The Enforcement Directorate (ED) on Monday filed a prosecution complaint (charge sheet) against absconding diamantaire Mehul Choksi and his wife in the ₹13,578-crore Punjab National Bank (PNB) fraud case.
This is the third charge sheet filed by the Central agency but the first one that names Choksi's wife Priti Pradyotkumar Kothari which was submitted before a special court in Mumbai.
The complaint also names Choksi, his three companies — Gitanjali Gems Limited, Gili India Limited and Nakshatra Brand Limited. It names Gokulnath Shetty, retired deputy manager of the PNB, for issuance of fraudulent letters of understanding (LoUs).
As per the ED, Ms. Kothari was "hand in glove with her husband in getting companies incorporated for him for laundering and siphoning off proceeds of crime and utilising and projecting them as untainted. She was aware of the source of monies which were being routed/siphoned off by her husband illegally and fraudulently. She was abettor of the crime, thereby being actually involved in the laundering of proceeds of crime...," the ED contends.
In its first complaint, the ED had mentioned that Miten Pandya, Manager, Finance, of Firestar International Limited (owned by nephew Nirav Modi), used to approach the PNB for issuance of LoUs worth around ₹100-150 crore for Choksi and approximately ₹5,000 crore worth LoUs for Modi’s companies.
The second complaint states that on receipt of the financial literacy application, the bank paid enhanced funds to overseas firms, namely 4 C’s Diamond Distributors and Crown Aim Limited (both located in Hong Kong), which are actually controlled by Choksi. In addition, there are several other dummy companies controlled by Choksi in Dubai and Hong Kong which were used for layering and rotation of such funds.
Fugitive economic offender
On July 10, 2018, the ED filed an application before the special court to declare Choksi a fugitive economic offender (FEO) who is reportedly living in Dominica. On December 5, 2019, Modi was declared a FEO in the same case.
The ED recorded a case of money laundering against Choksi on February 16, 2018 on the basis of FIR registered by the Central Bureau of Investigation under criminal conspiracy and cheating and dishonestly inducing delivery of property of the Indian Penal Code, read with the Prevention of Corruption Act.
