Chargesheet To Be Filed Against Mehul Choksi's Son, "Fugitive" Tag Likely

In a significant development in the nearly $2 billion Punjab National Bank (PNB) fraud case, the Enforcement Directorate (ED) is preparing to file a prosecution complaint against Rohan Choksi, son of fugitive diamond trader Mehul Choksi. The agency is also likely to initiate proceedings to have him declared a Fugitive Economic Offender (FEO).

Sources said this would mark the first formal legal action against Rohan Choksi, who is currently believed to be living in the US. Although the probe by the ED and the Central Bureau of Investigation (CBI) has been underway since 2018, Rohan's name had not figured as an accused in any FIR or chargesheet until now.

Fresh evidence gathered during the money laundering investigation reportedly indicates that Rohan Choksi was actively involved in companies allegedly set up as shell entities by his father. Investigators claim he served as a director in some of these firms, which were allegedly used to route and layer funds linked to the bank fraud.

The ED's move comes weeks after it informed authorities that Rohan had allegedly played an "active" role in laundering proceeds of crime generated from the PNB fraud. The agency estimates that transactions worth nearly $121 million were routed through Texas-based Samuels Jewelers Inc., allegedly to create the appearance of legitimate jewellery trade.

These transactions were purportedly used to secure credit lines from lenders such as Wells Fargo and Gordon Brothers, with funds allegedly diverted to entities linked to Choksi in India, Dubai and Hong Kong.

A 2019 report by a US bankruptcy court-appointed examiner, John J Carney, had flagged suspicious dealings involving shell vendors and related-party transactions. Additionally, statements recorded by the ED from former executives of associated firms have allegedly pointed to Rohan's supervisory role in US operations.

Earlier in 2022, the ED had named Mehul Choksi's wife, Priti Choksi, as an accused in its charge sheet. Sources now indicate that the agency is preparing to move court to declare her a Fugitive Economic Offender as well.

Mehul Choksi is currently lodged in a prison in Antwerp, Belgium, following his arrest last year pursuant to an extradition request by Indian agencies.

Officials said that after filing the chargesheet against Rohan Choksi, the ED may approach the special court under the Fugitive Economic Offenders Act to seek his declaration as an FEO, intensifying the legal pressure on the Choksi family in one of India's largest banking fraud cases.