Mehul Choksi claims innocence in PNB fraud with open letter

Agencies
February 25, 2018

Mumbai, Feb 25: Mehul Choksi, one of two businessmen allegedly involved in the Rs11,400 crore PNB fraud, broke his silence at the weekend with an open letter to employees claiming his innocence and telling them to look for other jobs.

Choksi and his nephew Nirav Modi, both owners of jewellery store chains, are suspected of colluding with two employees from Punjab National Bank, the country’s second-largest state lender, in the alleged $1.8 billion fraud.

The businessmen are said to have been issued with illegal letters of undertaking (LoUs) from PNB over a seven year period, and to have used them to get loans from overseas branches of other, mostly Indian banks.

Choksi, who owns Gitanjali Gems, told employees he did not want anyone to suffer due to an association with him, but that he was in no position to pay their salaries and they were free to look for other opportunities until he could prove himself innocent.

“With recent false allegations levelled against me of defrauding the PNB Bank and media frenzy, the situation has gone grave, which is turning graver by the day,” Choksi wrote in the letter sent to employees on Friday.

The PNB fraud, which came to light earlier this month, has shaken confidence in state-run lenders and turned the spotlight again on India’s deep-seated corruption problem.

At least a dozen people—six from the bank and six more from Modi’s and Choksi’s companies—have been arrested and the investigation is still continuing.

Modi, who according to Forbes magazine has a net worth of some $1.8 billion, owns Firestar International and a chain of eponymous boutique stores from New York to Beijing.

On Saturday, authorities seized a farmhouse, a solar power plant and land that belonged to him.

Also on Saturday, Enforcement Directorate (ED), which fights financial crimes, said on Twitter it had taken possession of 21 other properties belonging to Modi worth Rs524 crore in the latest swoop in Mumbai and Pune.

Earlier in the week, ED said it had seized luxury cars worth millions of rupees belonging to Modi.

A lawyer for Modi has denied his client was involved in any fraud.

Choksi’s firm, Gitanjali Gems, has also denied involvement in the PNB fraud.

Separately, police on Thursday registered a case against a Delhi-based jeweller on a fraud complaint filed by Oriental Bank of Commerce, another state-owned bank, a police source said.

The lender has alleged the firm, Dwarka Das Seth International, cheated the bank with the help of some of its officials, using letters of credit (LCs) — a loan instrument similar to those used by Modi’s and Choksi’s firms in the alleged fraud.

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News Network
December 16,2025

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The deletion of over 58 lakh names from West Bengal’s draft electoral rolls following a Special Intensive Revision (SIR) has sparked widespread concern and is likely to deepen political tensions in the poll-bound state.

According to the Election Commission, the revision exercise has identified 24 lakh voters as deceased, 19 lakh as relocated, 12 lakh as missing, and 1.3 lakh as duplicate entries. The draft list, published after the completion of the first phase of SIR, aims to remove errors and duplication from the electoral rolls.

However, the scale of deletions has raised fears that a large number of eligible voters may have been wrongly excluded. The Election Commission has said that individuals whose names are missing can file objections and seek corrections. The final voter list is scheduled to be published in February next year, after which the Assembly election announcement is expected. Notably, the last Special Intensive Revision in Bengal was conducted in 2002.

The development has intensified the political row over the SIR process. Chief Minister Mamata Banerjee and her Trinamool Congress have strongly opposed the exercise, accusing the Centre and the Election Commission of attempting to disenfranchise lakhs of voters ahead of the elections.

Addressing a rally in Krishnanagar earlier this month, Banerjee urged people to protest if their names were removed from the voter list, alleging intimidation during elections and warning of serious consequences if voting rights were taken away.

The BJP, meanwhile, has defended the revision and accused the Trinamool Congress of politicising the issue to protect what it claims is an illegal voter base. Leader of the Opposition Suvendu Adhikari alleged that the ruling party fears losing power due to the removal of deceased, fake, and illegal voters.

The controversy comes amid earlier allegations by the Trinamool Congress that excessive work pressure during the SIR led to the deaths by suicide of some Booth Level Officers (BLOs), for which the party blamed the Election Commission. With the draft list now out, another round of political confrontation appears imminent.

As objections begin to be filed, the focus will be on whether the correction mechanism is accessible, transparent, and timely—critical factors in ensuring that no eligible voter is denied their democratic right ahead of a crucial election.

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News Network
December 22,2025

The Bharatiya Janata Party (BJP) received ₹6,654.93 crore in donations during the 2024-25 financial year — a Lok Sabha election year — registering a 68 per cent increase over the previous fiscal.

In its annual contribution report submitted to the Election Commission on December 8, two days ahead of the deadline, the BJP disclosed all donations exceeding ₹20,000. The report, now available on the Commission’s website, covers contributions received between April 1, 2024 and March 30, 2025 — a period marked by the general election and Assembly polls in Arunachal Pradesh, Sikkim, Andhra Pradesh, Odisha, Jammu and Kashmir, Haryana, Jharkhand, Maharashtra and Delhi.

