Mumbai: Mehul Choksi Faces Setback As Court Rejects Plea Against ED's Fugitive Offender Case

Mumbai: The special court has rejected the plea filed by Mehul Choksi’s lawyer seeking dismissal of the Enforcement Directorate’s (ED) application to declare Choksi a fugitive economic offender (FEO). The lawyer had argued that ED cannot continue with the proceedings as the matter is also under investigation by the Serious Fraud Investigation Office (SFIO).

It was contended that the proceedings initiated by ED to declare Choksi as an FEO should be dismissed because the same allegations are being investigated by SFIO. The plea was opposed by ED prosecutor Kavita Patil, who argued that the application is not maintainable. Patil submitted that the prohibition under the Companies Act against investigation by agencies other than SFIO applies only to offences under the Act.

She further noted that a similar plea had been filed by the defence earlier and was rejected by the special court. She claimed that the current application was filed with a mala fide intention to delay the proceedings. The court observed that the Central government, on February 17, 2018, ordered SFIO to investigate the affairs of 67 companies and three LLPs connected with Choksi.

The court clarified that the Companies Act does not bar investigations under other laws. Therefore, the assignment of investigation to SFIO does not prevent the court from proceeding with the ED’s application under the FEO Act. Meanwhile, the court also dismissed a plea to add an official liquidator to represent Gitanjali Gems Ltd, which has gone into liquidation.

The plea was opposed by Patil, who noted that a similar application was made in 2019 and rejected. The court said that such requests cannot be considered at this stage, as the matter is not yet before it.

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