PNB fraud case: Court issues non-bailable warrants against Mehul Choksi, Nirav Modi

The special PMLA court has issued non bailable arrest warrants (NBWs) against Mehul Choksi , promoter of Gitanjali group, and his nephew Nirav Modi, owner of Firestar Diamonds.

Both the persons and their companies are accused by CBI Of causing a Rs 12,700 crore loss to PNB through fraudulent issue of letters of undertaking in cahoots with some of the bank's staff .

The NBWs mean Choksi and Modi can be declared proclaimed offenders which will enable their extradition once their whereabouts are established .


ED counsel Hiten Vaingaonkar said that though Modi had managed to ringfence his assets in the US by applying for bankruptcy protection for his flagship Firestone Inc, as and when his company's assets were frozen by the competent authority in the US , the letter rogatory issued by the PMLA court would be channeled to the concerned authority and help the government stake its claims over the assets .

We have to show there are proceeds of crime present in the US which is the case as LoUs issued by PNB favouring banks in the US is proved .

The scam was perpetrated jointly by PNB staff with Choksi and Modi's companies. The LOUs were guarantees issued by PNB ostensibly to pay overseas suppliers of Gitanjali and Firestar , which are suspected to be fronts of the two .