PNB fraud: Delhi High Court asks police to not take any coercive action against Mehul Choksi
While the police continue to investigate cheating allegations levelled against Mehul Choksi and his company, the Delhi High Court on Tuesday asked Delhi police to not take any coercive action against the accused.
Choksi is the uncle of billionaire Nirav Modi and the investigative agencies have swung into action against both of them for the Rs 11,500 crore scam of Punjab National Bank.
The Delhi High court was hearing a plea for quashing of an FIR against Choksi, who has been accused of selling substandard diamonds to Khuraniya and his colleague who had set up RM Green Solutions and got into an agreement with Gitanjali Gems.
Choksi had assured them of stocks worth three crore rupees in the form of diamond jewellery and other gifts on a security deposit of Rs 1.5 crore.
It had also alleged that on the day of opening of the retail franchise store in Rajouri Garden in West Delhi in October 2013, the fraud came to light as they received third-grade diamonds and other items, the worth of which was Rs 50-70 lakh.
Choksi, in his plea seeking to quash of FIR, claimed in the court that the franchisee work was not done properly by the complainant and alleged that instead of jewellery, liquor was being vented from the same premises, leading to a loss to Khuraniya.
The High Court on April 27 last year had directed that no coercive steps be taken against the petitioner on the condition that he would participate in the investigation.
The interim protection from coercive action against Choksi will be valid till May 3. Choksis lawyer told court the complainants main grievance was that no additional stock was provided to his franchise, RM Green Solutions, and it, therefore, did not make for a case of cheating.
The lawyer also said the complainant has not sat down with Choksi so far to explain what has happened to the unpaid stock that the franchisee was provided despite several requests.