{"id":113780,"date":"2020-07-20T08:10:53","date_gmt":"2020-07-20T12:10:53","guid":{"rendered":"https:\/\/antiguanewsroom.com\/?p=113780"},"modified":"2020-07-20T08:10:53","modified_gmt":"2020-07-20T12:10:53","slug":"investigators-file-new-charge-sheet-against-choksi-to-aid-extradition","status":"publish","type":"post","link":"https:\/\/antiguanewsroom.com\/investigators-file-new-charge-sheet-against-choksi-to-aid-extradition\/","title":{"rendered":"Investigators File New Charge Sheet Against Choksi To Aid Extradition"},"content":{"rendered":"
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The Enforcement Directorate (ED) has filed a charge sheet against fugitive jeweller Mehul Choksi, elaborating how he allegedly ran an organised racket to cheat customers and lenders in India, Dubai and the US, including top financial institutions, by dealing in \u201clab grown diamonds\u201d and selling off properties, details accessed by Hindustan Times reveal.<\/p>

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The charge sheet is aimed at bolstering India\u2019s extradition request for Choksi to Antigua and Barbuda sent under the UN Conventions against Corruption in March 2019. An official said on condition of anonymity that the charge sheet was filed a \u201cfew weeks back\u201d. He, however, did not give a specific date.<\/p>\n

Choksi, a key accused in the Rs 13,500-crore\u00a0Punjab National Bank\u2009fraud case along with his nephew Nirav Modi<\/a>, became a citizen of Antigua and Barbuda under a programme in which a certain quantum of investment entitles an individual to citizenship. While investigators say Choksi fled the country to avoid arrest, he claims he left India in January 2018 to undergo a bypass surgery, and not to avoid prosecution. ED previously filed a charge sheet in 2018 to underline the role of Choksi and others in the PNB fraud case.<\/p>

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The new charge sheet, relying on statements of several top executives of companies based in the US, UAE, Hong Kong and India, reveals how \u201clab grown diamonds\u201d were being sold in the garb of natural diamonds through Choksi\u2019s companies M\/s Shanyo Gong Si Ltd in Hong Kong and M\/s Voyager Brands and M\/s Samuels Jewelers Inc in the US. The factory for lab-grown diamonds was run in Surat, where large-scale production took place, personally monitored by Choksi, the charge sheet says. These diamonds appear similar in size, quality and colour when compared to natural diamonds, it adds.<\/p>

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According to the charge sheet, in December 2017, Choksi called a meeting of his top employees in Hong Kong, informing them that \u201ccoming two-three months would be very tough for Gitanjali Group companies as they would be facing forensic audits\u201d, while directing them not to travel to India during this time. The Central Bureau of Investigation (CBI) initiated a probe into the PNB fraud on January 31, 2018.<\/p>\n

In January 2018, Choksi tried to dispose of his company Gitanjali Infratech Ltd\u2019s \u201cTatva Project\u201d in Borivali (Mumbai) by transferring its development rights to one Laxmi Infra Developers Ltd, a Surat-based company owned by Vasant Gajera, according to the charges. Gajera has been charge-sheeted by ED along with Choksi.<\/p>

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After the CBI filed a case in January 2018, Choksi and Gajera signed an agreement, according to which, the latter was allowed to develop the project against the transfer of 50 unsold flats to Gitanjali Infratech apart from a payment of over ~30 crore, ED has said. Quoting a February 2019 report of a US Bankruptcy Court-appointed examiner John J Carney, which is now part of the ED charge sheet, the agency has said that Texas-based Samuels Jewelers Inc was used by Choksi for circulating money taken from PNB.<\/p>\n

\u201cChoksi and an international web of co-conspirators used Samuels and a series of puppet vendors 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 \u2013 were secretly selling inventory and laundering money themselves at the directions of Choksi and individuals under his control\u201d the charge sheet says.<\/p>

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ED has stated that there were transactions worth $121 million in the form of purchases and sales from Samuels.<\/p>

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The primary goal of this, according to the charge sheet, \u201cwas to fraudulently induce Samuels\u2019 primary lenders, Wells Fargo and Gordon Brothers, to authorize tens of millions of dollars of credit in advances which were ultimately funnelled outside the US to Choksi-controlled entities in India, Dubai and Hong Kong\u201d.<\/p>\n

The agency has alleged that puppet vendors in Hong Kong such as Shanyo Gong Si Ltd and Taipingyang Trading Ltd were established by Choksi by providing false paper and monetary trails, which allowed Choksi to use Samuels\u2019 US affiliates as shipping hubs for inventory purchases from Gitanjali affiliates.<\/p>\n

The agency has recorded a statement of a US national \u2013 Curtis Alan Lowrey \u2013 who previously co-owned M\/s Independent Gemological Laboratories Inc; the firm was later bought by Choksi. Lowrey said that when he pointed out that lab-grown diamonds were being sold as natural diamonds, Choksi called him and directed him not to discuss such matters with anyone except him.<\/p>\n

Former CEO of Samuels, Farhad K Wadia, also sent a \u201csworn affidavit and statement\u201d to ED by post, now part of the charge sheet, in which he said that Choksi asked him to rebrand the whole business of Gitanjali in the US under the name of Voyager Brands and told him that his son \u2013 Rohan Choksi \u2013 was the boss of the group business in the US.<\/p>\n

According to Wadia\u2019s statement to ED, Choksi\u2019s sister Neena Seth, daughter-in-law Snagda Talera and son Rohan Choksi would oversee Voyager Business in Austin and both Rohan and Snagda worked as his \u201ceyes and ears\u201d. Reacting to questions on the charge sheet, Choksi\u2019s lawyer Vijay Aggarwal said: \u201cEvidence is very weak. It shall not stand judicial scrutiny. Reverse burden of proof under fiscal laws doesn\u2019t mean that prosecution need not prove even bedrock facts.\u201d Calls made to Laxmi Developers could did not go through. An email query remained unanswered.<\/p>\n

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The Enforcement Directorate (ED) has filed a charge sheet against fugitive jeweller Mehul Choksi, elaborating how he allegedly ran an organised racket to cheat customers and lenders in India, Dubai and the US, including top financial institutions, by dealing in \u201clab grown diamonds\u201d and selling off properties, details accessed by Hindustan Times reveal. The charge […]<\/p>\n","protected":false},"author":3,"featured_media":21053,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12,5],"tags":[],"class_list":["post-113780","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-crime","category-news"],"yoast_head":"\nInvestigators File New Charge Sheet Against Choksi To Aid Extradition - Antigua News Room<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/antiguanewsroom.com\/investigators-file-new-charge-sheet-against-choksi-to-aid-extradition\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Investigators File New Charge Sheet Against Choksi To Aid Extradition\" \/>\n<meta property=\"og:description\" content=\"The Enforcement Directorate (ED) has filed a charge sheet against fugitive jeweller Mehul Choksi, elaborating how he allegedly ran an organised racket to cheat customers and lenders in India, Dubai and the US, including top financial institutions, by dealing in \u201clab grown diamonds\u201d and selling off properties, details accessed by Hindustan Times reveal. 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