PNB fraud: Nirav Modi declared fugitive economic offender

MUMBAI: A special court here on Thursday declared diamond businessman Nirav Modi, the key accused in the Rs 13,500 crore Punjab National Bank (PNB) fraud case, a fugitive economic offender, on a plea of the Enforcement Directorate.

PNB fraud: Nirav Modi declared fugitive economic offender

File photo of Nirav Modi.

pardeepdhull@gmail.com

Mumbai, December 5

A special court here on Thursday declared diamond businessman Nirav Modi, the key accused in the Rs 13,500 crore Punjab National Bank (PNB) fraud case, a fugitive economic offender, on a plea of the Enforcement Directorate.

He is the second businessman after liquor tycoon Vijay Mallya to be declared a fugitive economic offender under provisions of the Fugitive Economic Offenders (FEO) Act which came into existence in August last year.

Special PMLA court Judge V C Barde declared Nirav Modi a fugitive economic offender after hearing extensive arguments of lawyers of the diamantaire and the Enforcement Directorate (ED).

Nirav Modi had earlier urged the court here to set aside the ED’s plea to declare him an FEO.

Modi and his uncle Mehul Choksi are the main accused in the PNB scam and they both left India before details of the fraud came to light in January 2018.

Nirav Modi was arrested in London in March this year and his extradition process is pending.

In July 2018, the central agency filed an application under the newly-promulgated FEO Act to declare him a fugitive economic offender.

His lawyer earlier claimed that the ED was relying on evidence and statements recorded under the Prevention of Money Laundering (PMLA) Act to seek a remedy under the FEO Act.

This was not permissible under the FEO Act, he said.

As per the investigating agency, Nirav Modi and his uncle Choksi, in connivance with certain bank officials, allegedly cheated the PNB to the tune of Rs 14,000 crore through issuance of fraudulent Letters of Undertaking (LoUs).

These LoUs were allegedly issued in a fraudulent manner by a Mumbai branch of the PNB to the group of companies belonging to Nirav Modi since March 2011, till the case came to light.

Under the FEO Act, a person can be declared a fugitive economic offender if a warrant has been issued against him for an offence involving an amount of Rs 100 crore or more and he has left the country and refuses to return. PTI

Cities

View All

Ban on hookah bars goes up in smoke

Police, Excise officials seize hookahs from restaurants

Doctors complain of heavy workload at Civil Hospital

Say they perform additional duties due to shortage of medica...

Locust attacks reported from Bathinda villages

Agri Dept alert, constantly observing its movement, says ADO

Cops tighten noose around Chinese kite string sellers

The Chinese and zinc-coated thread is dangerous not only for...

Padma Shri for ‘Langar Baba’, PGI doc

Jagdish Lal feeding hungry for 20 yrs, sold property to run ...

Soon, 9,310 dark spots to illuminate

Work of installing LED lights to begin in month, contractor ...

Civic body staff say no to cheque, bills say otherwise

People visiting offices to pay bills by cheque a harried lot

Vendors can station carts at vending zone sites: Mayor

No fee for now, vendors identified during survey will be eli...

Stones of 2 foot overbridges laid

To come up at Gurdwara Dukhniwaran Sahib, Kali Mata Mandir

R-Day: Education Minister to hoist National Flag today

School principals, teachers told to remain present at venue

Man held for illegal mining in SYL canal

Caught red-handed, another suspect to be nabbed soon, say co...