A report claims that had the cops taken action, then Mehul Choksi would not have escaped abroad
In the middle of the controversy surrounding the PNB fraud that involves jeweller Nirav Modi and his uncle Mehul Choksi, it has been reported that the Bengaluru police had failed to enforce a court’s order to impound Choksi’s passport in another cheating case. Had the cops taken proper action, then Choksi would not have been able to escape.
According to the Mumbai Mirror report, the Bengaluru police filed a closure report (B report) in a cheating case filed by a local jeweller against Choksi in 2015 and did not bother to enforce a court’s order to impound Choksi’s passport (which was the main condition for granting him bail in the case).
At the time, two FIRs were registered against Choksi for allegedly cheating Bengaluru-based jeweler SV Hariprasad of Rs 10.48 crore. According to the complaint, Choksi, who teamed up with Hariprasad to start Gitanjali Jewellers in Bengaluru, allegedly did not honour the agreement, supplied substandard stock, defaulted on the rent and other expenses to be borne by him.
However, in July 2015, the cops filed a closure report and did not bother about enforcing the court’s order of impounding Choksi’s passport.
Recently, a special CBI court issued non-bailable warrants against Modi and Choksi.
CBI had written to Modi and Choksi to join investigations on their official e-mail ids but they have refused to come, citing business engagements and health issues.
The issuance of warrants also opens door of seeking red corner notices against both from the Interpol.
The government has claimed to have tracked Nirav in Hong Kong where it has sent a request for his provisional arrest.
CBI is questioning officials of overseas branches of Indian banks which had extended credit facilities to their companies on the basis of fraudulent Letters of Undertaking (LoUs) issued by PNB's Brady House branch in Mumbai.
The agency has also summoned the official who handled foreign exchange transactions in the Hong Kong branch of the Allahabad Bank.
Several bank employees have been booked for collusion in the case.
A LoU is a guarantee which is given by an issuing bank to Indian banks having branches abroad to grant a short-term credit to the applicant. In case of default, the bank issuing the LoU has to pay the liability to the credit giving bank along with accruing interest.
The CBI had approached the Interpol with a request for issuing 'Diffusion Notice' which was aimed at locating an individual.
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