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The special court has rejected Choksi’s petition in which he had sought to cancel the ongoing proceedings to declare himself a fugitive economic offender. ED said that Choksi has not appeared before the court, hence this action against him is justified.
New Delhi. Diamond businessman Mehul Chokse, accused of Punjab National Bank fraud, has suffered a major setback. A special court in Mumbai has rejected Mehul Choksi’s petition to cancel the proceedings of declaring him a fugitive economic offender (FEO). Choksi said through his lawyers that he is in custody in Belgium. He has been arrested on the request of India. Therefore Belgian custody should be considered ‘constructive custody’.
The Enforcement Directorate (ED) opposed Choksi’s argument, saying that Choksi is opposing the legal proceedings in Belgium so that he can avoid coming to India and until he is handed over to Indian agencies and produced before the court, the petition to declare him an FEO is completely valid. Agreeing with ED’s arguments, Special Judge A. V. Gujarathi rejected Choksi’s petition.
Petition was filed in 2018
In 2018, ED had filed a petition to declare Choksi a fugitive economic offender. After a person is declared a fugitive economic offender, the government can confiscate his properties even before the trial begins. Choksi left India and fled abroad on 7 January 2018. He is accused of taking illegal financial benefits by issuing fake letters of undertaking from PNB.
Additional Solicitor General Anil Singh opposed Choksi’s plea in the court, saying that the diamond merchant has been continuously evading criminal action and has not returned to India despite the issue of non-bailable warrant. Singh said that Choksi filed 37 applications through his lawyers to oppose his declaration as FEO, which is only a delay tactic.
If you surrender, the proceedings will stop.
Anil Singh argued that if Choksi surrenders and returns to India, the proceedings to declare him a fugitive will stop. He also informed that a similar petition was filed by Choksi’s nephew Nirav Modi, which was rejected during the hearing in UK courts and he was declared FEO in 2020.
In September, the Additional Solicitor General had said that in the warrant pending against him, it is written that he has to be arrested and produced in the court here. Can they be introduced today? When he comes to India, ED will not pursue this application, but at present he cannot be brought to India nor can he be produced in the court. Therefore this petition can be heard and a decision can be taken on it.
