Court Upholds ED's Pursuit of Mehul Choksi as Fugitive Economic Offender

A special court rejected Mehul Choksi's plea against the notice to declare him a Fugitive Economic Offender. The court found the issuance of the notice by the Enforcement Directorate not based on incorrect facts. Choksi and his nephew are accused of a major fraud at Punjab National Bank.

A special court on Friday turned down diamond merchant Mehul Choksi's plea challenging a notice designating him as a Fugitive Economic Offender (FEO) in the PNB scam at the request of the Enforcement Directorate (ED).

Judge S M Menjoge stated the notice served to Choksi was grounded on accurate facts, dismissing claims of 'wrong facts or mistaken assumptions.' Choksi and his nephew Nirav Modi face allegations of defrauding Punjab National Bank (PNB) of Rs 13,400 crore, and the court noted no change in the ED's stance since the application to declare Choksi as an FEO.

Despite advocating medical reasons for his departure, Choksi's lawyers argued inconsistencies in the ED's claims. Meanwhile, the court noted Choksi's failure to contest his Indian passport suspension. Under the 2018 Fugitive Economic Offenders Act, individuals accused of economic offences leaving to evade prosecution may be declared as FEOs.

(With inputs from agencies.)