Special CBI court rejects Nirav Modi aide’s plea to cancel warrant in PNB fraud

Mihir Resham Bhansali, who has lived in the US since 2005, argued that he was not properly served legal notices abroad and sought permission to join virtually.

Holding that an accused cannot evade legal proceedings for years and then seek relief, a special Central Bureau of Investigation (CBI) court on Monday rejected Mihir Resham Bhansali’s plea to cancel a non-bailable warrant issued against him in a ₹6,498-crore tranche of the Punjab National Bank (PNB) fraud case linked to fugitive diamantaire Nirav Modi. The court noted that Bhansali had remained absconding for years despite knowing about the proceedings.

Nirav Modi is the prime accused in the wider ₹13,000-crore Punjab National Bank fraud case. (HT Archive)

Special judge Subhash K Karhale observed that Bhansali had deliberately stayed outside India and evaded the legal process. The court noted that his trial was separated in November 2023 due to his continued absence, a proclamation had been issued against him and his passport had been revoked.

Accused cites US residency and lack of service of summons

Bhansali, through his advocate Mudit Jain, argued that he had been living in the United States since 2005 and held a Green Card. He contended that neither the CBI nor the court had served him summons in the US and alleged that the agency had failed to follow the Union ministry of home affairs’ guidelines for serving legal notices abroad. He also cited relief granted to co-accused Sunil Verma, but the court said Verma’s case involved different circumstances.

Opposing the plea, CBI special public prosecutor Limosin A argued that Bhansali knew about the fraud and his alleged role in it but had evaded arrest. The agency said it had pursued extradition and deportation to bring him back to India and argued that the warrant should remain in force.

The court noted that notices asking Bhansali to appear were issued in May and September 2019, followed by email correspondence and summons in December that year. A non-bailable warrant was issued against him on June 29, 2020. It observed that Bhansali had known about the case since 2018 but had failed to appear, adding that he could not benefit from his own conduct.

Judge refuses request to join proceedings by video

It also refused Bhansali’s request to join proceedings by video. “The applicant-accused has remained absconding for several years and hence he cannot be allowed to remain present before this Court through video conferencing,” the judge observed, citing the seriousness of the allegations.

The case relates to the CBI’s investigation into fraudulent Letters of Undertaking (LoUs) issued through PNB’s Brady House branch in Mumbai. According to the court order, the bank reported that 150 LoUs issued in 2017 amounted to approximately ₹6,498 crore.

The CBI filed an initial charge sheet in May 2018 covering eight fraudulent LoUs and a supplementary charge sheet in December 2019 covering 142 more. Bhansali was named as accused number 30 in the supplementary case, which alleges criminal conspiracy, cheating, criminal breach of trust and offences under the Prevention of Corruption Act.

The case is part of the wider PNB fraud, estimated at around ₹13,000 crore, involving Nirav Modi and other accused. The allegations against Bhansali have yet to be established at trial.