Fugitives Mehul Choksi and his nephew Nirav Modi have moved to Antigua and attained local passports. Choksi and his nephew are wanted for a Rs. 11,000 crore bank fraud. The two men with their families fled Indian earlier this year.
Earlier this year, PNB stated two jewellery groups headed by Nirav Modi and his uncle Mehul Choksi defrauded the bank. The bank has reported the two accused defrauded it of $2.2 billion.
The two men raised credit from other overseas branches by using illegal guarantees issued by rogue PNB employees at a Mumbai branch. Nirav Modi is trying to claim asylum from what he calls political persecution.
The Central Bureau of Investigation (CBI) filed charges against Nirav Modi, Mehul Choksi and former PNB Chief Usha Ananthasubramanian. The CBI has also charged three companies owned by Nirav Modi.
The Lok Sabha passed the Fugitive Economic Offenders Bill which allows confiscation of assets without conviction of fugitives.
The Bill aims at deterring economic offenders from fleeing India and not returning to face trial. This Bill will be effective and the Government will have a quicker recovery of the dues.
The Bill will describe the benchmark for a fugitive economic offender. The law would be applicable to the offenders involved in cases with more than Rs. 100 crores. This act will constitute a National Financial Reporting Authority (NAFRA.) This authority will decide which cases are applicable under the act.
The overseas assets of the fugitive will also be liable for confiscation depending on the country’s cooperation. This Bill will also prevent a convicted Fugitive Economic Offender from making an civil claim in the Country.
