Mehul Choksi still an Indian citizen, will be extradited: Govt official

Fugitive jeweler Mehul Choksi, a main defendant in India's largest bank fraud case, is still an Indian citizen despite holding an Antigua and Barbuda passport, an Indian official told Reuters, adding the government is pushing for his extradition.
Choksi, who is one of the key people accused of defrauding Punjab National Bank of $2 billion, fled India before the accusations surfaced last year.

Bringing Choksi back to India would be a boon for Prime Minister Narendra Modi as he tries to bolster his anti-corruption credentials ahead of a general election due by May.
Choksi, along with his nephew, diamond tycoon Nirav Modi, are accused of colluding with a handful of bankers to secure credit from overseas banks using fraudulent guarantees. Both have denied the allegations and have moved abroad.
Choksi has secured a passport from Antigua and Barbuda, where wealthy foreigners can become citizens in exchange for investing in the country.
But Indian officials still consider him an Indian citizen, Venkatachalam Mahalingam, the Indian High Commissioner to Guyana and Non-Resident High Commissioner to Antigua and Barbuda as well as St. Kitts and Nevis, said in an interview in Georgetown last week.
"He has not renounced his Indian citizenship. We have revoked his passport, but that does not mean we have revoked his citizenship. We must agree if someone wants to renounce their citizenship; we have not agreed," Mahalingam said.
"You cannot commit some crime and run away from the country and (think) we'd allow you to renounce your citizenship. That would look really stupid."
India in August lodged an extradition request, which Mahalingam said Choksi was fighting.
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If all sides agree Choksi is Indian, he could potentially be extradited from Antigua using a Commonwealth-based agreement.
But his Antiguan citizenship complicates the situation even though India does not permit dual citizenship.
"He is ... entitled to the protection any citizen of Antigua and Barbuda is," Lionel Hurst, the chief of staff for the Antiguan Prime Minister's Office, told India Today TV in September.
'BROUGHT TO JUSTICE'
In January, Hurst told India Today the struggle over Choksi now depended on Antiguan courts, and warned the case could "last for a very long time".
Choksi in November also filed an application to a Mumbai court refuting that he was a fugitive and blaming "persisting medical conditions" for preventing him from returning to India, court documents show.
When asked whether Choksi remained an Indian citizen, Choksi's Mumbai-based lawyer Sanjay Abbot late last week confirmed that Choksi had surrendered his passport but directed questions on his citizenship to David Dorsett, a lawyer for Choksi in Antigua.
Dorsett did not respond to a request for comment.
In a separate case, the government is pursuing businessman Jatin Mehta regarding fraud allegations at his company, Winsome Diamonds and Jewellery Ltd.
India has requested that St. Kitts and Nevis, where Mehta is believed to be living, provisionally arrest him, Mahalingam said.
"Once that is done, extradition request will follow," he added.
Reuters was unable to contact Mehta. Officials in Antigua and Barbuda, as well as St. Kitts and Nevis, did not respond to requests for comment.
Modi said recently any corruption suspect would face justice "regardless of whether he is in India or abroad".
"Any person who has cheated or looted the country shall be brought to the justice," Modi said in a speech.

Rs 127 bn PNB scam: I fear for my safety, Mehul Choksi tells CBI in letter

Diamond merchant Mehul Choksi, co-accused in the Rs 127 billion Punjab National Bank (PNB) fraud, has said that "exaggerated" allegations by multiple investigating agencies has left him "completely defenceless" and that he feared for his safety to return home.
In a two-page March 16-dated letter to the Central Bureau of Investigation (CBI), Choksi denied he was a partner of Diamond R US, Stellar Diamond and Solar Exports.

These firms have been accused of conducting fraudulent transactions with Firestar International and Firestar Diamond International owned his nephew Nirav Modi, who is also an accused in the PNB fraud.
The companies were named by the CBI in an additional FIR filed on February 14. Choksi was summoned to appear before the CBI on March 16 for questioning in the case.
Reiterating that it was "impossible" for him to return to India, Choksi said his health condition was not conducive and that his passport remained suspended.
"Till date, the Regional Passport Office (in Mumbai) hasn't communicated with me and my passport remains suspended. I have the deepest respect for your offices and assure you that I am not making any excuse, whatsoever, to travel to India.
"I reiterate that I am abroad and have earlier also responded to your notices.
Surprisingly, the issues raised remain unaddressed, making my fear of safety rise to extreme levels."
He questioned the CBI move to name him in another case related to the bank fraud "knowing fully well that I have no concern whatsoever" with Diamond R US, Stellar Diamond, Solar Exports.
"I am neither a partner (of these firms) nor do I have any kind of association with the three concerns."
He said various actions by multiple agencies taken against him and "the manner in which the allegations have been exaggerated has left me completely defenceless".
"In any case", he said, "I am extremely held up in my business abroad and am working hard to resolves the issues it is facing due to the unnecessary closure of business in India due to untenable allegation." Choksi had left the country along with his nephew and other family members in January this year.
He said doctors had advised him "not travel for a period of four to six months".
"I am unable to travel to India due to my persisting health condition. In February 2018, a cardiac procedure was conducted and medical follow ups still remain and as the entire procedure could not be completed. The situation still remains," he said.

