoid criminal prosecution, or being abroad, refuses to return to India to face criminal prosecution.”