NEW DELHI: The Enforcement Directorate (ED) has decided to file a charge sheet against Rohan Choksi, son of fugitive diamond Mehul Choksi, and also declare him as a fugitive economic offender (FEO), weeks after it alleged that the son was “actively” involved in the crime of money laundering in the Punjab National Bank (PNB) scam, people familiar with the developments said.
The agency will also seek to declare Mehul Choksi’s wife, Preeti Choksi, as a fugitive economic criminal, they added.
“There is clear evidence revealing that Mehul Choksi renamed his Gitanjali Group business in the US as Voyager Brands and gave Rohan Choksi control over it. In addition, he transferred properties in his name in India, as well as abroad. It is time to take legal action against Rohan Choksi. Therefore, it has been decided to file a chargesheet against him and also approach the court to declare him an anti-terrorist,” said an officer, who requested anonymity.
This is the first time that any formal legal action has been taken against Rohan Choksi, who is believed to reside in the United States. Preeti Choksi was named as a defendant in the indictment in 2022. She lives in Belgium after fleeing there from Antigua and Barbuda with her husband. Mehul Choksi is currently in a prison in Antwerp after he was arrested on April 11 last year based on an extradition request filed by the CBI.
Commenting on Mehul Choksi’s alleged illegal activities in the US, which also implicates Rohan Choksi according to the agency, a second ED officer said: “The February 2019 report issued by US Bankruptcy Court-appointed examiner John J. Carney reveals that Texas-based Samuels Jewelers Inc and a chain of doll (shell) sellers were used by Mehul Choksi and other co-conspirators to create the false appearance that Samuels was buying and/or selling jewelry to third parties. Third, unrelated.
“In fact, Samuels and related entities were secretly selling the stock and laundering the money themselves on the directions of Mehul Choksi and individuals under his control,” added this officer, who requested anonymity.
There were total transactions worth $121 million in purchases and sales from Samuels, according to the officer. “The primary purpose was to fraudulently induce Samuels’ primary lenders – Wells Fargo and Gordon Brothers – to allow tens of millions of dollars in advance loans that were ultimately transferred out of the United States to Choksi-controlled entities in India, Dubai and Hong Kong,” he added.
The Enforcement Directorate (ED) recorded the statement of Curtis Alan Lowry, a US citizen who previously co-owned M/s Independent Gemological Laboratories Inc, which was later bought by Mehul Choksi. Lori said that when he once asked why lab-grown diamonds were not advertised as such and sold as natural diamonds, Mehul Choksi called him and ordered him not to discuss such matters with anyone but him, the senior official said.
Former Samuels CEO Farhad K Wadia also sent a “sworn acknowledgment and statement” to the ED via mail, in which he claimed that Mehul Choksi had asked him to rename Gitanjali’s entire US business as Voyager Brands and told him that his son – Rohan Choksi – “is the ultimate head of the group’s US business”.
According to Wadia’s statement to ED, Choksi’s sister Neena Seth, daughter-in-law Snajda Talera, and son Rohan Choksi were running Voyager Bbusiness in Austin, and Rohan and Snajda were his “eyes and ears.”
Last month, the agency alleged before the Appellate Tribunal for Confiscated Property (ATFP) in Delhi that Mehul Choksi had transferred a property in Mumbai in 2013 in Rohan’s name in a “calculated move”, anticipating the property would be included in his name.
“All the facts and evidence on record clearly indicate that Rohan Choksi was also actively involved with his father Mehul Choksi in committing the crime of money laundering, after the commission of the original crime,” the agency added.
