MUMBAI: A special court on Saturday rejected the CBI’s plea for 14-day custody of Sunil Varma- accused in the Rs 13,000 crore Punjab National Bank-related scam. Varma, the former international head of Gitanjali Group of Companies, appeared in court this week three years after being named in a supplementary chargesheet.
Varma, who was in the US with his family, appeared in court in Mumbai after his non-bailable warrant was stayed. While the CBI sought custody, submitting that he had been an outlaw for absconding, his lawyer opposed the plea stating it was not maintainable as Varma had not been arrested. Varma had been granted interim bail on Thursday, after the judge adjourned the pleas for orders to Saturday.
After the court rejected the CBI’s plea, another application was filed by the investigating agency for permission to arrest Varma. The court adjourned the matter to Tuesday for reply and hearing. Varma’s interim bail was extended until then. His lawyer had submitted that Varma had not absconded and had left the country in 2017, before the FIR was registered in the case.
In the remand plea, the CBI said that after Mehul Choksi, Varma, who was holding a key position in Gitanjali Group of Companies, was not available throughout the investigation. “He was instrumental in establishing overseas dummy companies, appointing employees of Gitanjali Group of companies as directors and authorized signatories in these overseas dummy companies, and managing entire business activities… and overseas dummy companies, at the behest of the prime offender, Mehul Choksi,” the CBI said.
The CBI said that his custody was needed to unearth his involvement in a conspiracy with Choksi and others in availing 142 buyers’ credit amounting to Rs 3,011 crore. The amount was disbursed against 165 unauthorized LOUs (Letters of Understanding) issued by PNB from March 1 to April 29, 2017, on behalf of M/s Gitanjali Gems Ltd, M/s Gili India Ltd, and M/s Nakshatra Brands Ltd. The CBI also cited other fraudulent transactions, like “to unearth the role of Sunil Varma in establishing overseas dummy companies at the behest of Mehul Choksi,” the CBI said.
