Days after SC asked about Mehul Choksi's whereabouts, chargesheet to be filed against his son; 'fugitive' tag likely

Mehul Choksi

• ED to file chargesheet against Rohan Choksi in PNB fraud case
• Rohan Choksi may be declared a Fugitive Economic Offender
• ED alleges Rohan played active role in laundering $121 million

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The Enforcement Directorate is preparing to file a prosecution complaint against Rohan Choksi in connection with the nearly $2 billion Punjab National Bank fraud case, marking the first formal legal action against him since investigations began in 2018. The agency is also expected to initiate proceedings to have him declared a Fugitive Economic Offender.

Rohan Choksi, the son of fugitive diamantaire Mehul Choksi, is believed to be residing in the United States. Until now, his name had not appeared as an accused in any FIR or chargesheet filed by the ED or the Central Bureau of Investigation.

According to sources, fresh findings in the money laundering probe suggest that Rohan was associated with companies allegedly created as shell entities by his father. Investigators claim he held directorial positions in certain firms that were allegedly used to route and layer funds linked to the bank fraud.

The agency’s move follows its recent communication to authorities stating that Rohan had allegedly played an "active" role in laundering proceeds of crime generated from the PNB fraud. The ED estimates that transactions amounting to nearly $121 million were channelled through Texas based Samuels Jewelers Inc., allegedly to present the transactions as legitimate jewellery trade.

These dealings were purportedly used to obtain credit facilities from lenders including Wells Fargo and Gordon Brothers. Investigators allege that the funds were subsequently diverted to entities connected to Choksi in India, Dubai and Hong Kong.

A 2019 report submitted by US bankruptcy court appointed examiner John J Carney had highlighted questionable transactions involving shell vendors and related party arrangements. The ED has also recorded statements from former executives of associated companies, who have allegedly indicated that Rohan oversaw certain US operations.

In 2022, the ED had named Mehul Choksi’s wife, Priti Choksi, as an accused in its chargesheet. Sources now indicate that the agency may also move to have her declared a Fugitive Economic Offender.

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

Officials said that once the chargesheet against Rohan Choksi is filed, the ED is likely to approach a special court under the Fugitive Economic Offenders Act seeking his declaration as an FEO, further tightening the legal net around members of the Choksi family.