Nirav Modi declared fugitive economic offender by Mumbai Court

A Mumbai court on Thursday declared wanted diamantaire Nirav Modi a fugitive economic offender for evading persecution in the Punjab National Bank (PNB) scam following a plea by the Enforcement Directorate (ED).

The action was taken by the Prevention of Money Laundering Act ( PMLA) court which declared him a fugitive economic offender under the Fugitive Economic Offenders Act.

The Act allows for the confiscation of property of economic offenders who evade prosecution by staying outside the jurisdiction of Indian courts. It is aimed at stopping high-profile economic offenders who free the country to avoid legal action.

Nirav is presently in Wandsworth Prison, London, and is wanted for his alleged role in nearly Rs 13,570 crore Punjab National Bank (PNB) money-laundering and fraud case along with his uncle Mehul Choksi. He was arrested in March this year by Scotland Yard in connection with the case.

After Vijay Mallya, he is the second person to be charged under an anti-fraud law that was passed last year.

Nirav and his uncle Mehul are accused in a scam involving fake guarantees in the name of PNB to secure overseas loans. Both fled India last year before the CBI began investigations in the case.

Despite repeated summons from probe agencies and courts, they haven't returned to India.