Mehul Choksi, along with nephew Nirav Modi, defrauded the country’s second largest public sector bank PNB of crores. At present, Mehul is in the custody of Dominica Police.
Mehul Choksi and Nirav Modi
The talk of extradition of PNB scam accused and fugitive businessman Mehul Choksi to India has been going on for a long time. Meanwhile, the matter of Mehul’s arrest in Dominica has come to the fore. In which he is seen in police custody. There are marks of injury on his hands. Mehul along with his nephew Nirav Modi had defrauded Punjab National Bank to the tune of Rs 13,500 crore. Both had escaped from India by throwing dust in the eyes of the countrymen. There was a time when Mehul used to wear this precious stone in the streets of Surat like ordinary diamond traders. But on seeing it, at the age of just 26, he had made a property of crores. His nephew Nirav Modi also helped in this work, let us know how both of them carried out this fraud.
Famous businessman made of typical Gujarati
Mehul Choksi was born in Surat in 1960. He was typical Gujarati. His father also used to work in diamonds. He saw this work at home since childhood. Like other people, he also used to do diamond grinding work. But he wanted to become a big businessman instead of a modest Gujarati shopkeeper. So Mehul Choksi started his own brand in 1986 under the name of Geetanjali Gems. At that time his age was only 26. He started ordering and selling polished diamonds without polishing. Not only this, Mehul started sending diamonds to Belgium, America, Japan, China, Hong Kong and Thailand, from which he earned a lot of profit.
Increased business with Nirav
While Mehul Choksi was strengthening his hold in the diamond business, he took the help of nephew Nirav to increase the business at the international level. Let us tell you that Nirav was living in Belgium earlier, but he could not succeed in business there. Hence, Nirav Modi returned to India in 1999. He contacted his maternal uncle Mehul in India. This uncle-nephew pair made a plan to earn wealth together. Both increased the focus towards retail marketing. In 1994, a retail brand named Gili was launched by Mehul’s popular brand Gitanjali. Similarly, the business continued to move forward.
Poll open from ‘Letter of Undertaking’
Mehul Choksi’s fraud came to light when the new officer took the place after the old officer of the bank retired. When a letter of undertaking came to the officer from Mehul-Nirav’s company, the bank officials asked for 100% cash margin. Meaning that the amount of money required for ‘Letter of Understanding’, it was said to be deposited in the bank account. On this, it was said on behalf of Mehul Choksi and Nirav Modi’s company that they have been getting letter of undertaking earlier also.
After investigation, it was found that no records of this were found in the bank. When there was doubt, it was found in the investigation that in issuing such letters, the deputy manager of Punjab National Bank, working during that time, had played this game in collaboration with another associate of the bank itself. The bank alleges that through such letters of credit, about 13 thousand crore rupees were transferred by Mehul Choksi and his associates to many of their bank accounts.
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