Sunil Varma, former international head of Gitanjali Group, appeared in court after being named in the PNB scam case

MUMBAI: Three years after being named in a supplementary chargesheet submitted in the Rs 13,000 crore scam case related to Punjab National Bank in which absconding businessman Mehul Choksi is an accused, Sunil Varma, former international head of Gitanjali Group of Companies, appeared before the special court on Thursday.
Varma, who was in the US with his family, appeared in court in Mumbai after his non-bailable warrant was stayed.While CBI‘s special public prosecutor, A Limosin, sought 14 days of police custody, arguing that Varma was a key accused and had been an outlaw for absconding, his lawyer, senior counsel Aabad Ponda, opposed the plea, stating it was not maintainable as Varma had not been arrested.
Ponda also sought bail. He submitted that Varma had not absconded and had left the country in 2017 before the FIR was registered in the case. The court granted interim bail and said an order related to the remand would be pronounced on Saturday.
In the remand application, CBI stated after Mehul Choksi, Varma, who held a key position in the 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 the entire business activities… and overseas dummy companies, at the behest of the prime offender, Mehul Choksi,” CBI said.
CBI further stated his custody was needed to unearth his involvement in the conspiracy with Choksi and others in availing 142 buyer’s credits amounting to Rs 3,011 crore. The amount was disbursed against 165 unauthorised LoUs (letters of understanding) issued by PNB between March 1 and April 29, 2017, on behalf of Gitanjali Gems Ltd, Gili India Ltd and Nakshatra Brands Ltd. “To unearth the role of Sunil Varma in the purported underlying transactions against which buyer’s credit was availed on the basis of the issuance of unauthorized LoUs by PNB…,” CBI said.
CBI also cited other alleged fraudulent transactions. “To unearth the role of Sunil Varma in establishing overseas dummy companies at the behest of Mehul Choksi and also his involvement in managing the business activities of overseas dummy companies,” CBI concluded.