Court refuses CBI’s plea for custody of Mehul Choksi’s top executive

The former international business head of fugitive diamond merchant Mehul Choksi’s Gitanjali Group, Sunil Varma, was granted an extension of his interim bail by a special court, rather than being remanded in custody by the Central Bureau of Investigation (CBI).

The CBI had filed an FIR against Choksi, his Gitanjali Group companies, and several others for defrauding the Punjab National Bank of a substantial amount.

Sunil Varma, who is also accused in the PNB bank fraud case, had previously sought cancellation of his warrant, and appeared before the special CBI court after six-and-a-half years.

The CBI’s plea for Varma’s custody remand emphasized his alleged significant role in the fraudulent activities associated with the Gitanjali Group.

The entities controlled by Choksi are reported to have defrauded a consortium of banks, and similarly, Choksi’s nephew Nirav Modi has been accused of defrauding the Punjab National Bank using a similar fraudulent scheme.

Mehul Choksi is an Indian businessman residing in Antigua and Barbuda, facing accusations of criminal conspiracy, breach of trust, cheating, corruption, and money laundering by Indian authorities.

Choksi denies the allegations, claiming they are politically motivated and baseless.

He obtained Antiguan citizenship in 2017 and is the owner of Gitanjali Group, a jewelry retail company with numerous stores in India.

A warrant for his arrest has been issued in connection with the Punjab National Bank fraud case, and he has also been linked to stock market manipulation.

Choksi disappeared from Antigua and Barbuda, with conflicting reports at the time claiming he was either kidnapped by the Indian state or fled the country.

Several weeks later, authorities confirmed that Choksi was indeed kidnapped

He was later found and arrested in Dominica for illegal entry before being returned to Antigua and Barbuda on interim bail for medical treatment.

The charge of illegal entry was subsequently dropped by the Dominican Government. Investigations into his disappearance are ongoing.