PNB Fraud Case: Special Court Rejects Plea To Drop FEO Proceedings Against Mehul Choksi; ED Says Extradition Still Pending

Mumbai, Nov 28: The special court hearing cases against Mehul Choksi, an accused in the multi-crore Punjab National Bank fraud, has refused to dismiss proceedings initiated to declare him as a fugitive economic offender (FEO) following a request by the Enforcement Directorate (ED).

Choksi’s Lawyers Argue Arrest in Belgium Makes FEO Plea Redundant

He was arrested on 11 April by the Belgium police following an extradition request from the Central Bureau of Investigation (CBI). On this ground, Choksi’s lawyers had moved a plea seeking to curtail the FEO proceedings.

“The applicant is currently in custody (in Belgium) for cases pending in India for which an extradition request was made by Indian authorities. Therefore, the ED's application to declare him as an FEO deserves to be dismissed,” argued the plea.

ED Counters: Accused Contesting Extradition, Not Handed Over to India Yet

Countering the argument earlier, the central agency underlined that the accused has not yet been handed over to Indian agencies. If he so desires, he can come to India and the agency might consider not pressing with the application to declare him an FEO, said the ED.

ED Highlights Contradictions in Choksi’s Stand Before Belgium Court

It had further pointed out, “On one hand, Choksi is contesting proceedings in Belgium court, saying he cannot be extradited. On the other hand, he argues that the application to declare him an FEO becomes infructuous as he is already under arrest.”

ED Argues FEO Plea Not Infructuous as Extradition Proceedings Still Pending

Appearing for the ED, additional solicitor general Anil Singh had said, “He will be handed over to the Indian authorities subject to the judicial proceedings, which are yet to conclude. Hence, saying that my application becomes infructuous is not correct.”

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FEO Declaration Critical for Confiscation of Assets in Fraud Cases

The ED had filed the plea to declare Choksi an FEO in July 2018. His nephew Nirav Modi was declared an FEO in June 2020. Such a declaration is crucial in financial fraud cases as it enables authorities to confiscate assets in India and abroad.

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