ED to file chargesheet against Mehul Choksi’s son, ‘fugitive’ tag likely in PNB fraud case

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 diamantaire Mehul Choksi. The agency is also likely to initiate proceedings to have him declared a Fugitive Economic Offender (FEO), marking the first formal legal action against him since the probe began in 2018.

Rohan Choksi is believed to be residing in the United States and had not been named as an accused in any FIR or chargesheet filed by the ED or the Central Bureau of Investigation until now. According to investigative findings, he was allegedly associated with companies said to have been created as shell entities and held directorial roles in certain firms suspected of routing and layering funds linked to the bank fraud.

The ED has claimed that Rohan played an “active” role in laundering proceeds of crime generated from the PNB fraud. Investigators estimate that transactions worth nearly $121 million were routed through Texas-based Samuels Jewelers Inc., allegedly to project them as legitimate jewellery trade. These transactions were purportedly used to secure credit facilities from lenders including Wells Fargo and Gordon Brothers.

Authorities allege that funds were subsequently diverted to entities linked to the Choksi network in India, Dubai and Hong Kong. A 2019 report by a US bankruptcy court-appointed examiner had flagged suspicious transactions involving shell vendors and related-party dealings. Statements recorded from former executives of associated firms have also allegedly indicated that Rohan oversaw certain US operations.

Earlier, the ED had named Mehul Choksi’s wife, Priti Choksi, as an accused in its chargesheet and is expected to seek her declaration as a Fugitive Economic Offender as well. Mehul Choksi is currently lodged in a prison in Antwerp, Belgium, following his arrest pursuant to India’s extradition request. Officials said that once the chargesheet against Rohan Choksi is filed, the agency will approach a special court under the Fugitive Economic Offenders Act to seek his declaration as an FEO.