Nirav Modi and Mehul Choksi have been accused of committing a fraud worth ₹13,000 crore in the PNB scam. The owner of Gitanjali Jewelers, Mehul Choksi is Nirav Modi’s maternal uncle and has a non-bailable warrant against him but recently he asked for the cancellation of the warrant in front of the CBI Special Court in Mumbai.
The warrants were issued against them under the Prevention of Money Laundering Act by the Enforcement Directorate (ED).
Choksi is alleged to have illegally obtained a loan of ₹6,000 crore and Foreign letter of Credit from Punjab National Bank (PNB). Out of the ₹6,000 crore, he invested ₹2,000 crore in his own companies whereas ₹4,000 crore was used to buy bungalows in US and Dubai.
The major accused of the scam, Nirav Modi has currently fled from India and recently, the ED released the order of his extradition.