PNB fraud: Court issues non-bailable warrant against Jayesh Shah
What's the story
A special Central Bureau of Investigation (CBI) court has issued an open-ended, non-bailable warrant against Jayesh Shah, a Hong Kong-based accused in the Punjab National Bank (PNB) fraud case. The ₹13,579-crore scam involves Mehul Choksi's Gitanjali Group. The warrant was issued after Shah failed to return to India for the investigation despite a red corner notice against him.
Accusations
Shah was named in supplementary charge-sheet
Shah, a partner at Hong Kong-based 4C's Diamonds Distributors, is accused of managing operations that enabled fraudulent letters of undertaking (LoUs) for Gitanjali companies by circumventing banking rules.
He was named in a supplementary charge-sheet filed by the CBI in July alongside other accused such as former PNB internal chief auditor Bishnubrata Mishra and Gitanjali Gems import-export manager Ajit Bheda.
Judicial remarks
Shah was emailed, asked to join investigation
The court noted that Shah had been residing in Hong Kong even before the crime was registered.
The CBI had emailed him on March 3, 2021, and called him, asking him to join the investigation. However, he "has refused to come to India," the judge said.
A Red Corner Notice was later issued against Shah, after which an open-ended non-bailable warrant was issued by Additional Sessions Judge SK Karhale.
Prosecution perspective
Accused is 'knowingly residing abroad to avoid prosecution'
The court observed that the accused is "knowingly residing abroad to avoid prosecution."
This was after the CBI told it about Shah's refusal to join the investigation despite being contacted via email and phone.
The wider PNB fraud, pegged at ₹23,000 crore, involves companies linked to Choksi and his nephew, fugitive diamantaire Nirav Modi.