PNB Scam: Non-bailable arrest warrants issued for Modi and Choksi
A special court, set up under the Prevention of Money Laundering Act, has issued non-bailable arrest warrants for diamond traders Nirav Modi and Mehul Choksi in the alleged Rs. 12,650 crore Punjab National Bank scam. The warrants were filed by the Enforcement Directorate which had earlier, on February 27, moved the court seeking non-bailable warrants. Here's more.
First off, how India's biggest scam unfolded
Nirav Modi, diamantaire to global celebrities, and uncle Mehul Choksi, Gitanjali Gems chairman, have been accused of defrauding PNB of Rs. 12,650cr. Firms linked to them allegedly acquired fraudulent letters of undertaking (LoUs) from PNB during 2011-17 and based on them, obtained loans from foreign branches of Indian banks. Modi, his family and Choksi left India weeks before the scam was detected last month.
Modi and Choksi had ignored three ED summons
The Enforcement Directorate had earlier issued three summons to Modi and Choksi, both key accused in the fraud case. The duo, who are believed to have left India before a criminal case was registered, failed to heed the ED's summons, following which the ED moved for non-bailable arrest warrants. The non-bailable warrants have the potential to aid in bringing the absconding Modi to justice.
How the non-bailable warrants aid the investigation
The non-bailable arrest warrants issued by the special PMLA court will facilitate the extradition of Nirav Modi and Mehul Choksi, once the whereabouts of the duo is uncovered. Additionally, it will also give the ED claim over Modi's properties in the US which are currently under freeze as Modi's flagship firm Firestar Inc has filed for bankruptcy in a US court.
