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PNB Fraud: ED Files Chargesheet Against Mehul Choksi Under Prevention of Money Laundering Act

The chargesheet has been filed a day after when Choksi moved an application before the special court of CBI for quashing of non-bailable warrant

Updated: June 28, 2018 4:52 PM IST

By Business Desk

Mehul Choksi

Enforcement Directorate (ED) has filed a chargesheet against Mehul Choksi, Gitanjali Gems owner, under Prevention of Money Laundering Act (PMLA). Apart from Mehul Choksi, 13 other entities (8 individuals and 5 companies) have been charged under section 4 of  the PMLA Act

The press release issued by ED states, “Three companies of Mehul Choksi namely Gitanjali Gems Ltd, Gili India Ltd and Nakshatra Brand Ltd have got fraudulently issued LOUs to the tune of  Rs 3011.39 crore and fraudulently got the credit limits of FLCs enhanced to the tune of Rs  3086.24 crore. The total proceeds of crime in this case is  Rs 6097.63 crore.”

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During the investigation, it is revealed that funds of LOUs were siphoned off through their alleged overseas suppliers -4C’s Diamonds Distributors HK,  Shanyang Gong SI Limited HK,  Asian Diamonds and Jewellery FZE, UAE, Gitanjali Ventures DMCC, UAE and Abbeycrest(Thailand)Limited.

S Abbot, counsel of Mehul Choksi said about the non-bailable warrant issued against Choksi, “My client replied to CBI that his passport has been revoked and he has security threats also. Court has asked CBI to file reply. Matter has been fixed for arguments on July 23. We’ve filed application on legal grounds that Non-bailable warrant wasn’t supposed to be issued.”

He told ANI, “There are more than 10 grounds, mainly medical grounds on which we have approached court. Secondly, CBI said he isn’t replying but my client has replied on each and every notice.

Choksi in his application had said that his life was in grave danger considering the recent trend of ‘mob lynching’ in India. Choksi had two non-bailable warrants issued against him in the month of April and May.

In his plea, Choksi said,”It is most respectfully submitted that there have been various reported cases of mob lynching and one of the cases was in relation to an accused who was mob lynched while being inside a jail. This recent trend of mob lynching is growing and is attempting to giving justice on the road by the general public, and subsequently, there is no prosecution because of non-identification of a particular individual is giving rise to the said tendency.”

Choksi is his application also said that he always responded to the summons received from the Central Bureau of Investigation (CBI) or any other investigating agency.

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