The BJP, the world’s largest political party by membership, had reported donations of ₹3,967 crore in 2023-24. The latest figures represent the party’s highest donation receipts in the last five years.

Electoral trusts accounted for around 40 per cent of the BJP’s total donations. The Prudent Electoral Trust contributed ₹2,180 crore, followed by the Progressive Electoral Trust with ₹757 crore and the New Democratic Electoral Trust with ₹150 crore. Contributions from other electoral trusts together amounted to ₹3,112.5 crore. The remaining funds came from corporate donors and individuals. Electoral trusts are entities set up by companies to channel donations to political parties.

Among major corporate contributors, Serum Institute of India donated ₹100 crore, Rungta Sons Private Limited ₹95 crore, Vedanta ₹67 crore, and Macrotech Developers (formerly Lodha Developers) ₹65 crore. Three Bajaj Group companies together contributed ₹65 crore, while Derive Investments donated ₹50 crore.

Other notable donors included Malabar Gold (₹10 crore), Kalyan Jewellers (₹15.1 crore), Hero Group (₹23.65 crore), Dilip Buildcon Group (₹29 crore), ITC Limited (₹35 crore), Wave Industries (₹5.25 crore) and Zerodha’s investment firm, promoted by Nikhil Kamath, which contributed ₹1.5 crore.

Several BJP leaders also made individual donations. Assam Chief Minister Himanta Biswa Sarma donated ₹3 lakh, Assam minister Pijush Hazarika ₹2.75 lakh, Union Education Minister Dharmendra Pradhan ₹1 lakh, Odisha Chief Minister Mohan Charan Majhi ₹5 lakh, Indore Mayor Pushyamitra Bhargava ₹1 lakh, and Akash Vijayvargiya, son of senior BJP leader Kailash Vijayvargiya, also donated ₹1 lakh, among others.

In contrast, most opposition parties reported a sharp decline in donations. The Congress received ₹522.13 crore in 2024-25, a fall of about 43 per cent from ₹1,129 crore in the previous year. The Trinamool Congress saw donations drop to ₹184.08 crore from ₹618.8 crore, while the Bharat Rashtra Samithi reported just ₹15.09 crore, down from ₹580 crore.

The Aam Aadmi Party, however, recorded an increase, collecting ₹39.2 crore compared to ₹22.1 crore last year. The Telugu Desam Party received ₹85.2 crore in donations, down from ₹274 crore, but also earned ₹102 crore through fees and subscriptions. The Biju Janata Dal reported ₹60 crore in donations, compared to ₹246 crore in the previous fiscal.

The 2024-25 financial year is also the first without electoral bonds, after the Supreme Court struck down the scheme as unconstitutional in February 2024. Since its introduction in 2018, the electoral bond scheme had enabled political parties to receive over ₹16,000 crore in anonymous donations, with the BJP receiving the largest share. 

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News Network
December 21,2025

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Invoking the teachings of Prophet Muhammad—“pay the worker before his sweat dries”—the Madras High Court has directed a municipal corporation to settle long-pending legal dues owed to a former counsel. The court observed that this principle reflects basic fairness and applies equally to labour and service-related disputes.

Justice G. R. Swaminathan made the observation while hearing a petition filed by advocate P. Thirumalai, who claimed that the Madurai City Municipal Corporation failed to pay him legal fees amounting to ₹13.05 lakh. Earlier, the High Court had asked the corporation to consider his representation. However, a later order rejected a major portion of his claim, prompting the present petition.

The court allowed Thirumalai to approach the District Legal Services Authority (DLSA) and submit a list of cases in which he had appeared. It also directed the corporation to settle the verified fee bills within two months, without interest. The court noted that the petitioner had waited nearly 18 years before challenging the non-payment and that the corporation could not be fully blamed, as the fee bills were not submitted properly.

‘A Matter of Embarrassment’

Justice Swaminathan described it as a “matter of embarrassment” that the State has nearly a dozen Additional Advocate Generals. He observed that appointing too many law officers often leads to unnecessary allocation of work and frequent adjournments, as government counsel claim that senior officers are engaged elsewhere.

He expressed hope that such practices would end at least in the Madurai Bench of the High Court and added that Additional Advocate Generals should “turn a new leaf” from 2026 onwards.

‘Scandalously High Amounts’

While stating that the court cannot examine the exact fees paid to senior counsel or law officers, Justice Swaminathan stressed that good governance requires public funds to be used prudently. He expressed concern over the “scandalously high amounts” paid by government and quasi-government bodies to a few favoured law officers.

In contrast, the court noted that Thirumalai’s total claim was “a pittance” considering the large number of cases he had handled.

Background

Thirumalai served as the standing counsel for the Madurai City Municipal Corporation for more than 14 years, from 1992 to 2006. During this period, he represented the corporation in about 818 cases before the Madurai District Courts.

As the former counsel was unable to hire a clerk to obtain certified copies of judgments in all 818 cases, the court directed the District Legal Services Authority to collect the certified copies within two months. The court further ordered the corporation to bear the cost incurred by the DLSA and deduct that amount from the final settlement payable to the petitioner.

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