Court refuses to drop FEO proceedings against Mehul Choksi
A special PMLA court refused to drop the proceedings initiated by the ED to declare fugitive diamond trader Mehul Choksi a fugitive economic offender (FEO)
MUMBAI: A special PMLA court refused to drop the proceedings initiated by the Enforcement Directorate (ED) to declare fugitive diamond trader Mehul Choksi, a prime accused in the alleged fraud of ₹13,850 crore at Punjab National Bank (PNB), a fugitive economic offender (FEO).
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Choksi, in his plea filed in September, claimed that the grounds mentioned by the ED to declare him a fugitive economic offender did not exist, contending that the agency kept changing its stance.
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Choksi’s advocate Rahul Aggarwal claimed that the ED initially submitted that Choksy fled the country anticipating arrest after disposing of his properties. However, the agency later submitted that Choksy had obtained the citizenship and passport of Antigua and Barbuda in 2017, as he was planning to leave India.
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He further submitted that Choksy left India in January 2018 for his medical treatment and the case was registered against him in February 2018. Since his Indian passport was suspended by the passport authority, he could not return to India to participate in the investigation. Requesting the court to recall the notice issued under the FEO Act, he submitted that the grounds mentioned by the ED to declare Choksi a fugitive offender do not exist under the changed circumstances.
Refuting claims that the ED changed its stance, the prosecution submitted that Choksy, on the contrary, kept changing his stand on the grounds of medical reasons and suspension of his passport. They contended that Choksy has received notice in the case and can come back to India by obtaining travel documents from competent authority to join the investigation. They argued that the court issued the notice in 2018, and Choksy filed the application in September this year, after a gap of six years.
The special sessions judge observed, “On careful perusal of record, I did not find any change in stand of ED.” It added that it instead it was Choksy who changed his stand from medical ground to suspension of passport.
The court also relied on a previous case, where it was held that the criminal court has no power to recall its order. “Order of issuance of notice to applicant is neither passed on wrong facts or mistaken assumption,” it stated.
The court rejected another application filed by Choksy, claiming that the ED did not comply with a previous court order regarding the production of relevant records or documents to justify the grounds of him being a FEO. “The statement of material required for reason to believe is already supplied with the main application,” it said.
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