<p>The arrest of fugitive Indian diamond trader Mehul Choksi in Belgium, on April 12, marks a victory for India’s investigating agencies in their efforts to bring him back to the country and have him face the law. Choksi – accused of defrauding the Punjab National Bank of over Rs 13,000 crore, allegedly in connivance with bank officials and others – faces charges of cheating, breach of trust and money laundering. He and his nephew, co-accused Nirav Modi, fled India before the fraud became public. They used fraudulent Letters of Undertaking by PNB officials to raise loans and siphoned off funds to overseas accounts. The scam prompted the banking sector to undertake several reforms and strengthen internal checks to improve oversight.</p>.<p>Nirav Modi was arrested in the UK in 2019 and remains in custody there. He has mounted a legal battle to stall his extradition on one ground or the other. Choksi will also try to avoid extradition. He had fled to Antigua and Barbuda in the Caribbean region, where he secured citizenship under an investment programme. Choksi had planned his fraud and escape routes in detail and would now have a plan to legally resist his extradition. Europe’s extradition proceedings are complex and are based on the best human rights considerations. These considerations are certainly important. The Indian officials will need to convince the European authorities of Choksi’s role in economic offences of a high order. He is undergoing treatment for cancer and will have the ready ground of ill health to plead. The familiar argument about the poor conditions of Indian jails will also be presented. Choksi has alleged in the past that he was abducted by Indian agents and will try to play the victim. Indian investigative agencies will have to counter these tactics effectively.</p>.How Mehul Choksi, Nirav Modi pulled off one of India's biggest scams.<p>The Fugitive Economic Offenders Act was enacted by the government after the escape of Nirav Modi and Choksi from India. The effectiveness of the law will be seriously tested in the procedures of Choksi’s extradition. But it should be noted that a plea of the Enforcement Directorate (ED) to declare Choksi a “fugitive economic offender” and to confiscate his assets under provisions of the Act is pending before a Mumbai court for seven years. Choksi can oppose his extradition stating that he is no fugitive offender. Nirav Modi should also be brought to the country to face the process of justice. Fraudsters who remain out of the law’s reach in foreign countries will be symbols of the country’s failure in punishing those who subvert the system to misappropriate public funds.</p><p><em>Disclaimer: The views expressed above are the author's own. They do not necessarily reflect the views of DH.</em></p>
<p>The arrest of fugitive Indian diamond trader Mehul Choksi in Belgium, on April 12, marks a victory for India’s investigating agencies in their efforts to bring him back to the country and have him face the law. Choksi – accused of defrauding the Punjab National Bank of over Rs 13,000 crore, allegedly in connivance with bank officials and others – faces charges of cheating, breach of trust and money laundering. He and his nephew, co-accused Nirav Modi, fled India before the fraud became public. They used fraudulent Letters of Undertaking by PNB officials to raise loans and siphoned off funds to overseas accounts. The scam prompted the banking sector to undertake several reforms and strengthen internal checks to improve oversight.</p>.<p>Nirav Modi was arrested in the UK in 2019 and remains in custody there. He has mounted a legal battle to stall his extradition on one ground or the other. Choksi will also try to avoid extradition. He had fled to Antigua and Barbuda in the Caribbean region, where he secured citizenship under an investment programme. Choksi had planned his fraud and escape routes in detail and would now have a plan to legally resist his extradition. Europe’s extradition proceedings are complex and are based on the best human rights considerations. These considerations are certainly important. The Indian officials will need to convince the European authorities of Choksi’s role in economic offences of a high order. He is undergoing treatment for cancer and will have the ready ground of ill health to plead. The familiar argument about the poor conditions of Indian jails will also be presented. Choksi has alleged in the past that he was abducted by Indian agents and will try to play the victim. Indian investigative agencies will have to counter these tactics effectively.</p>.How Mehul Choksi, Nirav Modi pulled off one of India's biggest scams.<p>The Fugitive Economic Offenders Act was enacted by the government after the escape of Nirav Modi and Choksi from India. The effectiveness of the law will be seriously tested in the procedures of Choksi’s extradition. But it should be noted that a plea of the Enforcement Directorate (ED) to declare Choksi a “fugitive economic offender” and to confiscate his assets under provisions of the Act is pending before a Mumbai court for seven years. Choksi can oppose his extradition stating that he is no fugitive offender. Nirav Modi should also be brought to the country to face the process of justice. Fraudsters who remain out of the law’s reach in foreign countries will be symbols of the country’s failure in punishing those who subvert the system to misappropriate public funds.</p><p><em>Disclaimer: The views expressed above are the author's own. They do not necessarily reflect the views of DH.</em></p>