PNB scam: Choksi asks CBI how he is a security threat; top 10 developments

Mehul Choksi, the fugitive uncle of Punjab National Bank (PNB) diamantaire Nirav Modi and accused of defrauding the Public Sector bank (PSB) of Rs 124 billion, has said it was "impossible" for him to return to India because his passport has been suspended.
The owner of Gitanjali Gems criticised India's investigating agencies in a letter accusing them of abusing processes in probing the country's biggest banking fraud. In a letter dated March 7 and addressed to the Central Bureau of Investigation (CBI), Mehul Choksi asks rhetorically, 'How am I a security threat to India?''
Mehul Choksi's firm hit a 52-week low on the stock market on Thursday after the Enforcement Directorate (ED) attached assets worth Rs 12 billion belonging to Mehul Choksi. Furthermore, anti-fraud agency SFIO has recorded the statements of top banking executives from both the public and private sectors.

Here are the top 10 developments with regard to the PNB scam:
1. Mehul Choksi writes to the CBI:
In a letter to the Central Bureau of Investigation (CBI), one of the lead agencies probing the alleged loan fraud, the jeweller said the seizure of his assets, bank accounts and the shutting down of all his offices in India has caused prejudice against him.
The March 7 dated letter, which was reviewed by Reuters, said investigating agencies were acting with a pre-determined mind and interfering with the course of justice.
"It is impossible for me to travel back to India. I wish to point out that the Regional Passport Office Mumbai has not given me any explanation as to why my passport has been suspended and as to how I am a security threat to India," Choksi said in a letter to the CBI, which is probing the alleged fraud.
ALSO READ: The treadmill of business frauds: From 1957 LIC scandal to PNB scam
2. CBI registers fresh case against Nirav Modi:
The Punjab National Bank on Sunday filed a fresh complaint with the CBI alleging that three firms liked to diamantaire Nirav Modi's Firestar International- Solar Exports, Stellar Diamonds and Diamond R Us after spotting circular transactions between them. PNB also reported the same to the Reserve Bank of India (RBI)
The CBI, after examining the complaint, registered a fresh case against Nirav Modi for causing a loss of Rs 3.21 billion to PNB by availing different credit facilities between the years 2013 and 2017.
Firestar International finance chief Vipul Ambani and others among the top brass of the group have also been named in the latest PNB scam case.
ALSO READ: PNB scam: Gitanjali Group's VP held, SFIO calls top bankers; 10 highlights
3. How will you bring back PNB scamsters, Congress asks PM Modi:
The Congress on Thursday moved a motion in the Rajya Sabha demanding a discussion on the PNB scam. The party demanded a statement on the ongoing investigation in the PNB scam from Prime Minister Narendra Modi in both the houses of Parliament. Earlier, the Congress had also staged a protest near Mahatma Gandhi's statue in the Parliament.
ALSO READ: Can govt's plan to use blockchain choke Nirav Modi-style bank frauds?
4. Gitanjali Gems shares hit a 52-week low as ED seizes Mehul Choksi's assets worth Rs 12 billion:
Shares of Gitanjali Gems plunged further on Thursday and settled with losses of over 5 per cent after the Enforcement Directorate (ED) said it has attached 41 properties, valued at over Rs 12 billion, in connection with the PNB case.
Shares of the company slumped to hit a 52-week low of Rs 20.30.
This is the 12th straight session of fall for the stock.
ALSO READ: PNB fraud going on since 2010, CBI tells court: Top 10 developments
5. The 80:20 gold import scheme
After Nirav Modi and Gitanjali fraud on PNB, the skeleton of the 80:20 gold import scheme restricting gold import announced by the United Progressive Alliance (UPA) government are beginning to tumble out.
"There was a scheme 80:20 introduced in August 2013 and repealed in November 2014. On 16th May, 2014, the date of the declaration of results, the then finance minister gave 'aashirvaad' to seven private companies under 80:20 Scheme. One of those companies was Gitanjali," alleged Union minister Ravi Shankar Prasad on Monday. "Chidambaram & Rahul Gandhi must answer why was this passed on the day of results to benefit these seven private companies," Prasad said.
6. GJEPC notice to Nirav Modi, Mehul Choksi:
The Gem and Jewellery Export Promotion Council said it will suspend Nirav Modi and Mehul Choksi if the scamster duo dail to respond to its notices over the Rs 126 billion PNB fraud by 9th March. The council said small traders seeking loans worth few millions of rupees are facing immense hurdles after the scam. The council also said that it is in discussions with the finance ministry to enact stringent reforms regarding financial irregularities, so as to prevent more scams in the future.
ALSO READ: PNB fraud: Jewellery export body for uniform lending rules at all banks
7. Top banking officials talk to SFIO:
PNB managing director and CEO Sunil Mehta on Wednesday appeared before the Serious Fraud Investigation Office (SFIO) to record his statement in the nearly Rs 127 billion scam at the bank.
ICICI Bank chief Chanda Kochhar and Axis Bank's Shikha Sharma were also summoned by the anti-fraud agency in the bank fraud case.
ALSO READ: PNB fraud probe drove Nirav Modi's jeweler to US bankruptcy filing
8. Vigilance award for PNB:
The Punjab National Bank (PNB) has been awarded by the Central Vigilance Commission for timely clearance of disciplinary proceeding, an official of the corruption watchdog said.
PNB was in competition with four other entities in the category, but the scam-ridden PSB won on the back of its record of 92 per cent of cases initiated during 2016.
The second best performance was reported by the CVO of Indian Bank, with 56 per cent being finalised.
9. Nirav Modi no more a Forbes billionaire:
Nirav Modi, who appeared in the list in 2017 with a fortune of $1.7 billion, has been excluded from the 2018 list. Forbes' website describes Modi as the founder of Firestar Diamond, "which claimed to have more than $2 billion in sales." The Saudi business magnate Prince Alwaleed Bin Talal too has been excluded.
ALSO READ: Rs 127-billion fraud fallout: Foreign banks stop selling gold to PNB
10. Setback for rupee forward rates:
One-year rupee forward rates have crashed in the currency market as importers are compelled to buy dollars in the currency market to service their debts. The plunge that amounts to about 50 paise, implies the acute dollar shortage in the forwards market. While the 50 paise slide may not seem like a big setback, forwards move by only a few paise every day.

