Never miss a great news story!
Get instant notifications from Economic Times
AllowNot now


You can switch off notifications anytime using browser settings.
11,929.7557.65
Stock Analysis, IPO, Mutual Funds, Bonds & More

Seized goods undervalued by ED, no report submitted, alleges Mehul Choksi

Choksi has alleged that the seized goods were “undervalued” by the ED and stated that these might have been changed with other goods.

, ET Bureau|
Updated: Sep 30, 2019, 07.53 AM IST
0Comments
BCCL
mehul-choksi-bccl-file
Choksi, along with nephew Nirav Modi, are wanted in an alleged Rs 13,570 crore fraud caused to Punjab National Bank.
Mumbai: Days after Antigua and Barbuda Prime Minister Gaston Alfonso Browne called Mehul Choksi “a crook” and termed his extradition “only a matter of time”, the jeweller moved the Bombay High Court seeking revaluation and reinstatement of his assets seized by the Enforcement Directorate (ED).

Choksi has alleged that the seized goods were “undervalued” by the ED and stated that these might have been changed with other goods.

“...otherwise there is no reason why two registered government valuers will give drastically different valuation of the same goods,” his application before the HC states.

Choksi, along with nephew Nirav Modi, are wanted in an alleged Rs 13,570 crore fraud caused to Punjab National Bank. While Choksi is believed to be in the twin Caribbean islands of Antigua and Barbuda, Nirav Modi is lodged in a prison in London, after he was arrested by Scotland Yard in March.

Sources in probe agencies told ET that they would contest the “frivolous” application filed by Choksi, who they said was trying to delay the proceedings. A probe conducted by the CBI and ED has concluded that the uncle-nephew duo sold synthetic diamond. In the US, an investigation ordered by a US bankruptcy court observed that the diamond trader’s firm in the US, Samuels Jewelers Inc, might have sold lab-grown diamonds to customers by wrongly certifying them as natural stones.

According to the application seen by ET, Choksi has alleged that the goods seized at his Hyderabad SEZ premises, pegged at Rs 103.08 crore by the ED, were undervalued. “...it is submitted that previous valuation of Rs 3,840 crore was also made by a registered valuer and it is not possible that the previous valuer has made arbitrary valuation. Further, ED has not submitted any valuation report and has not given any reason why valuation was reduced,” it said.

The jeweller has also challenged the stocks seized by the federal agency claiming, “...under the Prevention of Money Laundering Act (PMLA) only , ‘proceeds of crime’ can be seized and not any property, but Enforcement Directorate has exercised its powers arbitrarily ... and seized stock purchased out of legitimate source which is not a crime”.

The application was filed through counsel Vijay Aggarwal. It said the goods were valued by the customs department but it never issued any notice that those were over-valued.

The goods were also subject to special inspection by the government, it said.

Also Read

Mehul Choksi seeks copy of CBI application declaring him proclaimed offender

Mehul Choksi cheated Punjab & Sind Bank of Rs 44 crore

INTERPOL ties up with CBI to arrest Mehul Choksi

Can repay bank loans with my trade receivables: Mehul Choksi

Comments
Add Your Comments
Commenting feature is disabled in your country/region.
Download The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.

Other useful Links


Follow us on


Download et app


Copyright © 2019 Bennett, Coleman & Co. Ltd. All rights reserved. For reprint rights: Times Syndication Service