A special CBI court has cancelled the Look Out Circular issued against Maiank Mehta, the brother-in-law of fugitive diamantaire Nirav Modi and an accused-turned-approver in the ₹13,850 crore Punjab National Bank fraud case. In its order dated July 2, the court found no material on record suggesting Mehta was attempting to evade legal process or delay the trial, noting his consistent cooperation with investigators and judicial proceedings.
From Frozen Accounts to Approver Status
Mehta’s position in the case has shifted considerably over the years. Swiss authorities froze accounts worth ₹283.16 crore belonging to Nirav Modi and his sister Purvi Mehta in June 2019, and the Singapore High Court subsequently ordered four accounts held in the names of Modi, Purvi and Mayank Mehta frozen as well, reportedly containing around ₹44 crore, while Interpol issued red notices against both Purvi and Mehta at the time. The CBI has separately alleged in later proceedings that roughly $30 million was transferred into Mehta’s Singapore account from one of Nirav Modi’s Dubai-based shell companies, a transaction the agency cited when it previously opposed cancelling his LOC.
That opposition has since softened considerably. Mehta was granted pardon by a special Prevention of Money Laundering Act court in January 2021 in two Enforcement Directorate cases linked to the fraud, and the same court cancelled the non-bailable warrants pending against him in September 2021 after he appeared before it and agreed to serve as a prosecution witness. The Special CBI Court extended similar treatment in September 2025, granting him pardon in connection with a supplementary chargesheet on the condition that he make a full and true disclosure of all circumstances known to him concerning the offence and everyone connected to it.
Why the Court Found No Flight Risk
Mehta, a British citizen of Indian origin who has resided in Hong Kong for nearly 35 years running business operations across Hong Kong and China, had sought cancellation of the LOC on grounds that frequent international travel to countries including Thailand, Vietnam, Australia and Canada was essential to his commercial activities. The court noted he had remained represented throughout the proceedings and complied with directions issued during the investigation, and since his statement had already been formally recorded as an approver under the Code of Criminal Procedure, it held that cancelling the LOC would not prejudice the prosecution or hamper the ongoing trial. The court clarified, however, that its order does not alter the conditions the Bombay High Court imposed in 2023 when permitting Mehta to travel abroad, which continue to require him to furnish any information the CBI seeks during his travels and remain available for investigation whenever required.
The broader PNB fraud case dates back to January 2018, when the CBI registered an FIR against Nirav Modi, certain PNB officials and others over the fraudulent procurement of roughly 150 Letters of Undertaking from the bank’s Brady House branch between February and May 2017, allegedly without following prescribed procedures. Investigators say the fraudulent LoUs enabled the accused entities to draw large amounts of overseas credit from foreign branches of Indian banks, resulting in an estimated ₹13,850 crore loss to Punjab National Bank. While Mehta’s LOC has now been cancelled in view of his cooperation and approver status, proceedings against the remaining accused, including Nirav Modi himself, continue before the competent courts and investigating agencies.
