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By:

Rajendra Joshi

3 December 2024 at 9:20:26 am

Rajesh Kshirsagar walks into a political trap

The Shiv Sena MLA has chosen confrontation over the Shaktipeeth Expressway risking political isolation Kolhapur: Shiv Sena MLA Rajesh Kshirsagar’s aggressive support to the proposed Shaktipeeth Expressway has brought him face-to-face with former MP Raju Shetti. But the political fallout has not stopped there. In quick succession, he has taken on Congress leader Satej Patil, questioned the position of fellow Mahayuti legislator Chandradip Narake and criticised his own party colleague, Public...

Rajesh Kshirsagar walks into a political trap

The Shiv Sena MLA has chosen confrontation over the Shaktipeeth Expressway risking political isolation Kolhapur: Shiv Sena MLA Rajesh Kshirsagar’s aggressive support to the proposed Shaktipeeth Expressway has brought him face-to-face with former MP Raju Shetti. But the political fallout has not stopped there. In quick succession, he has taken on Congress leader Satej Patil, questioned the position of fellow Mahayuti legislator Chandradip Narake and criticised his own party colleague, Public Health Minister and Kolhapur Guardian Minister Prakash Abitkar. That is a lot of political fronts for one MLA to manage simultaneously. The immediate question, therefore, is not whether Kshirsagar has the courage to fight. He clearly does. The more important question is whether he has calculated the political cost of fighting everyone at once. The Shaktipeeth Expressway has become one of the most contentious political issues in Kolhapur district. Raju Shetti has turned the proposed acquisition of agricultural land into a farmers’ rights issue and has built a sustained campaign around it. His politics has always thrived on confrontation. His rise from the sugarcane farmers’ movement to the Assembly and then the Lok Sabha was built on his ability to convert farmers’ grievances into political mobilisation. Kshirsagar has now chosen to meet that politics head-on. His controversial warning against Shetti, in response to the latter’s aggressive rhetoric on land acquisition, transformed a policy disagreement into a personal political duel. Supporters of both sides have since taken the confrontation to the streets. This is precisely where political calculation becomes important. Supporting a flagship project backed by the Chief Minister can certainly send a message to the leadership in Mumbai. Kshirsagar is willing to stand by the government when the going gets difficult. But the same position can create political liabilities at home, particularly when the project affects constituencies where local MLAs are under pressure from farmers. Different Question Kshirsagar’s decision to attack Satej Patil raises a different question. Patil remains one of the most influential political figures in Kolhapur. Suggesting that he may struggle to win the next Assembly election is not routine political criticism. It is an open challenge. That challenge may energise Kshirsagar’s supporters. It may also consolidate his position among those within the ruling establishment who see Patil as a principal political adversary. But there is a danger in confusing political visibility with political strength. Every additional opponent creates another front that has to be managed during an election. And Kshirsagar has already opened several. The most politically revealing part of Kshirsagar’s criticism of Chandradip Narake and Prakash Abitkar. Narake represents a constituency through which the Shaktipeeth project passes. His opposition, therefore, has an obvious electoral logic: he has to respond to the concerns of his voters. Kshirsagar’s criticism of Narake puts him in a difficult position. He is effectively asking another ruling-party MLA to subordinate constituency politics to the government’s larger project. Then came the attack on Abitkar. To publicly accuse the party’s Kolhapur Guardian Minister of failing to strengthen the organisation amounts to washing the party’s dirty linen in public. Ministerial Ambition There is another possible explanation for Kshirsagar’s increasingly combative posture: the unresolved question of ministerial ambition. A three-time MLA would naturally expect that electoral experience and political seniority might eventually translate into a Cabinet berth. Instead, when the opportunity came, Eknath Shinde chose Prakash Abitkar and gave him an important Cabinet portfolio. Kshirsagar was left outside the ministry. His present position on the State Planning Board gives him a role, but it is not the same political currency as a Cabinet berth. It would be simplistic to suggest that every recent statement is merely an expression of that disappointment. But it would be equally naïve to ignore the possibility that political frustration has influenced his increasingly assertive posture. The Shaktipeeth issue may simply have provided the trigger. Kshirsagar should also be looking closely at the arithmetic of Kolhapur North. The constituency has a history of surprising political outcomes. Its old-city peth culture is blunt, politically conscious and capable of producing results that defy conventional calculations. The last Assembly election demonstrated this dramatically. Madhurimaraje Chhatrapati’s withdrawal as the Congress candidate left the Opposition scrambling just weeks before polling. Satej Patil then backed municipal corporator Rajesh Latkar, who entered the contest with barely 15 days to campaign. Yet Latkar secured nearly 81,000 votes. Kshirsagar won by around 23,000 votes, but the number that should concern his camp is not merely his winning margin.

India waits to lasso diamantaire Mehul Choksi

Mumbai: India rubbed its hands gleefully as the Belgium Police honoured its request to arrest the absconder diamantaire Mehul Chinubhai Choksi – more than seven years after he, along with his nephew Nirav Deepak Modi - allegedly duped the Punjab National Bank of nearly Rs. 13,800-crores.

 

The scam involving the ‘Mehul Mama-Nirav Bhanja’ erupted in Jan 2018, after the PNB lodged a complaint with the Central Bureau of Investigation (CBI).

 

By then the kin, along with many of their family members, winked and slipped out of the country, leaving a rattled India rubbing its palms in disappointment.

 

A political-cum-financial storm raged, embarrassing the Bharatiya Janata Party government of Prime Minister Narendra Modi a year before the Lok Sabha elections.

 

Multiple agencies launched a multi-pronged probe into what became the biggest banking scam in the past quarter century – and almost four times bigger than the stock market-cum-banking fraud the late Big Bull Harshad Mehta had inflicted on the Indian economy 33 years ago (in April 1992) – when it was just opening up.

