Court Denies Choksi's Request to Stop FEO Proceedings
A special court in Mumbai delivered a significant ruling on Friday by rejecting absconding businessman Mehul Choksi's petition to halt proceedings under the Fugitive Economic Offenders (FEO) Act. Choksi had argued that since he is currently under arrest in Belgium, the legal actions against him in India should be suspended.
Enforcement Directorate's Strong Opposition
The Enforcement Directorate (ED) vigorously opposed Choksi's plea, asserting that the extradition process is actively underway. Additional solicitor general Anil Singh, representing the ED along with special public prosecutor Kavita Patil, presented compelling arguments during September hearings.
Singh highlighted the contradiction in Choksi's position, stating: "On one hand, he's contesting proceedings in Belgium court saying, 'I cannot be extradited to India,' while simultaneously claiming his application becomes infructuous due to his arrest." The ED emphasized that judicial processes for extradition are ongoing and Choksi will be handed over to Indian authorities once these proceedings conclude.
Background of the PNB Fraud Case
Mehul Choksi stands accused in the massive Punjab National Bank fraud case involving over Rs 13,000 crore. This marks not the first time Choksi has attempted to challenge the FEO Act proceedings. Last year, the court similarly rejected his plea seeking recall of a July 2018 order that issued him notice under the Fugitive Economic Offenders Act.
During previous legal battles, Choksi's legal team had argued that before declaring him a fugitive economic offender, the court must examine "reasons to believe" based on material evidence with authorities. The ED countered this position in their rejoinder, presenting evidence suggesting Choksi had anticipated the fraud discovery and attempted to dispose of properties before fleeing the country.
The court's firm stance reinforces the continuing legal pressure on Choksi, despite his physical absence from India. The ruling ensures that proceedings under the Fugitive Economic Offenders Act will proceed uninterrupted, maintaining the legal framework designed to tackle economic offenders who flee the country.
