In a major development in the Punjab National Bank (PNB) fraud case, a special Central Bureau of Investigation (CBI) court has granted conditional pardon to Maiank Mehta, the brother-in-law of fugitive diamantaire Nirav Modi. The order, passed by Special CBI Judge AV Gujarathi on September 22, 2025, allows Mehta to turn approver, provided he gives a “full and true disclosure” of all facts regarding the scam and those involved.
The PNB fraud, valued at over ₹13,000 crore, is among the largest banking scandals in India’s history. It involved the fraudulent issuance of Letters of Undertaking (LoUs) by PNB officials in collusion with companies linked to Nirav Modi and his uncle Mehul Choksi. These fraudulent LoUs enabled large-scale siphoning of funds from the bank, triggering widespread CBI and Enforcement Directorate (ED) investigations.
Maiank Mehta, a British citizen residing in Hong Kong, was implicated for his role in assisting Nirav Modi’s business dealings. According to CBI chargesheets, Mehta facilitated the misuse of fraudulent LoUs through transactions involving Nirav Modi’s company, Radhashree Jewellers. Investigators allege that funds obtained via the scam were routed into Mehta’s accounts and subsequently transferred to Purvi Modi, Nirav Modi’s sister, allegedly as a gift.
In his order, Judge Gujarathi noted that Mehta’s cooperation could significantly aid in uncovering further details and holding all responsible parties accountable. The decision reflects a legal strategy that prioritizes dismantling the entire network behind the PNB fraud by securing testimony from insiders.
The move is expected to add momentum to ongoing investigations against Nirav Modi and others implicated in the scandal. Mehta’s decision to turn approver may expose further leads, potentially unraveling more complex financial transactions tied to the case.
The PNB scam, first exposed in 2018, has continued to impact India’s banking and regulatory framework. This latest development underscores the CBI’s commitment to pursuing justice through thorough investigation and strategic cooperation agreements with accused individuals.
