In a major development in the nearly $2 billion Punjab National Bank fraud case, the Enforcement Directorate is set to file a prosecution complaint against Rohan Choksi, son of fugitive diamond trader Mehul Choksi, and is likely to begin proceedings to have him declared a Fugitive Economic Offender.
Investigations by the Enforcement Directorate and the Central Bureau of Investigation have been ongoing since 2018 in connection with the case.
Who is Rohan Choksi?
Rohan Choksi is the son of fugitive diamond trader Mehul Choksi. Sources said this would be the first formal legal action against Rohan Choksi, who is believed to be residing in the United States. Until now, his name had not appeared as an accused in any FIR or chargesheet filed by the ED or the Central Bureau of Investigation.
The agency will also seek to declare Mehul Choksi’s wife, Priti Choksi, a fugitive economic offender, they said.
“There is clear evidence which reveals that Mehul Choksi rebranded his Gitanjali group’s business in the US in the name of Voyager Brands and gave Rohan Choksi control of it. Besides, he transferred properties in his name in India, as well as abroad. It’s time we take legal action against Rohan Choksi. Therefore, it has been decided to file a charge sheet against him and also approach the court to declare him a FEO,” said an officer.
Fresh evidence collected suggests that Rohan Choksi played an active role in companies allegedly established as shell entities by his father. Investigators say he served as a director in some of these firms, which were purportedly used to route and layer funds connected to the bank fraud.
The ED informed authorities that Rohan had allegedly played an “active” role in laundering proceeds of crime generated from the PNB fraud. The agency estimates that transactions worth nearly $121 million were routed through Texas-based Samuels Jewelers Inc., allegedly to create the appearance of legitimate jewellery trade.
These transactions were purportedly used to secure credit lines from lenders such as Wells Fargo and Gordon Brothers, with funds allegedly diverted to entities linked to Choksi in India, Dubai and Hong Kong.
Another ED officer said, “A February 2019 report of a US Bankruptcy Court appointed examiner John J Carney reveals that Texas based Samuels Jewelers Inc and a series of puppet (shell) vendors was used by Mehul Choksi and other co-conspirators to create the false appearance that Samuels was purchasing and/or selling jewellery to and from unrelated third parties”.
“In fact, Samuels and related entities – were secretly selling inventory and laundering money themselves at the directions of Mehul Choksi and individuals under his control,” this officer added.
Mehul Choksi is currently lodged in a prison in Antwerp, Belgium, following his arrest last year pursuant to an extradition request by Indian agencies.
Officials said that once the chargesheet against Rohan Choksi is filed, the Enforcement Directorate may move the special court under the Fugitive Economic Offenders Act to have him declared a Fugitive Economic Offender, thereby escalating legal pressure on the Choksi family in banking fraud case.
