Latest news with #LettersofUndertaking
Indian Express
a day ago
- Business
- Indian Express
Watches, coins, flat: Properties linked to Nirav Modi worth Rs 60 crore to be restored to PNB
A special court permitted restoration of properties linked to diamond merchant Nirav Modi valued at over Rs 60.33 crore, to the Punjab National Bank (PNB), allowing the bank's plea which said that the consortium of banks led by it has incurred losses of Rs 8526 crore in the alleged fraud. The restored properties include valuables worth Rs 40.83 crore, including jewellery, coins, watches and cash, from the Worli residence of Nirav Modi and a flat worth Rs 19.50 crore in Breach Candy. These properties were attached by the Enforcement Directorate (ED) in 2018-19 under the Prevention of Money Laundering Act, as part of its probe in to the fraud, where Nirav Modi and others are alleged to have connived with bank officials in issuing fraudulent Letters of Undertaking from 2008, causing losses to the banks. The PNB, citing the Prevention of Money Laundering (Restoration of Confiscated Property) Rules, 2016, said that the banks have a legitimate interest in the properties as they have suffered cumulative loss of more than Rs 8526.20 crore due to the fraud. It said that the value of the properties attached by the ED is around Rs 2,324.97 crore. It sought exemption of the two properties, including the valuables seized from the Samudra Mahal flats of Nirav Modi and a flat in Diamond Head building in Breach Candy, which was in the name of his sister, Purvi. The ED gave its no-objection to the plea. Purvi's lawyer, Manavendra Mishra, submitted that she is not the beneficial owner of the flat, and has no objection for the PNB plea to be allowed. Special Judge A V Gujarathi said that the case is pending since 2019 and the proclamation is issued against the diamond merchant and others in 2019, as they are absconding. A plea to declare Nirav Modi a fugitive economic offender is also pending. He is currently in the UK facing extradition proceedings. The court also noted that the ED and Purvi have not objected to the plea. It directed PNB to file an undertaking to return the amount with interest, in case the court deems it fit. Previously too in separate orders, restoration of properties was allowed to the PNB.
India Today
11-06-2025
- Politics
- India Today
CBI seeks high court nod to chargesheet Nirav Modi's brother-in-law Maiank Mehta
The Central Bureau of Investigation (CBI) on Tuesday sought permission from the Bombay High Court to file a chargesheet against fugitive diamantaire Nirav Modi's brother-in-law, Maiank Mehta, stating that its investigation is complete and the chargesheet is ready. Advocates Kuldeep Patil and Saili Dhuru, representing the agency, submitted the request before a bench of Justices AS Gadkari and Rajesh S advocate Amit Desai, appearing for Maiank Mehta, opposed the CBI's request and sought interim protection from coercive action not just for Maiank but also for his wife, Purvi the court declined to extend the protection to her. "Today there is no apprehension of her arrest as she is not here in India. There is no question of protecting her," the bench said. Purvi Mehta, a Belgian national and Nirav Modi's sister, was chargesheeted by the CBI in March this year in connection with the multi-crore Punjab National Bank (PNB) fraud case. Both she and Maiank Mehta were previously listed as wanted accused by the CBI and the Enforcement Directorate (ED).In exchange for full disclosure, the ED accepted Maiank and Purvi Mehta as approvers and granted them a pardon under the Prevention of Money Laundering Act (PMLA). The special PMLA court even allowed Maiank, a British national based in Hong Kong, to return home after he promised to cooperate with the proceedings. However, the CBI has consistently opposed his travel and has not accepted him as an CBI has alleged that Purvi Mehta was one of the beneficiaries of the funds acquired through fraudulent Letters of Undertaking (LOUs) issued by PNB at Nirav Modi's behest. While Maiank Mehta was questioned several times by the CBI, he was not named in the chargesheet due to a Bombay High Court order directing the agency not to take coercive action against him. That protection has been in effect since July 25, 2022, and the CBI has been seeking its removal Purvi Mehta has filed a petition in the High Court seeking protection from arrest and prosecution by the CBI, arguing that she has already been pardoned in the ED's case. She has also sought the quashing of the chargesheet filed against her or, at the very least, a stay on proceedings until her petition is court has scheduled the next hearing in the matter for July Watch
India Today
06-06-2025
- Business
- India Today
Sebi issues attachment order against Mehul Choksi for non-payment of penalties
The Securities and Exchange Board of India (Sebi) on Friday issued a recovery attachment order against absconding diamond merchant Mehul Choksi, who is a co-accused in the Rs 13,850-crore Punjab National Bank (PNB) fraud case, which is one of the biggest banking scams in India's recovery officer has been assigned the task of taking action on the attachment order, issued on June 4 by the financial agency's Mumbai action against the fugitive diamond merchant had been initiated due to the non-payment of a Rs 1.5 crore penalty imposed by Sebi on January 31, 2022. Sebi went ahead with the attachment as it believed that Choksi might dispose of funds, thus obstructing the recovery of the total dues amounting to Rs 2.10 who has been wanted in India since 2018, was arrested in Belgium in April. His arrest, which took place on April 12, was made by Belgian authorities after a request from Indian agencies like the Central Bureau of Investigation (CBI) and the Enforcement Directorate (ED).He was detained in a hospital in Belgium, where he was said to be receiving medical PNB SCAMThe Rs 13,850-crore PNB scam involved Choksi and his nephew Nirav Modi, who is currently languishing in a jail in the UK and is soon to be extradited to they were able to take loans from foreign banks using Letters of Undertaking (LoUs) issued by PNB's Brady House branch in Mumbai. An LoU is a bank guarantee which allows customers to get short-term credit from overseas 2011 to 2018, Choksi, Modi and their companies used these LoUs without following the normal procedures. Some bank officials were involved and allowed the LoUs to be issued without entering them into the bank's main system. This helped the fraud go unnoticed for funds, which were shown as being used for importing goods, were mostly never returned. Instead, new LoUs were taken to repay the earlier ones, and the money was used for business and personal total value of the fraud reached around Rs 13,850 crore. Out of this, Nirav Modi's companies were linked to Rs 6,498 crore and Choksi's Gitanjali Group to Rs 6,097 crore. The remaining amount includes interest and other Watch IN THIS STORY#Mumbai Indians
