PNB Scam : Give CBI Letter Of Authority To Access Bank Accounts, Supreme Court Suggests To Nirav Modi's Brother-in-Law

The Supreme Court on Tuesday suggested to Nirav Modi’s brother-in-law Mainak Mehta to provide the Central Bureau of Investigation (CBI) with a "Letter of Authority" for bank accounts which are being probed by the CBI in relation to the Punjab National Bank (PNB) fraud case. The matter was listed before a bench comprising Chief Justice DY Chandrachud and Justice PS Narasimha. 

The CBI had approached the Apex Court against the Bombay High Court order allowing Mehta to travel to his home in Hong Kong. Mehta is a British national who lives in Hong Kong with his family. He returned to India on September 8, 2021 and made his first appearance before the court in Mumbai. After a few months, Mehta expressed that his work back home in Hong Kong was pending and that his family, consisting of a wife, children, and elderly parents, needed him. Mehta was permitted to travel home. Both the CBI and ED are investigating the Punjab National Bank case against Nirav Modi and have filed charge sheets in the case.

Today, ASG SV Raju, appearing on behalf of CBI, while challenging the Bombay HC's decision of allowing him to got o Hong Kong stated–

"The situation here is- last time I requested my learned friend to give us a letter of authority which was refused. That is why we had to get a Letters Rogatory (LR). We apprehend that huge amounts of money has gone into those accounts. He is not giving us access to the account. He is a foreign national, his wife is Belgian national. Once he leaves, he will not come back."

The letters Rogatory (LR) was issued by CBI to a Singapore court for obtaining evidence against Mehta in the PNB Scam case. Letters Rogatory is a document making a request through a foreign court to obtain evidence from a person living under the territorial jurisdiction of the requested court within the ambit of Mutual Legal Assistance Treaty (MLAT) and on the basis of reciprocity if no such treaty exists. 

When the bench asked why a letter of authority was not given to CBI, Sr Adv Amit Desai, appearing for Mehta, submitted–

"My life is going in this, I have been in India away from home for long. False allegations are made by CBI. We have always co-operated. We have done everything. We are willing to give the letter of authority but then I'll have to stay in India for another year. The ED has said I'm not a flight risk. I am only saying let me go for some time, I will come when needed. Travel application has become an investigation."

According to Mehta, he was accused only in the ED case, which is why he had travelled to Mumbai from Hong Kong. However, the CBI flagged issues with regard to non-disclosure by Mehta of transactions in bank accounts, including the one based in Singapore, and two transactions of USD 8.9 million and USD 1.8 million transferred by Modi’s father. CBI said Mehta should share the details with it after which he might be considered for travelling abroad.

CJI DY Chandrachud asked–

"Are you willing to give the letter of authority? What we suggest is, Mr Desai, either you accede to the request and you give Letter of Authority to CBI. Alternatively, we'll hear the matter."

To this, Sr Adv Desai responded –

"There is no issue of non-cooperation. We've always cooperated. Then the CBI is coming here and saying this. Give me interim relief to travel. There is a business meeting happening in Dubai, first time after covid. Allow me to travel for this period."

However, the bench was not convinced. CJI DY Chandrachud said–

"Once we do that, we're dismissing the SLP of CBI without hearing the matter. That can't work. We can't compel your client to give the letter but then we'll hear the SLP. You may reflect on whether your client wants to give the letter of authority. We'll allow you to reflect on our suggestion to give the letter to CBI. Take it from us that if you don't give it, we won't hold it against you. But take till Tuesday to decide."

CJI Chandrachud also requested ASG Raju to complete the process within a fair time frame if the letter was provided to CBI.

The matter is now listed for 9th February 2023.

Case Title: CBI v. Mainak Mehta & Ors. | SLP(Crl) No. 8915/2022 II-A

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