One of the key convicts in PNB bank fraud case, Mehul Choksi was granted time extension till 30th October by a special court on Wednesday to reply to an Enforcement Directorate (ED) plea declaring him a “fugitive” under a new ordinance.
As per the Fugitive Economic Offender Ordinance, the ED can seize all the assets as “property obtained” as soon as the accused declared himself an offender. Recently, Mehul Choksi was presented before Special Prevention of Money Laundering Act (PMLA) court on September 26 as ED appealed to proclaim him an offender under the law.
The court was adjourned till 30th October after Choksi’s lawyer, Sanjay Abbot requested judge M.S Azmi some time to file a reply. The financial crime agency wanted to pronounce Mehul Choksi and Nirav Modi “fugitive economic offenders” and take over their assets worth ₹3,500 crores against PNB fraud of ₹ ₹14,400 crores, reported live mint.
ED’s Investigation under PNB bank fraud case.
- Nirav Modi and his uncle, Mehul Choksi are both wanted by the Central Bureau of Investigation (CBI) and ED against a money laundering case of ₹14,300 involving Punjab National Bank.
- PNB reported the scam to crime branch as soon as it was detected in January 2018.
- ED is seeking immediate confiscation of assets located in UK and UAE.
- The law discourages all the economic offenders and seeks speedy recovery of losses made by the offenders.