PNB fraud fugitive Choksi fears ‘mob lynching’

MUMBAI: One of the main defendants in India’s largest bank fraud case moved court on Monday for cancellation of an arrest warrant against him, citing fears for his life because of a growing number of mob lynchings in the country.

Mehul Choksi, (pictured), who is accused of defrauding Punjab National Bank of $2 billion along with his nephew, diamond tycoon Nirav Modi, fled India before the accusations came to light and said in Monday’s application that he could not disclose his location in public because of the threat to his life.

The recent trend of “mob lynching is growing”, Choksi’s lawyer said in the application seen by Reuters, adding that he fears such a fate if he were ever to return to India.

Choksi’s lawyer said that a lack of prosecutions in lynching cases is encouraging more mob violence.

Those with grievances against Choksi, who owns Gitanjali Gems, include employees who have not been paid, families of detained employees and various creditors, he said. Choksi and Modi are accused of colluding with a handful of bankers to secure credit from overseas banks using fraudulent guarantees.

Both have denied the allegations. Authorities have said that Choksi and Modi left India before the PNB complaint against them was filed and their whereabouts remain unknown.

Choksi has been highly critical of investigating agencies, alleging that the seizure of his assets, bank accounts and the shutting down of all his offices in India has caused prejudice against him.

A special court for cases under the Prevention of Money Laundering Act had issued a non-bailable warrant against Choksi this month after the Enforcement Directorate filed charges against Choksi and his associates last month.