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Court Rejects Mehul Choksi's Plea to Dismiss Fugitive Economic Offender Status in ₹13,000 Crore PNB Fraud Case

A special Mumbai court has rejected diamantaire Mehul Choksi's application to dismiss proceedings classifying him as a Fugitive Economic Offender in the ₹13,000 crore Punjab National Bank fraud case. Despite his recent arrest in Belgium, the Enforcement Directorate successfully argued that FEO proceedings can only terminate when the accused returns to India. Choksi continues to fight extradition while his nephew and co-accused Nirav Modi remains imprisoned in London.
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Court Rejects Mehul Choksi's Plea To Drop Fugitive Economic Offender Tag

Mehul Choksi and his nephew Nirav Modi are identified as the primary defendants in the substantial financial scandal.

Mumbai:

Diamantaire Mehul Choksi, a key suspect in the Punjab National Bank (PNB) fraud investigation, experienced a significant legal setback on Friday when a special court denied his request to terminate proceedings that would classify him as a Fugitive Economic Offender (FEO).

After being apprehended in Belgium in April this year, Choksi filed a petition with the special court overseeing Prevention of Money Laundering Act (PMLA) cases, requesting dismissal of the Enforcement Directorate (ED)'s application to designate him an FEO.

Choksi argued that he is currently detained for cases pending in India, for which Indian authorities submitted an extradition request to Belgium.

Consequently, he maintained that the ED's application to declare him an FEO should be dismissed since he is already in custody for cases related to India.

The ED contested his petition, stating that the 66-year-old is avoiding return to India while contesting extradition proceedings initiated against him in Belgium.

The investigative agency explained that FEO proceedings conclude only when a fugitive accused appears, so termination is not currently possible.

They emphasized that the application lacks merit and warrants dismissal.

Under the FEO Act, an individual may be designated an FEO if a warrant has been issued against them for an offense involving ₹100 crore or more and they have departed from the country and refuse to return. Once declared an FEO, the investigating agency can seize their property.

On October 17, a Belgian court upheld India's extradition request for the diamond merchant. However, he has challenged this ruling in Belgium's Supreme Court.

Choksi and his nephew Nirav Modi are principal suspects in the multi-crore scam under investigation by both the Central Bureau of Investigation (CBI) and the ED.

They are accused of allegedly misappropriating over ₹13,000 crore of public funds from PNB through Letters of Undertaking (LoUs) and foreign letters of credit (FLCs) by bribing officials at the bank's Brady House branch in Mumbai.

While Choksi faces extradition proceedings, Nirav Modi is imprisoned in London.

Source: https://www.ndtv.com/india-news/court-rejects-mehul-choksis-plea-to-drop-fugitive-economic-offender-tag-9718685