Mehul Choksi claims innocence in PNB fraud with open letter

Agencies
February 25, 2018

Mumbai, Feb 25: Mehul Choksi, one of two businessmen allegedly involved in the Rs11,400 crore PNB fraud, broke his silence at the weekend with an open letter to employees claiming his innocence and telling them to look for other jobs.

Choksi and his nephew Nirav Modi, both owners of jewellery store chains, are suspected of colluding with two employees from Punjab National Bank, the country’s second-largest state lender, in the alleged $1.8 billion fraud.

The businessmen are said to have been issued with illegal letters of undertaking (LoUs) from PNB over a seven year period, and to have used them to get loans from overseas branches of other, mostly Indian banks.

Choksi, who owns Gitanjali Gems, told employees he did not want anyone to suffer due to an association with him, but that he was in no position to pay their salaries and they were free to look for other opportunities until he could prove himself innocent.

“With recent false allegations levelled against me of defrauding the PNB Bank and media frenzy, the situation has gone grave, which is turning graver by the day,” Choksi wrote in the letter sent to employees on Friday.

The PNB fraud, which came to light earlier this month, has shaken confidence in state-run lenders and turned the spotlight again on India’s deep-seated corruption problem.

At least a dozen people—six from the bank and six more from Modi’s and Choksi’s companies—have been arrested and the investigation is still continuing.

Modi, who according to Forbes magazine has a net worth of some $1.8 billion, owns Firestar International and a chain of eponymous boutique stores from New York to Beijing.

On Saturday, authorities seized a farmhouse, a solar power plant and land that belonged to him.

Also on Saturday, Enforcement Directorate (ED), which fights financial crimes, said on Twitter it had taken possession of 21 other properties belonging to Modi worth Rs524 crore in the latest swoop in Mumbai and Pune.

Earlier in the week, ED said it had seized luxury cars worth millions of rupees belonging to Modi.

A lawyer for Modi has denied his client was involved in any fraud.

Choksi’s firm, Gitanjali Gems, has also denied involvement in the PNB fraud.

Separately, police on Thursday registered a case against a Delhi-based jeweller on a fraud complaint filed by Oriental Bank of Commerce, another state-owned bank, a police source said.

The lender has alleged the firm, Dwarka Das Seth International, cheated the bank with the help of some of its officials, using letters of credit (LCs) — a loan instrument similar to those used by Modi’s and Choksi’s firms in the alleged fraud.

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Agencies
January 26,2020

Guwahati, Jan 26: Four powerful grenade explosions--three in Dibrugarh and one in Charaideo districts--rocked Assam Sunday morning as the country celebrated Republic Day, police said.

In Dibrugarh district, an explosion took place at Graham Bazar and another beside a gurudwara on A T Road, both under Dibrugarh police station.

Another explosion rocked the oil town of Duliajan whose details are still awaited, police said.

Another explosion rocked Teok Ghat under Sonari police station of Charaideo district, they said.

Senior officials have rushed to the explosion sites and details of casualty are awaited, police added.

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News Network
May 9,2020

May 9: Union Home Minister Amit Shah has said the West Bengal government is not allowing trains with migrant workers to reach the state that may further create hardship for the labourers.

In a letter to West Bengal Chief Minister Mamata Banerjee, Shah said not allowing trains to reach West Bengal is "injustice" to the migrant workers from the state.

Referring to the 'Shramik Special' trains being run by the central government to facilitate transport of migrant workers from different parts of the country to various destinations, the home minister said in the letter that the Centre has facilitated more than two lakh migrants workers to reach home.

Shah said migrant workers from West Bengal are also eager to reach home and the central government is also facilitating the train services.

"But we are not getting expected support from the West Bengal. The state government of West Bengal is not allowing the trains reaching to West Bengal. This is injustice with West Bengal migrant labourers. This will create further hardship for them," Shah wrote.

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News Network
July 5,2020

Ahmedabad, Jul 5: A woman police sub-inspector (PSI) with Ahmedabad Police was arrested and sent to three-day police remand, on Saturday, for allegedly accepting a bribe of Rs 20 lakh from an Ahmedabad-based businessman — accused in two rape cases — in exchange for not applying a stringent act against him.

According to police officials, Shweta Jadeja, PSI and incharge of Mahila police station (West) in the city, was arrested by a team of Detection of Crime Branch (DCB) officials in Ahmedabad on Friday after the complainant in the case, the rape accused, approached the Crime Branch and stated that Jadeja had allegedly demanded Rs 35 lakh form him, in exchange for not booking him under the Prevention of Anti-Social Activities (PASA) Act.

The PASA Act in Gujarat gives power to the police to detain an accused and send them to a prison away from their native district. The complainant claimed that he already paid Rs 20 lakh of the total amount to Jadeja on February 3.

On Saturday, a sessions court awarded Jadeja a three-day remand with the Crime Branch, which will end at 11:30 am on July 7. Following this, the PSI will undergo a medical check-up and be presented before the magistrate again.

“We had originally demanded a seven-day remand. The accused officer has been sent to three-day remand for further investigation in the case,” said a senior police official in Ahmedabad.

According to police, complainant Kenal Shah — managing director of GSP Crop Science Private Limited, a crop solution-based company in Ahmedabad — is allegedly facing two separate rape cases under IPC section 376.

PSI Jadeja was first entrusted with the investigation of a rape case against Shah in January this year, lodged at Mahila police station (West).

The rape case complaint is of 2019. Another rape case against Shah was being probed by Assistant Commissioner of Police (Crimes Against Women), Mini Josef, wherein the investigation was reportedly completed.

As per the remand application report filed by the police, Jadeja had allegedly threatened Shah through his brother Bhavesh Shah — a joint managing director at GSP Crop Science Private Limited — and initially demanded Rs 25 lakh for not applying the PASA Act against the accused. The bribe amount was then settled at Rs 20 lakh and in February, the accused allegedly paid the amount via an office accountant to one Jayubha, allegedly a representative of Jadeja, from a finance office in Jamjodhpur area of Ahmedabad.

The report further stated that after the initial amount was paid, a third complaint was allegedly made against Kenal by a security officer at his office, Yograjsinh, for criminal intimidation. After the third complaint, PSI Jadeja had contacted Bhavesh again and demanded an additional sum of Rs 15 lakh for not applying the PASA Act against Kenal. The complaint from the security officer was not converted into an FIR and Shah has not been jailed yet.

However, It was after the demand of Rs 15 lakh that complainant Kenal approached the Crime Branch on June 27. An FIR was lodged against Jadeja at Ahmedabad DCB police station under sections seven and twelve of the Prevention of Corruption Act, charging her for “public servant taking gratification other than legal remuneration in respect of an official act”.

“Now that we have received the remand of the accused officer from the court, we will try to trace and recover the alleged Rs 20 lakh amount she received in this case,” said Deepan Bhadran, Deputy Commissioner of Police, Ahmedabad.

Shweta Jadeja is a PSI of the 2016-’17 batch and a resident of Vastrapur in Ahmedabad, while her native place is in Keshod of Junagadh district. The police have not recovered the bribe amount she allegedly accepted as of late Saturday.

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