The Enforcement Directorate (ED) on Thursday strongly opposed a plea by absconding businessman Mehul Choksi, seeking dismissal of proceedings to declare him a Fugitive Economic Offender (FEO) in connection with the over ₹13,000 crore Punjab National Bank (PNB) fraud case.
Appearing before a special court, Additional Solicitor General Anil Singh, representing the ED, argued that Choksi was deliberately avoiding Indian jurisdiction by fighting extradition in Belgium.
“FEO proceeding terminates only when he appears, so it cannot be terminated now. It’s a special law with special provision,” the ED submitted.
The agency added that if Choksi truly wished to end the proceedings, he could return to India voluntarily.
“On one hand, he contests proceedings in Belgium saying he cannot be extradited, and on the other he claims that being in custody there makes the FEO plea infructuous. This contradiction shows he chose to stay away and not participate in the Indian proceedings,” the ASG told the court.
Choksi, who moved to Belgium in 2023 after leaving Antigua and Barbuda, is currently facing extradition proceedings in a Belgian court. He was arrested there on the basis of India’s request in pending cases.
His counsel argued that since he is already in custody and extradition requests have been made, the ED’s application to declare him an FEO should be dismissed.
A declaration as Fugitive Economic Offender empowers Indian authorities to seize assets, including those located abroad, of persons who evade Indian law by staying outside the country.
Choksi, along with his nephew Nirav Modi, is accused of orchestrating the massive PNB fraud that shook the Indian banking sector in 2018. While Modi is fighting extradition from the UK, Choksi has been shifting jurisdictions to avoid being brought back to India.
The special court noted ED’s submissions and posted the matter for further hearing when Choksi’s lawyers will present their detailed arguments.
