Mumbai Court Dismisses Mehul Choksi's Plea Against Economic Offender Status

Court Ruling on Mehul Choksi's Status

A Mumbai court has rejected the petition filed by fugitive diamond trader Mehul Choksi, which sought to annul the process of declaring him a 'fugitive economic offender' in connection with the Punjab National Bank (PNB) fraud case.

Previously, a similar petition by Choksi was dismissed by a special court under the Prevention of Money Laundering Act (PMLA) in November. This earlier plea referenced his arrest in Belgium and the extradition proceedings initiated by Indian authorities.

In his latest petition, Choksi requested the court to dismiss the Enforcement Directorate's (ED) application that aimed to label him as a fugitive economic offender.

Choksi argued that according to the Companies Act, the federal investigative agency cannot continue its proceedings while the Serious Fraud Investigation Office (SFIO) is investigating the same allegations.

Conversely, the special public prosecutor, Kavita Patil, representing the ED, stated that the provisions mentioned in Section 212(2) of the Companies Act only apply to offenses under that Act.

Patil emphasized that there are no restrictions on prosecuting offenses under other laws. Mehul Choksi and his nephew Nirav Modi are the primary accused in this scandal.

Both the Central Bureau of Investigation (CBI) and the ED are conducting investigations into the case. They are accused of defrauding over ₹13,000 crores by bribing officials at the Brady House branch of Punjab National Bank in Mumbai.

Extradition proceedings against Choksi are ongoing, while Nirav Modi remains incarcerated in a London prison.