In a significant turn of events in the long-running Punjab National Bank (PNB) fraud case, a CBI special court in Mumbai has pardoned Maiank Mehta, the brother-in-law of fugitive diamantaire Nirav Modi. The decision, passed on Monday, officially turns Mehta from an accused into a key prosecution witness, a move the Central Bureau of Investigation (CBI) believes will be a game-changer in securing the conviction of the main conspirators.

From Accused to Approver

Maiank Mehta, a British national, was initially named as one of the accused by the CBI for his alleged role in diverting funds siphoned from PNB. However, earlier this year, Mehta filed a plea to become an approver in the case, promising to make a full and true disclosure of the circumstances surrounding the financial conspiracy.

The special court, after considering the CBI’s submission that his testimony would provide crucial insider details, granted him a pardon under Section 306 of the Code of Criminal Procedure (CrPC). This decision is conditional upon him providing a complete and credible account of the events.

Potential Impact on the Case

This development is being viewed as a major strategic victory for the prosecution. Legal experts believe Mehta’s testimony could be the key to unraveling the complex web of shell companies and illicit transactions used to launder the defrauded money.

  • Insider’s Account: As a close relative of Nirav Modi, Mehta is believed to have intimate knowledge of the financial dealings, overseas trusts, and the specific roles played by Modi and other family members.
  • Strengthening Extradition Efforts: His testimony could provide fresh, direct evidence to bolster the case for Nirav Modi’s extradition from the United Kingdom, where he is currently imprisoned.
  • Uncovering the Money Trail: The CBI expects Mehta to shed light on how the money obtained through fraudulent Letters of Undertaking (LoUs) was routed through a maze of international firms and eventually used to purchase assets abroad.

“Turning a key insider into a witness is a classic prosecutorial strategy, especially in complex white-collar crimes,” commented Vidya Krishnan, a senior legal analyst. “Mehta’s testimony can provide a narrative and connect the dots in a way that a mountain of documents alone cannot. It humanizes the evidence for the court.”

A Brief on the PNB Scam

The PNB scam, which came to light in 2018, is one of India’s largest banking frauds, pegged at over Rs. 13,000 crore. The case revolves around the issuance of thousands of fraudulent Letters of Undertaking (LoU) by officials at a Mumbai branch of the Punjab National Bank. These LoUs were used by firms controlled by Nirav Modi and his uncle, Mehul Choksi, to secure loans from the overseas branches of other Indian banks.