A special court in Mumbai on Friday rejected an application filed by absconding businessman Mehul Choksi seeking the dismissal of proceedings to declare him a Fugitive Economic Offender in the Punjab National Bank fraud case. The matter was heard by the court designated to handle cases under the Prevention of Money Laundering Act.
Choksi, a prime accused in the multi-crore PNB fraud, had filed the plea after his arrest in Belgium in April this year. Through his application, he urged the court to drop the Enforcement Directorate’s request to declare him an FEO, arguing that he is currently in custody in connection with cases pending in India. He also stated that Indian authorities have already made a formal extradition request to Belgium.
The court, however, rejected his plea, allowing the FEO proceedings to continue. The Enforcement Directorate has maintained that Choksi fled the country to evade investigation and has not returned despite multiple summons and warrants. The FEO proceedings were initiated to enable the confiscation of his properties under the Fugitive Economic Offenders Act, which applies to individuals who leave India to avoid prosecution for economic offences involving at least Rs 100 crore.
Choksi has remained outside India since early 2018, shortly before the PNB fraud came to light. The case relates to alleged fraudulent Letters of Undertaking issued by the bank, leading to massive losses.
With the latest court decision, the process to declare Choksi a Fugitive Economic Offender is expected to move forward, pending further hearings.
