Mehul Choksi and Nirav Modi are conveniently evading Indian law, by refusing to return to home turf. If this continues then the PNB fraud will never come to trial. It’ll be good to see law extending a reprimanding arm overseas.
On 7th March Mehul Choksi wrote to CBI that he wouldn’t be able to return to the country. He cited a number of reasons. He wrote in his reply to CBI that a bias has been created against him because of the media and political voices. Choksi revealed that he is facing threats from business allies, creditors and others affected by the closure of his business. Moreover, he claimed that he will not get his choice of doctor to be treated and that hospitals in India aren’t adequate and also wrote about his heart condition. He didn’t stop there he also said that his passport has been revoked which stopped him from returning.
Nirav Modi too has been out of the country and may not return anytime soon. Both Modi and Choksi are facing $3 billion in potential write-offs. CBI has arrested 19 people with regard to the case. Modi’s businesses owe PNB some 6,500 crores worth of rupees, and Choksi owes 6,138 to its lenders. Both their assets have been seized and this prevents them from paying their employees too. When Choksi said he couldn’t return to India the Gitanjali Gems stocks fell quickly. The stocks fell by 4.82% and have been at the level of 15.80 on the BSE. At the NSE, the stock trading was occurring at a 4.83% drop and the 15.75 level on 8th March.
The CBI so far has sent both of them three summons. The summons has been sent on February 9th, 23rd, and the 28th accordingly. They were asked to return by March 7th. Choksi’s passport has been suspended because it might be a ‘security threat to India’. Until they return there will be no progress on the case.