Armed with fugitive offenders law, ED to go after Nirav Modi, Choksi

NEW DELHI: Acting on powers provided to it by the Fugitive Economic Offenders Ordinance, the Enforcement Directorate (ED) is set to tighten the noose around jewellers Nirav Modi and Mehul Choksi, wanted for questioning in the ₹12,636 crore Punjab National Bank (PNB) fraud.

Persons familiar with the development said on condition of anonymity that the agency was set to move the PMLA Court (Prevention of Money Laundering Act) in either Delhi or Mumbai for permission accord “fugitive” status to both Modi and his uncle Choksi.

While the ED has provisionally attached assets worth ₹7,600 crore belonging to Modi and Choksi, confiscation awaits court permission.

“Once the court gives the green signal, they will be proclaimed fugitives and their assets will then be confiscated by the Indian government. As of now provisional attachments only prevent them from selling their assets, but it is still in their name. However, once the PMLA court acts upon the ED’s plea, their properties will be seized by the government,” the person said.

However, the procedure requires a chargesheet to be filed against the accused, along with the issuance of a non-bailable warrant (NBW). While the Enforcement Directorate was given the go-ahead by the PMLA court in Mumbai to issue NBWs against both, a chargesheet is yet to be filed.

The ordinance aims to bring to task suspected economic offenders who flee India and do not return to face trial. It gives the government powers to confiscate property both within and outside India—whether or not the properties have been purchased from the proceeds of crime.

It also covers a wide array of white collar offences that can lead to an individual being classified as an economic offender. Serious violations of tax laws, including the goods and services tax, customs and excise, antiblack money law and benami property transactions could see provisions of this bill kick in. The amount involved has to be more than ₹100 crore for the law to apply.

(Remya Nair contributed to this story)