PNB fraud: 'Helpless', says Mehul Choksi as 1,200 diamond workers lose jobs

Owner of Gitanjali Gems, Mehul Choksi, expressed his "helplessness" in a letter to his employees, stating that he would be unable to clear their dues in lieu of the ongoing probe in the Rs 114 billion-Punjab National Bank (PNB) fraud.
The Enforcement Directorate had conducted raids on the premises of the 89-hectare Hyderabad Gems SEZ, owned by the Gitanjali group. This hit the employees worst as 1,200 workers from Raviryal village lost their jobs, reported Business Standard on Saturday.
Amongst these, 700 workers were mostly differently-abled and women.
“Nobody offered any solution when we started protests at the office premises after we lost our work over a week ago. Then, our MLA visited us and offered support, but we still don’t know if someone will be able to get our jobs back,” a 33-year-old Sultana, differently-abled, told Business Standard reporter B Dasarath Reddy.
Most of these workers are skilled in diamond polishing and don’t know how to do anything else.
Choksi, in a communication to over 3,500 employees, said it would be "very tough" to clear dues of his employees or pay future salaries, as investigative agencies had seized his bank accounts and other properties, adding that the manner of investigation was starting to create havoc, and was hell-bent on stopping the operations.
ALSO READ: After PNB, Rs 3.9-bn Oriental Bank of Commerce scam hits banking sector
Highlighting the "situation of fear and injustice" created against him and the company, Choksi, in his letter issued by his advocate, Sanjay Abbott, suggested to employees that in view of the uncertainty looming overpayment of dues, termination of office operations, and "unfair investigation", they begin scouting for alternate career options.
The top businessman also clarified that laptops, mobile phones issued by the organisation can remain with employees until dues were cleared, adding that relieving letters and experience certificates would be issued to them when necessary.
Choksi also maintained his stance of being falsely accused of defrauding PNB, and assured that employee dues would be cleared once justice is served and the situation returns to normalcy.
ALSO READ: Rs 114-bn PNB scam: Sin or crime?
He also expressed his fear of safety for himself and his family on account of the ongoing "unfair treatment, investigation, media frenzy and political statements", and alleged that the probe was being done to create a fear psychosis in the minds of employees.
Started in 2006, the diamond polish units at Hyderabad Gems SEZ largely engaged people from neighbouring villages.
A state labour department official said the matter was under the jurisdiction of the SEZ Development Commissioner and it is for them to find a solution.
ALSO READ: PNB scam: ED summons Nirav Modi again, seizes watches; top 10 developments
PNB had detected a Rs 114 billion (Rs 11,400 crore) scam earlier this month, in which noted jewellery designer Nirav Modi acquired fraudulent letters of undertaking from one of its branches for overseas credit from other Indian lenders.
Choksi, Modi's uncle, is also being probed for his involvement in the fraud.
PNB lodged two financial fraud complaints of Rs 114 billion and Rs 2.8 billion (Rs 280 crore) against Nirav Modi, his family members and the owner of Gitanjali Gems.
After the case was registered, the Enforcement Directorate (ED) and the Central Bureau of Investigation (CBI) have swung into action.
ALSO READ: PNB scam: Won't tolerate irregularities in financial sector, says PM Modi
On Thursday, the Income Tax (IT) Department attached the special economic zone (SEZ) property of Mehul Choksi's Gitanjali Group in Hyderabad, sources at the department said.
As per the assessee's own valuation, the property is worth about Rs 12 billion (Rs 1,200 crore).
Meanwhile, the ED on Friday froze assets of Nirav Modi worth Rs 438.6 million (Rs 43.86 crore).
Read our full coverage on Nirav Modi scam at PNB