 

In Belgium

According to official reports, Choksi was living with his Belgium citizen-wife Preeti in Antwerp, a global diamond hub, presumably for the past 18 months on a ‘residency permit’ acquired through questionable means, for medical reasons.

 

Earlier, he shot to the headers (June 2021) while being taken in a wheelchair to a court by the Dominican Republic's Police on charges of sneaking into the small country in the Caribbean Sea, North America.

 

Interestingly, as the Antigua & Barbuda government initiated the process to cancel his citizenship acquired through an investor visa, Choksi had suddenly gone ‘missing’ till he surfaced in the Dominican Republic.

 

The April 2025 action by Belgium followed a request by India’s CBI and the financial frauds specialist Enforcement Directorate (ED) to nab Choksi as the InterPol had revoked his Red Corner Notice in 2023.

 

Mama and Bhanja

‘Mama’ Choksi is the founder-owner of Gitanjali Group while ‘bhanja’ Nirav’s Firestar plus other companies – and the duo, with some PNB officials hand-in-glove – conspired to make a ‘mamu’ of not only PNB, but other banks, as it subsequently tumbled out.

 

After making a quiet exit, Choksi was detected living in the verdant Antigua & Barbuda Isles (West Indies), then attempted entry to the Dominican Republic, was sent back to Antigua & Barbuda and then went to Belgium where he was nabbed on Sunday.

 

Similarly, Modi was found sauntering on the streets of London and nabbed in March 2019. He remains in jail there since India's extradition is still pending.

 

However, India is keeping its fingers crossed that it may finally lay hands on Choksi, bring him to India and face trial in the PNB scam, though it may take time.

 

Born in Mumbai (1959) and educated in Gujarat, Choksi, 66, and wife Preeti have three children.

 

The Rs. 13,800-crore PNB scam

In the modus operandi revealed after India’s second-largest PSU bank PNB admitted it was scammed, Choksi and Modi used fraudulent Letters of Undertaking (LoU) to get overseas credits or loans from Indian banks.

 

The PNB first informed the Reserve Bank of India (RBI) of the fraud and then lodged a criminal complaint with the CBI in Jan. 2018, plus another CBI complaint in Feb, that led to a FIR against Modi and Choksi and their companies.

 

The ED entered the scene to probe the allegations of money-laundering through the LoUs – which they allegedly misused to avail short-term business finances from foreign branches of Indian banks.

 

The probe said that the duo were availing the LoUs from the PNB’s Brady House Branch from March 2011, and over the next six-seven years, managed to get a whopping 1,200-plus LoUs like a breeze with the help of some friendly bankers within.

 

Post-scam, the gold-diamond companies Gitanjali Group and Firestone Group with multiple operations in India and abroad have largely wound up, while some personal assets of the mama-bhanja have been auctioned to recover a part of the dues.

 

ED's plea to declare Choksi fugitive stuck for seven years

Even as absconding diamantaire Mehul Choksi, a key accused in the Punjab National Bank loan fraud case, has been arrested in Belgium, the ED's plea to declare him a fugitive economic offender has been pending before a court in Mumbai for nearly seven years.


Choksi, 65, and his nephew diamantaire Nirav Modi are the prime accused in the Rs 13,000 crore PNB bank loan fraud case. Choksi was arrested in Belgium following an extradition request by Indian probe agencies, official sources said on Monday.


The Enforcement Directorate had filed the application in July 2018, seeking to declare Choksi an FEO and confiscate his assets under provisions of the Fugitive Economic Offenders Act.


However, the matter has witnessed repeated delays owing to a barrage of applications filed by the accused in the PMLA court and the Bombay High Court alleging procedural lapses in the Enforcement Directorate's plea.


"The court is kept busy with frivolous applications, and hearing on our application to declare him (Choksi) an FEO has been adjourned for the past seven years,” an ED officer had said after the hearing was once again deferred this February.


"The court should have continued the hearing and taken a decision on the future course of action once the application was moved," the officer had said.

He had urged the court to take note of the repeated filing of similar applications and to not entertain them.


Choksi's lawyer had informed the court that the accused was undergoing treatment for suspected cancer in Belgium and intended to file an application in connection with his health.


Under the FEO Act, an individual can be declared a Fugitive Economic Offender if a warrant has been issued against him for an offence involving Rs 100 crore or more and he has left India while refusing to return. Once declared an FEO, the person's property can be confiscated by the investigating agency.


Choksi had challenged the ED's application in the Bombay High Court, alleging that the agency "had not followed proper procedure before filing the application and, hence, it stands vitiated".


However, in September 2023, the High Court dismissed his plea, ruling that the ED had adhered to the prescribed format under the FEO Act. It also vacated a stay on the special court's proceedings.


Despite this, the hearing on declaring Choksi FEO could not commence, with Choksi continuing to file applications before the special court through his lawyers.


While most of these pleas have been dismissed, a few remain pending. His latest attempt to stall proceedings through a plea to recall the notice issued on the ED's FEO application was rejected in December 2023.


According to ED officials, Choksi left India under suspicious circumstances in early January 2018.


Shifting stance

Choksi's counsel has argued that the ED kept shifting its stance on the material grounds for declaring him an FEO and that the suspension of his Indian passport made it impossible for him to return for investigation.

The court, however, rejected this argument, stating that the notice was issued based on accurate information and not based on "wrong facts or mistaken assumptions".


ED claimed the accused left the country under suspicious circumstances in the first week of January 2018.


Nirav Modi has already been declared as an FEO by the special court. He has been lodged in jail in London since 2019.

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