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been charged t</a>hrough criminal proceedings by both CBI and Enforcement Directorate (ED).In 2018, the CBI had first named Choksi and his firms including Gitanjali following a complaint by Punjab National Bank (PNB) for issuing fraudulent Letters of Undertaking in their favour. It was like robbing a bank, causing immense losses to the bank.Later the ED also filed a complaint alleging that Choksi was also involved in money-laundering the proceeds of crime in overseas accounts. Choksi has been booked under the Prevention of Money Laundering Act. A similar case was filed against his nephew Nirav Modi.In December 2019, a special court had declared that Choksi’s nephew Nirav Modi was a ‘fugitive economic offender’. Choksi managed to get the proceedings against him stayed by the Bombay High Court.Choksi’s lawyers approached the court and alleged that there were procedural flaws in the ED affidavit that were filed before the special court. Choksi’s lawyers said made a plea that until the ED replies on other pending applications, the final order cannot be passed.The High Court in January last year directed the special court to not pass a final order pending the hearing before it.<h1 id="4e7a">The running away of Choksi to Antigua and Barbuda</h1>In 2017, Choksi knew that he could be caught for robbing the bank multiple times, so he applied for citizenship in Antigua and Barbuda under the island nation’s Citizenship by taking an Investment program and becoming a citizen of the country in 2018.Choksi was summoned by the CBI and Enforcement directorate in India but he did not bother to come even though he was presented with a none-bailable warrant in his name. He was also summoned with warrants, but he appealed to the Prime Minister of the islands who promised to help India in the matter.He kept living in Antigua, even though Indian agencies had an Interpol Red Notice issued against him and an extradition request was sent to Antigua.<h1 id="e78e">Choksi flees to Cuba</h1>Choksi decided to flee from Antigua and Barbuda to Cuba so that he would be able to avoid being extradited to India. Cuba does not have an extradition agreement with India, It was impossible for India to get him from there. However, he was captured by Dominican authorities when he was moving to Cuba.The authorities in Antigua are already prepared to revoke his citizenship and were in a legal battle with him.<h1 id="ddf0">The position of Choksi’s case now</h1>Choksi<a href="https://indianexpress.com/article/india/antigua-and-barbuda-prefers-repatriation-of-choksi-from-dominica-to-india-directly-local-media-7342865/"> had mysteriously gone missing on May 23 f</a>rom Antigua and Barbuda where he was staying since 2018 as a citizen.<p id="d996"

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It is rumored that a woman, named Barbara Jarabica from Bulgaria, had been meeting Choksi for the past six months. She had befriended Choksi and was seen with him on his morning walks and was part of his abduction plan, and had helped in whisking him away in a yacht to Dominica.Choksi’s family registered a missing complaint about him with Antigua police. on May 25, Dominica police made a statement that he had been arrested for illegally entering their country.Choksi’s legal team filed a habeas corpus petition in a Dominican court, that Choksi did not go missing but that he was abducted and tortured and taken to Dominica.Mehul Choksi has been arrested in the Caribbean country of Dominica. He has revealed that he was intercepted by an Indian operation and brought back en route from Cuba to Dominica.The pictures of Choksi with bloodshot eyes and multiple bruises on the body were all over the Caribbean media. Choksi has been admitted to Dominica China Friendship Hospital. Pictures of Jarabica, clad in a two-piece on a Caribbean beach, were also put out in the local media.The government of India has not denied any of these allegations so far. In the meantime, a team of officials, from CBI and the Ministry of External Affairs, left for Dominica to bring back Choksi.<h1 id="81b3">To Conclude</h1>Antiguan Prime Minister Gaston Browne confirmed that an Indian jet had landed in Dominica to take Choksi back to India. He said that Choksi had left Antigua “with his girlfriend” and had committed a “monumental error”, as Antigua would not now accept him and would rather permit India to take him away.Choksi has become Dominica’s problem now. If he goes to Antigua, the problem reverts to Antigua and Barbuda because he is still their citizen and no longer an Indian citizen.Choksi is now in the custody of Dominique and they are making every effort to send him back to India. His next court hearing there is June 14.He has pleaded that the charges against him are false and he did not enter illegally in the country but was abducted and taken there.Choksi’s lawyers are arguing that he cannot be brought back to India, since he is an Antiguan citizen.Choksi is extremely clever. He has been avoiding the Indian authorities. Let us wait and watch and see the events now.What happens to Mehul Choksi is yet to be seen.Moral of the story: People defrauding others beware. The hand of the law is long! They can kidnap and abduct you anywhere. He once looted the bank. He is now on the run.©<a href="https://readmedium.com/dc34b46c1343?source=post_page-----f9fa88a300ef--------------------------------">Dr. Preeti Singh</a>, 2021. All rights are reserved by the author.</article></body>

BUSINESS|FRAUD

The Diamond Merchant Who Looted The Bank And Fled The Country

Now he is a man on the run

One of India’s biggest jewelers who looted the bank was born in Bombay in 1959.

Mehul Choksi started his career in the gems and jewelry sector in1975. He inherited his father’s business in 1985 and owns Gitanjali Group and Gitanjali Gems. He is married and has a son and two daughters.

