In an affidavit filed before the Dominican High Court, India has cited evidence uncovered by investigative agencies to assert that fugitive diamond trader Mehul Choksi masterminded the Rs 13,500 crore PNB scam.

HIGHLIGHTS

• Choksi was arrested last month for illegally entering Dominica
• Mehul Choksi is one of the key accused in the Rs 13,500 crore Punjab National Bank (PNB) scam
• India has filed a plea before Dominican HC, seeking permission to join the probe against Choksi

Mehul Choksi masterminded the Rs 13,500 crore Punjab National Bank (PNB) scam, the Government of India told Dominican authorities. India Today TV has accessed exclusive details of the affidavit filed by India in the Dominican High Court hearing Mehul Choksi’s case.

The Dominican High Court on Saturday dismissed fugitive diamond trader Mehul Choksi’s bail plea. One of the key accused in the PNB scam, Choksi was arrested in Dominica last month for illegally entering the Caribbean nation.

Indian authorities have filed a petition before the high court in Dominica, seeking permission to join the case against Mehul Choksi. The affidavit is part of an impleadment application filed on behalf of the Central Bureau of Investigation (CBI) and the Ministry of External Affairs (MEA).

What does affidavit say

In the affidavit, Indian authorities have asserted that Mehul Choksi masterminded the PNB scam. The fugitive diamond trader conspired with bank officials to illegally obtain letters of undertaking (LoUs), says the affidavit.

Evidence uncovered by the Enforcement Directorate (ED) during its investigation of the PNB scam has also been included in the affidavit. The affidavit says that the ED found evidence pointing to the layering of funds and money laundering through dummy firms and market operators.

Layering of funds is a process to conceal the source of the money through a series of transactions.

The affidavit also includes allegations of ’round-tripping’, which, according to investigators, took place in a fraudulent manner in countries, including Dubai and Hong Kong, among others.

The process of ’round-tripping’ is a barter involving the sale of ‘unused assets’ by one company to another while at the same time buying back similar assets at about the same price.

In addition, the affidavit filed by India also mentions the ‘red corner’ notice issued against Mehul Choksi by Interpol. The notice was issued on the basis of a complaint made by the Government of India.

What next for Mehul Choksi

If India’s impleadment application is accepted, Harish Salve is likely to represent the CBI, ED and MEA in the Dominican High Court.

Indian officials from different agencies are in the UK to assist Harish Salve. Sources said a number of officials from multiple agencies are also in Dominica.

According to sources, the CBI and ED will focus on the Punjab National Bank (PNB) scam to establish Mehul Choksi’s fugitive status.

Meanwhile, the MEA will focus on Choksi’s Indian citizenship status. Referring to Mehul Choksi, the ministry said earlier that all efforts will be made to ensure that fugitives are brought back to India to face the law.

Who is Mehul Choksi

Mehul Choksi and his nephew Nirav Modi are wanted in India for allegedly siphoning Rs 13,500 crore of public money from the state-run Punjab National Bank (PNB) using fraudulently acquired letters of undertaking (LoUs).

Diamantaire Mehul Choksi went missing on May 23 from Antigua and Barbuda, where he had been staying as a citizen since 2018 after fleeing India. He was detained in Dominica on charges of illegal entry.

Earlier, a magistrate’s court in Dominica denied Mehul Choksi bail on June 2. He was then declared a “prohibited immigrant” in Dominica, a development likely to strengthen India’s case.

Sources said once the matter of Mehul Choksi’s illegal entry into Dominica concludes, he will have to be deported to the country of which he is a legal citizen