Udayavni Special

PNB scam: Nirav Modi declared as fugitive economic offender


PTI, Dec 5, 2019, 1:02 PM IST

Mumbai: A special court here on Thursday declared diamond businessman Nirav Modi, the key accused in the USD 2 billion Punjab National Bank (PNB) fraud case, a fugitive economic offender, on a plea of the Enforcement Directorate.

He is the second businessman after liquor tycoon Vijay Mallya to be declared a fugitive economic offender under provisions of the Fugitive Economic Offenders (FEO) Act which came into existence in August last year.

Special PMLA court Judge V C Barde declared Nirav Modi a fugitive economic offender after hearing extensive arguments of lawyers of the diamantaire and the Enforcement Directorate (ED).

Nirav Modi had earlier urged the court here to set aside the ED’s plea to declare him an FEO.

Modi and his uncle Mehul Choksi are the main accused in the PNB scam and they both left India before details of the fraud came to light in January 2018.

Nirav Modi was arrested in London in March this year and his extradition process is pending.

In July 2018, the central agency filed an application under the newly-promulgated FEO Act to declare him a fugitive economic offender.

His lawyer earlier claimed that the ED was relying on evidence and statements recorded under the Prevention of Money Laundering (PMLA) Act to seek a remedy under the FEO Act.

This was not permissible under the FEO Act, he said.

As per the investigating agency, Nirav Modi and his uncle Choksi, in connivance with certain bank officials, allegedly cheated the PNB to the tune of Rs 14,000 crore through issuance of fraudulent Letters of Undertaking (LoUs).

These LoUs were allegedly issued in a fraudulent manner by a Mumbai branch of the PNB to the group of companies belonging to Nirav Modi since March 2011, till the case came to light.

Under the FEO Act, a person can be declared a fugitive economic offender if a warrant has been issued against him for an offence involving an amount of Rs 100 crore or more and he has left the country and refuses to return.

Udayavani is now on Telegram. Click here to join our channel and stay updated with the latest news.

Top News

Congress-JD(S) join hands for Mysuru Mayoral polls, keep BJP out of power

Australia passes landmark law requiring tech giants to pay for news

Golf without Woods? Battered leg brings it closer to reality

Hassan: Bendekere villagers kill leopard, know why

RSS worker murder: 8 SDPI activists held

Biden lifts Trump-era ban blocking legal immigration to US

Ker-K’taka border regulations: DC temporarily lifts restrictions, to set-up covid testing centres soon



Related Articles More

RSS worker murder: 8 SDPI activists held

Flight passengers from K’taka, 3 other states need to produce negative COVID-19 report: Bengal govt

‘Credibility of made-in-India vaccines evident in their high demand’

Army likely to start using SAI for internal communications from April 1

PM reviews projects worth Rs 44,545 crore in ‘Pragati’ meeting

MUST WATCH

Mangaluru: Police arrest four for ATM skimming

Drama performer invokes Goddess Chamundi? Video viral

Mangaluru: Kudroli Ganesh wows audience with magic show

Listen to the story by Dr. Gururaj Karjagi on the concept of ‘Joy of Giving’. Part-1

Fraudsters fool in the name of help, loot Rs. 70,000 | Udayavani

Latest Additions

Congress-JD(S) join hands for Mysuru Mayoral polls, keep BJP out of power

Australia passes landmark law requiring tech giants to pay for news

Golf without Woods? Battered leg brings it closer to reality

Hassan: Bendekere villagers kill leopard, know why

RSS worker murder: 8 SDPI activists held

Thanks for visiting Udayavani

You seem to have an Ad Blocker on.
To continue reading, please turn it off or whitelist Udayavani.