He started with rough and polished diamonds. He wanted to be the world’s largest known branded jeweler. He was able to get Aishwarya Rai the famous Bollywood actress for endorsing his product. In 2018 the revenue of Gitanjali jewels was Rs125 Billion. He owns 4,000 stores in India

The Bank Fraud

India’s Punjab National Bank (PNB), the second-biggest public sector lender, shocked the people of India with the news in 2018 that Mehul Choksi had made fraudulent transactions worth $1.77 billion (about Rs11,400 crore) at a single branch in Mumbai. This fraud was one of the biggest bank frauds in India.

The fraud was discovered when some representatives from Choksi’s office brought documents and requested to be paid through buyers' credit to be made. The bank stated that there should be a collateral amount for payment. The bank would issue a letter of undertaking for payment (LOU). The merchants stated that payment was made earlier also without any collateral.

Punjab National Bank checked its past transactions and did not find any transactions in its records. However, it did find that such LOU’s had been issued directly through SWIFT for international transactions without recording it in any internal documents of the bank.

This was a complete daylight bank robbery that had gone on for years without the knowledge of the bank and with the help of some junior bank employees.

Charges faced by Choksi

Choksi has been charged through criminal proceedings by both CBI and Enforcement Directorate (ED).

In 2018, the CBI had first named Choksi and his firms including Gitanjali following a complaint by Punjab National Bank (PNB) for issuing fraudulent Letters of Undertaking in their favour. It was like robbing a bank, causing immense losses to the bank.

Later the ED also filed a complaint alleging that Choksi was also involved in money-laundering the proceeds of crime in overseas accounts. Choksi has been booked under the Prevention of Money Laundering Act. A similar case was filed against his nephew Nirav Modi.

In December 2019, a special court had declared that Choksi’s nephew Nirav Modi was a ‘fugitive economic offender’. Choksi managed to get the proceedings against him stayed by the Bombay High Court.

Choksi’s lawyers approached the court and alleged that there were procedural flaws in the ED affidavit that were filed before the special court. Choksi’s lawyers said made a plea that until the ED replies on other pending applications, the final order cannot be passed.

The High Court in January last year directed the special court to not pass a final order pending the hearing before it.

The running away of Choksi to Antigua and Barbuda

In 2017, Choksi knew that he could be caught for robbing the bank multiple times, so he applied for citizenship in Antigua and Barbuda under the island nation’s Citizenship by taking an Investment program and becoming a citizen of the country in 2018.

Choksi was summoned by the CBI and Enforcement directorate in India but he did not bother to come even though he was presented with a none-bailable warrant in his name. He was also summoned with warrants, but he appealed to the Prime Minister of the islands who promised to help India in the matter.

He kept living in Antigua, even though Indian agencies had an Interpol Red Notice issued against him and an extradition request was sent to Antigua.

Choksi flees to Cuba

Choksi decided to flee from Antigua and Barbuda to Cuba so that he would be able to avoid being extradited to India. Cuba does not have an extradition agreement with India, It was impossible for India to get him from there. However, he was captured by Dominican authorities when he was moving to Cuba.

The authorities in Antigua are already prepared to revoke his citizenship and were in a legal battle with him.

The position of Choksi’s case now

Choksi had mysteriously gone missing on May 23 from Antigua and Barbuda where he was staying since 2018 as a citizen.

It is rumored that a woman, named Barbara Jarabica from Bulgaria, had been meeting Choksi for the past six months. She had befriended Choksi and was seen with him on his morning walks and was part of his abduction plan, and had helped in whisking him away in a yacht to Dominica.

Choksi’s family registered a missing complaint about him with Antigua police. on May 25, Dominica police made a statement that he had been arrested for illegally entering their country.

Choksi’s legal team filed a habeas corpus petition in a Dominican court, that Choksi did not go missing but that he was abducted and tortured and taken to Dominica.

Mehul Choksi has been arrested in the Caribbean country of Dominica. He has revealed that he was intercepted by an Indian operation and brought back en route from Cuba to Dominica.

The pictures of Choksi with bloodshot eyes and multiple bruises on the body were all over the Caribbean media. Choksi has been admitted to Dominica China Friendship Hospital. Pictures of Jarabica, clad in a two-piece on a Caribbean beach, were also put out in the local media.

The government of India has not denied any of these allegations so far. In the meantime, a team of officials, from CBI and the Ministry of External Affairs, left for Dominica to bring back Choksi.

To Conclude

Antiguan Prime Minister Gaston Browne confirmed that an Indian jet had landed in Dominica to take Choksi back to India. He said that Choksi had left Antigua “with his girlfriend” and had committed a “monumental error”, as Antigua would not now accept him and would rather permit India to take him away.

Choksi has become Dominica’s problem now. If he goes to Antigua, the problem reverts to Antigua and Barbuda because he is still their citizen and no longer an Indian citizen.

Choksi is now in the custody of Dominique and they are making every effort to send him back to India. His next court hearing there is June 14.

He has pleaded that the charges against him are false and he did not enter illegally in the country but was abducted and taken there.

Choksi’s lawyers are arguing that he cannot be brought back to India, since he is an Antiguan citizen.

Choksi is extremely clever. He has been avoiding the Indian authorities. Let us wait and watch and see the events now.

What happens to Mehul Choksi is yet to be seen.

Moral of the story: People defrauding others beware. The hand of the law is long! They can kidnap and abduct you anywhere. He once looted the bank. He is now on the run.