Mehul Choksi's son was 'actively' involved in money laundering: ED
What's the story
The Enforcement Directorate (ED) has, for the first time, alleged that fugitive diamond merchant Mehul Choksi's son, Rohan Choksi, was actively involved in money laundering with his father. The claim was made during a hearing before an appellate tribunal for forfeited property (ATFP) in Delhi. The ED made the assertion while opposing Rohan's plea against the attachment of a Mumbai property in 2018. Rohan has argued the property was bought by his family trust in 1994.
Allegation details
ED claims property transfer was a 'calculated move'
The ED contended that the Mumbai property in question was transferred by Mehul to Rohan in 2013. The agency alleged this was a "calculated move" by Mehul, anticipating the attachment of properties if his fraud was detected. This is the first such accusation, as Rohan has never been named in any FIR or charge sheet filed by the ED or Central Bureau of Investigation (CBI) in any Prevention of Money Laundering Act (PMLA) case.
Extradition saga
Mehul Choksi's extradition and properties linked to him
Mehul fled India in 2017 after defrauding Indian banks. He has since moved from the US to Belgium, Antigua and Barbuda, and finally back to Belgium. He is currently imprisoned in Antwerp after being arrested on an extradition request by the CBI last year. As part of its investigation into the Punjab National Bank (PNB) fraud case, ED has attached properties worth ₹2,565 crore linked to Mehul Choksi's companies and family members.
Property dispute
Dispute over Walkeshwar road property
Among the properties attached by ED is a flat on Walkeshwar Road, Mumbai, in Rohan's name. Per HT, an adjudicating authority under the PMLA confirmed the attachment of another flat in Dadar East but not this one. Now, ATFP has referred this matter back to AA for correction. Rohan contended that his family trust purchased the Walkeshwar Road property in June 1994 and it was transferred to him by his father on November 1, 2013.
Counterarguments
ED counters Rohan's arguments with fraud detection claims
Countering Rohan's arguments, the ED said Mehul "deliberately caused the transfer of the said property in the name of his son Rohan Parth Mehul Choksi on November 1, 2013." The agency argued this was a calculated move by Mehul Choksi in anticipation of property attachment if fraud was detected. The ED also claimed all evidence points to Rohan being actively involved in money laundering after committing the predicate offense.