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Business Standard
19-05-2025
- Business
- Business Standard
Sebi orders Mehul Choksi to pay ₹2.1 crore for insider trading breach
India's market regulator, the Securities and Exchange Board of India (Sebi), has issued a notice to Mehul Choksi, asking him to pay ₹2.1 crore for violating insider trading rules related to Gitanjali Gems Ltd, according to a PTI report. Sebi warned that if the amount is not paid within 15 days, it will initiate proceedings to seize his properties and bank accounts. The notice, dated 15 May, includes a penalty of ₹1.5 crore and interest of ₹60 lakh. Sebi stated that if Choksi fails to comply, the recovery will be made by attaching and selling his movable and immovable assets. His bank accounts may also be frozen, and he could face arrest. This action follows Choksi's failure to pay a fine imposed in January 2022. The PNB scam Choksi, who was chairman, managing director, and promoter of Gitanjali Gems, is also the maternal uncle of Nirav Modi. Both men are accused of defrauding Punjab National Bank (PNB) of over ₹14,000 crore. They fled India after the scam came to light in early 2018. Choksi has been living in Antigua since 2018. Last year, he travelled to Belgium citing medical treatment. He was arrested there last month following an extradition request from Indian authorities. Nirav Modi was arrested by Scotland Yard in March 2019 and remains in custody in the UK. Insider trading case In its January 2022 order, Sebi found that Choksi had passed on confidential company information—classified as Unpublished Price Sensitive Information (UPSI)—to Rakesh Girdharlal Gajera. Gajera subsequently sold his 5.75 per cent stake in Gitanjali Gems in December 2017, just before news about fraudulent Letters of Undertaking (LoUs) became public. These LoUs were fraudulently issued for companies under the Gitanjali Group, including Gitanjali Gems Ltd. 'Noticee No. 1, Choksi, was found to have communicated UPSI to Noticee No. 2 (Gajera) without any underlying legal obligation or legitimate purpose,' Sebi said in its final order. Sebi concluded that both Choksi and Gajera violated the Prohibition of Insider Trading (PIT) regulations. This is not the first time Sebi has taken action against Choksi. In May 2023, the regulator issued a separate notice demanding ₹5.35 crore for alleged fraudulent trading in Gitanjali Gems shares. Another fraud case and non-bailable warrant Separately, earlier this month, a Mumbai court issued a non-bailable warrant against Choksi in a 2022 bank fraud case, where he and others are accused of defrauding a consortium of banks—Canara Bank and Bank of Maharashtra—of ₹55.27 crore. The Central Bureau of Investigation (CBI) registered a case in July 2022 after a complaint from a senior Canara Bank official. The case involves Bezel Jewellery (India) Private Limited, where Choksi and three others served as directors. They allegedly conducted fake transactions and defaulted on repayments, diverting and misusing funds.
Hindustan Times
29-04-2025
- Business
- Hindustan Times
Mehul Choksi files fresh plea, accuses Belgian authorities of violating natural justice
Fugitive diamantaire Mehul Choksi has filed a fresh plea before the Belgian Court of Appeal, seeking relief against India's request for his extradition. He also accused Belgian authorities of violating the principles of natural justice. In his latest plea, submitted by his Belgian legal team and drafted by Advocate Vijay Aggarwal, Choksi claimed that Belgian authorities failed to adhere to prescribed legal procedures at the time of his arrest, news agency ANI reported. He argued that officials not only disregarded the due process but also violated his fundamental rights, breaching the principles of natural justice. Citing irregularities in the arrest procedures, Choksi demanded his immediate release. However, the court adjourned the hearing on his petition against his arrest. The development comes just days after the fugitive diamond merchant's bail plea was rejected by the Belgian Court of Appeal. Choksi is the key accused in the ₹13,500 crore Punjab National Bank (PNB) scam, along with his nephew Nirav Modi. It is alleged that the two used fraudulent Letters of Undertaking (LoUs) to obtain overseas credit or loans from Indian banks. In his second plea before the Belgian court, Choksi claimed that his arrest procedure was arbitrary and unlawful. Earlier in April, Belgian authorities arrested Mehul Choksi on an extradition request made by Indian agencies over the bank fraud. Choksi's lawyer, Vijay Aggarwal, speaking to ANI, expressed disappointment over the court's decision. However, he took note that the Belgian law allows for multiple bail pleas. "Unfortunately, my client has been denied bail today. However, in Belgium, we can apply for bail as many times as needed. We will carefully consider the court's observations and submit a fresh bail plea on new grounds soon", he said. Aggarwal reiterated that the legal team will contest the fugitive diamantaire's extradition mainly on two grounds -- the case's political nature, and his medical condition and treatment in India. Earlier, the lawyer had reportedly said that Choksi cooperated with Indian investigative agencies and has consistently offered to join their probe via video conferencing due to his health issues. Aggarwal also said that the previous attempts to extradite Choksi from Dominica had failed, noting that the Indian fugitive businessman had been under medical care in Antigua before travelling to Belgium for cancer care.
