PNB scam: CBI seeks whereabouts of Mehul Choksi from authorities in Antigua

In the wake of reports that fugitive diamantaire Mehul Choksi had moved to Antigua, a Caribbean country, and also taken a local passport, the CBI has written to Antiguan authorities seeking whereabouts of Choksi, who is allegedly involved in over USD 2 billion scam in state-run Punjab National Bank, said a report.
 
The CBI in its communication sent to Antiguan authority a notice issued by the Interpol against the fugitive businessman and sought details of his movement and his present location, the PTI report said citing government sources.
 
Choksi's actions show that he had planned in advance his escape and subsequent life knowing that the scam would blow up after the retirement of PNB employee Gokulnath Shetty who was helping him with renewals of Letter of Undertakings, the source told PTI, adding that he escaped the country in the first week and took the oath of allegiance in Antigua on January 15.
 
Choksi allegedly swindled Rs 7080.86 crore, making it possibly the biggest banking scam in the country, the CBI had alleged. Choksi and his companies allegedly availed credit from overseas branches of Indian banks using the fraudulent guarantees of PNB given through LoUs and letters of credit issued Brady House branch which were not repaid bringing the liability on the state run bank, the officials reportedly said.
 
Notably, an LoU is a guarantee given by an issuing bank to Indian banks having branches abroad to grant short-term credit to the applicant.
 
The charge sheet, filed in the Mumbai special court after a three-and-a-month-long probe, alleged that Shetty, a deputy manager in PNB, arrested by the CBI, received Rs 1 crore from the companies of Choksi to issue LoUs to his companies, the officials reportedly said. 
 
According to 'Antigua Observer', a local newspaper, Mehul Choksi took citizenship of Antigua in November 2017, and oath of allegiance on January 15, 2018. Citing reports from Indian outlets, the newspaper sent a questionnaire to Citizenship by Investment unit (CIU) of Antigua about Choksi.
 
Further, the newspaper reportedly said that it was informed that Choksi's application was granted after "robust due diligence" and "international investigation" by "reputable agencies", including the International Criminal Police Organization and the CARICOM Implementing Agency for Crime and Security (IMPACS).
 
The CIU reportedly responded, "Choksi was granted citizenship by registration in November 2017 and he swore the Oath of Allegiance in Antigua on January 15, 2018." 
 
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Choksi`s application was reportedly granted "after robust due diligence and international investigation by reputable agencies, including the International Criminal Police Organization (Interpol) and the CARICOM Implementing Agency for Crime and Security (IMPACS)", according to the CIU, which also said that "the 2017 investigation revealed no derogatory information about Choksi".