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Special Court Grants Interim Bail to Former Gitanjali Executive Sunil Varma in PNB Bank Scam


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A special court in Mumbai on Thursday granted interim bail to Sunil Varma, a former top executive of Gitanjali Group, implicated in the Punjab National Bank (PNB) scam. This decision came while the Central Bureau of Investigation (CBI) sought his custody.

Background of the Accused

Sunil Varma, who served as the international business head for fugitive diamond merchant Mehul Choksi’s Gitanjali Group, had been on the run since the scam was uncovered in 2018. Varma maintained that he had been living abroad since 2017 and was not served any summonses by the investigators.

CBI’s Stance

The CBI argued that Varma, alongside Mehul Choksi and others, was a key figure behind the PNB scam, facilitating money laundering through shell companies. Special Public Prosecutor A Limosin, representing the CBI, stated that Varma evaded the agency’s summonses and notices, escaping the country to avoid investigation. The CBI emphasized that under the law, an individual unavailable for investigation can be taken into custody even post-chargesheet filing to uncover case-related facts.

Defense’s Argument

Advocate Aabad Ponda, representing Varma, countered the CBI’s claims, asserting that Varma had been residing in the US. Ponda argued that the CBI sent notices to an address in Mumbai, which did not constitute proper service of notices to Varma. He contended that the summonses should have been served to Varma’s US address, noting that the FIR was filed after Varma had already moved abroad in 2017. Ponda further argued against the maintainability of the CBI’s plea for Varma’s custody without an arrest.

Court’s Decision

Special Judge SM Menjoge scheduled the next hearing for July 20, granting interim bail to Varma in the interim. Varma was named as an accused in the PNB scam cases by both the Enforcement Directorate (ED) and the CBI. Non-Bailable Warrants (NBWs) were issued against him in August 2018 (ED case) and July 2021 (CBI case).

High Court Involvement

In April, Varma approached the Bombay High Court seeking the cancellation of the warrant in the CBI case. His legal team conveyed his intention to return to India and requested protection. The High Court canceled the warrant and directed the probe agencies to facilitate Varma’s appearance before the special court.

Recent Developments

Following the High Court’s directives, Varma approached the special court dealing with Prevention of Money Laundering Act (PMLA) cases on July 1 to cancel the pending warrant. Special Judge Menjonge suspended the warrant in the money laundering case and instructed the ED not to execute it until further notice.

Context of the Scam

Mehul Choksi has resided in Antigua since 2018, having fled India shortly before the PNB scam surfaced. Choksi and his nephew, Nirav Modi, are accused of defrauding the PNB of over Rs 13,000 crore by utilizing letters of undertaking (LoUs) and foreign letters of credit (FLCs) through bribery of officials at the bank’s Brady House branch in Mumbai.

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