PNB fraud: Non-bailable warrants issued against Nirav Modi, Mehul Choksi

CBI said that Nirav Modi and Mehul Choksi have been evading attendance and not cooperating with the investigation despite summons issued to them.

In its application seeking the warrants, the ED has claimed that Nirav Modi, who left the country in the first week of January, is ‘reportedly presently in Hong Kong’. (File)

A special court has issued non-bailable warrants against businessman Nirav Modi and his uncle Mehul Choksi in the Punjab National Bank fraud case. In its application seeking the warrants, the ED has claimed that Modi, who left the country in the first week of January, is “reportedly presently in Hong Kong”. The agency, which is probing allegations of money-laundering against Modi, Choksi and others, has said that the two have been evading attendance and not cooperating with the investigation despite summons issued to them.

They submitted before the court that it was not likely that they would appear before investigators unless they are compelled by law to do so. Special Judge Salman Azmi designated under the Prevention of Money Laundering Act allowed the ED’s applications on Saturday to issue the warrants against them.

The ED called Modi the “perpetrator” of the fraud at PNB, where fraudulent Letters of Understanding were issued in favour of his companies and that of Choksi’s causing losses to the bank. “The case involves a circuitous web of routes created by the said Sh. Modi and in such circumstances, the fraudulent transactions appears to be in the personal knowledge and exclusive domain of Shri Nirav Modi,” the ED said, submitting that his personal presence was necessary for further probe.

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The ED had earlier submitted through special public prosecutor Hiten Venegaonkar that repeated summons were issued to both Modi and Choksi to appear before it for investigations. Modi responded to the summons through email on February 26, asking the assistant director of the ED, who summoned him, to communicate with him on his email. He said in this email communication with the ED that the manner in which the entire issue had been “politicised and sensationalised” by the media, he had apprehensions regarding the “unfairness of the process”, which had multiplied with every passing hour, he claimed. “I am still working abroad as I continue to be very engaged in trying to deal with the businesses that I am involved with outside of India. I am trying to ensure that so far as possible, the position of these businesses’ creditors (including banks) and employees are properly considered given the difficulties these businesses are experiencing,” Modi had said in his email.

The ED sought for an open-ended warrant against both Modi and Choksi to secure their presence in the investigation. Modi’s representatives argued before the court that before the court decides on the application, they should be heard as their rights would be impacted by the decision. The court, however, ruled that he did not have the locus standi to be heard before such a warrant is issued.

Now that a warrant has been issued, other processes including a Red Corner Notice against the absconding accused can be initiated.

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