Mehul Choksi arrested in Belgium on India's extradition request
New Delhi (PTI): Absconding diamantaire Mehul Choksi has been arrested in Belgium following an extradition request by Indian probe agencies for his involvement in the Rs 13,000 crore PNB bank loan "fraud" case, official sources said on Monday.
The action against the second "prime suspect" in this case, after Choksi's nephew diamantaire Nirav Modi, was taken on Saturday based on an extradition request moved by the Central Bureau of Investigation (CBI) and the Enforcement Directorate (ED).
Choksi was located in Belgium last year when he went there on the grounds of getting medical treatment. He had been staying in Antigua since 2018 after leaving India.
Sources said the Interpol Red Notice against him for arrest was "deleted" sometime back and the Indian agencies were pursuing him via the extradition route since then.
At least two open-ended arrest warrants, issued by a special court in Mumbai in 2018 and 2021, have been shared by the Indian agencies with their Belgian counterparts as part of the extradition request, the sources said.
Formal paperwork is being done following the arrest/detention as Choksi may seek bail on health grounds, they said.
Choksi, Modi, their family members and employees, bank officials and others were booked by the CBI and the ED in 2018 for perpetrating the alleged loan fraud at the Brady House branch of the Punjab National Bank (PNB) in Mumbai.
It was alleged that Choksi, his firm Gitanjali Gems and others "committed the offence of cheating against PNB in connivance with certain bank officials by fraudulently getting the LOUs (letters of undertaking) issued and got the FLCs (foreign letter of credit) enhanced without following prescribed procedure and caused a wrongful loss to the bank".
The CBI has filed at least two chargesheets against him in this case while the ED has filed three such prosecution complaints.
Modi, declared a fugitive economic offender, has been lodged in a London jail since he was held by the authorities there in 2019 on the basis of a legal request made by the ED and the CBI in this case. He is contesting extradition to India.
According to the investigating agencies, officials at PNB's Brady House branch in Mumbai issued 165 LoUs and 58 FLCs during March-April 2017, against which 311 bills were discounted.
These LoUs and FLCs were allegedly issued to Choksi's firms without any sanctioned limit or cash margin and without making entries in PNB's central banking system to evade any scrutiny in case of a default.
LoUs are a guarantee given by a bank on behalf of its client to a foreign bank. If the client does not repay the foreign bank, the liability falls on the guarantor bank.
Based on these LoUs by PNB, money was lent by SBI, Mauritius; Allahabad Bank, Hong Kong; Axis Bank, Hong Kong; Bank of India, Antwerp; Canara Bank, Manama; and State Bank of India, Frankfurt.
"Since the accused companies did not repay the amount availed against the said fraudulent LoUs and FLCs, PNB made the payment of Rs 6,344.97 crore (USD 965.18 million), including the overdue interest, to the overseas banks, which had advanced buyer's credit and discounted the bills against the fraudulent LoUs and FLCs issued by the PNB," the CBI's supplementary charge sheet in the PNB bank fraud case alleged.
The ED has attached or seized assets worth Rs 2,565.90 crore in the case against Choksi and the court has allowed "monetisation" of all these properties.
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Another incident of alleged insult to Islamic prayer reported in Belthangady
case lodged against 47 individuals
Belthangady: Another incident involving individuals allegedly dancing indecently, dressed in a denigrating manner, and insulting the Azan (Islamic call to prayer) has come to light under the jurisdiction of the Venoor Police Station. A case has been lodged against 17 accused persons and 20 to 30 others who were allegedly involved in the act.
Based on a complaint filed by Mohammed Rafiq, a resident of Poyyegudde house in Padangady village, a case has been registered at Venoor police station against Savya residents Vasantha, Rajesh, Harish, Peradi residents Dayanand, Ranganath, Mohan, Shamit, Ravi, Ramesh Kulal, Suresh, Ashoka Kulal, Dhanush Haradottu, Harish Banthottu, Ramesh R.K, Suresh Barottu, Pramod, Prakash Peradi and 20 to 30 other individuals.
A case has been registered under Section 353(2) along with Section 3(5) Bharatiya Nyaya Sanhita 2023 for disrespecting Islam, Prophet Muhammad and the Islamic prayer Azhan by wearing Muslim attire during a 'Purusha Kattuna' event on April 14th.
A video of the incident is reportedly circulating on various social media platforms. In the purported video, a group of individuals can be seen wearing traditional Muslim attire and allegedly insulting the Azan by dancing indecently during a 'Purusha Kattuna' (a ritualistic dance performed by men of different castes, typically marking the end of agricultural activities) event held in Peradi near Venoor.
This incident follows a similar episode reported just days ago during a Purushara Puja ceremony, where Islam was allegedly disrespected. A complaint had already been filed with the Venoor police regarding that incident.
Leaders from the Social Democratic Party of India (SDPI) had also approached the Venoor police and submitted an official complaint, and demanded immediate action against those who are responsible for creating unrest in the society by wearing Muslim attire and hurting religious sentiments.
The Venoor police have now registered a case following widespread outrage over the alleged video denigrating Islam.
