India’s
wanted scammer Nirav Modi has been declared a fugitive economic offender by a
Mumbai court for the $2 billion Punjab National Bank (PNB) money-laundering and
fraud case He is the second person, after Vijay Mallya, to be charged under an
anti-fraud law that was passed last year.
The
Act permits for confiscation of property of economic offenders who evade
prosecution by staying outside the jurisdiction of Indian courts.
Nirav Modi, 48, and his uncle, Mehul Choksi, 60, are the prime accused in a scam involving fake guarantees in the name of a state-run lender to secure overseas loans. Both fled India in January last year before the Central Bureau of Investigations (CBI) began investigations.
Nirav Modi was arrested in March by Scotland Yard in connection with this case. India is seeking his extradition to make him face the country’s law for his alleged offenses.
The
Fugitive Economic Offenders Act, 2018, designed to catch people who flee abroad
after committing financial crimes, was signed into law by the President in
August last year. It is aimed at stopping a growing number of high-profile
economic offenders fleeing the country to avoid legal action.
According to the new law, a fugitive economic offender is a person against whom an arrest warrant has been issued for his or her involvement in economic offenses involving at least Rs 100 crore or more and has left India to avoid prosecution.
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