Antigua’s Citizenship by Investment Unit (CIU) has confirmed that Mehul Choksi, who is wanted in the Punjab National Bank fraud case, was granted its citizenship in November 2017, more than two months before the bank lodged a complaint against him with the Central Bureau of Investigation.
The CBI has sought details on Mr. Choksi from the Antiguan authorities following intimation through the Ministry of External Affairs that he had already left the United States and was now in the Caribbean nation. The query has been sent as a follow-up to the diffusion notice issued through the Interpol seeking his whereabouts.
Responding to media reports, Antigua’s CIU issued a statement on Tuesday stating that “after extensive vetting, Mehul Choksi was granted citizenship by registration in November 2017”.
The unit said Mr. Choksi’s application was subject to “robust due diligence international investigation, which is conducted on each principal applicant and dependent, by reputable agencies, including the International Criminal Police Organisation and the CARICOM Implementing Agency for Crime and Security”.
The 2017 investigation revealed no derogatory information about Mr. Choksi, it said, adding: “The CIU also confirms that on January 15, 2018, Mr. Choksi swore the Oath of Allegiance in Antigua, a requirement under the provisions of the Citizenship by Investment Act”.
However, the CBI -- a nodal body -- on Wednesday said no international agency had ever contacted it for verification of Mr. Choksi’s antecedents for the purpose of citizenship. Some other cases involving him and his company were then pending in Indian courts.
The CBI said Mr. Choksi’s Antiguan citizenship would not impact the effectiveness of the Interpol’s Red Notice, whenever it is issued against him. “Red Notice is opened against an individual, based on particulars like name and age. Whenever the subject enters the jurisdiction of any Interpol member country, its database will highlight his presence,” said an official.
The Red Notice seeks location and detention of the subject, besides intimation to the requesting agency.
Antigua & Barbuda is a member of the Interpol. Even though India does not have any bilateral extradition or mutual legal assistance legal treaty with the country, an official said, it can seek Mr. Choksi’s custody by invoking obligations under the international law, including the United Nations Convention against Corruption. Its cooperation may also be sought under the Financial Action Task Force mechanism.
Mr. Choksi had flown out of the country in the first week of January, days before the CBI registered an FIR against him on the bank’s complaint.
Given that he had already got the Antiguan citizenship through the investment route, the probe agencies believe that the move was part of a conspiracy to escape the law after allegedly cheating the bank of over ₹7,080 crore through Gokulnath Shetty, the then deputy manager with its Brady House branch in Mumbai. Mr. Shetty retired in May 2017.
The fugitive diamond merchant stayed in the United States for some time. However, just before the agencies could initiate proceedings to secure his custody, he shifted to Antigua.
The Antiguan citizenship programme offers individuals its citizenship via donation of $1 lakh to the government; investment of $4 lakh in the real estate (plus applicable transaction charges); or at least $15 lakh, plus other expenses, in business projects. Additional payments have to be made for citizenship to the dependants.
